ILMA Compoundings September 2017 - 26

in industry organizations, such as ILMA and the Society of
Tribologists and Lubrication Engineers (STLE). Participating in these organizations gives your company exposure to
the right people, allowing your company to build a reputation of relevance within the industry.
Another approach to overcoming this challenge is through
"blueprinting" - that is, directly working with customers
to better understand their current and future needs. This
enables the identification of specific trends among customers and the development of products that are tailored to
address their most common needs. These products then have
a much greater chance of being embraced by customers for
testing and incorporation into formulations.

REGULATORY CHALLENGES
One of the biggest limitations to the size of the product
portfolio of a small- to midsize additive manufacturer is the
high cost and intensely involved process of registering new
products. The cost of registering one new product can easily
approach $1 million, and in some instances, that can be for just
one country's registry. Registering a product requires having it
tested extensively, and with a growing number of countries now
requiring country-specific registration, there is great variability
in the minimum required data set for a given registration.

"The cost of registering one new product
can easily approach $1 million, and in some
instances, that can be for just one country's
registry."
It can take two to three years for a product to complete
the registration process, so the sale of the product is inhibited during that period. In addition, during this time, an
alternate product can be brought to market, or the market's
needs and trends can shift. Another limitation is the tight
availability of contract research lab slots to complete the
required testing. These multiple challenges can make it difficult for innovation and growth of a product portfolio.
Given these challenges, smaller MWF additive manufacturers must come up with creative strategies to be able to
bring new products to market. One approach commonly
taken by these companies involves forming strategic partnerships and joint alliances to share the cost of registration.
Another option is taking an incremental approach to testing
each year as opposed to completing all the testing at one
time. The key to choosing the right option is understanding
the challenges associated with the regulatory process and
considering these challenges at the front end of the product
development process.

SEPTEMBER 2017

| COMPOUNDINGS | ILMA.ORG

CHANNEL-TO-MARKET CHALLENGES

Another challenge that small- to midsize additive manufacturers can face is related to their options for the channel to
market. Many of these manufacturers utilize distributors to
help expand their reach. While this is often a very beneficial
and useful path to market, it can provide some challenges for the growth of these companies. One of the biggest
advantages that a smaller manufacturer can have over a
larger manufacturer is the ability to have focused attention
on customers and to provide concentrated technical support
and customer service. This direct contact with customers is
diluted when going through a distributor, and sometimes
the relational aspect with the customer can be diminished.
Another challenge of working through distributors is that
they sell products for many companies, so there is not a

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ILMA Compoundings September 2017

Table of Contents for the Digital Edition of ILMA Compoundings September 2017