

WHITE PAPER · WITH AMPOWER

The Production Dilemma:
In-House vs. External
Parts Manufacturing
Decision factors for your metal additive manufacturing strategy
Published February 2025 · 21 pages
When a metal additive manufacturing part is ready for serial production, companies choose between buying printers and building expertise in-house or working with an external manufacturer. This guide, written with AMPOWER, sets out five decision factors and the pros and cons of each path. Its recommendation: build know-how in-house early, then qualify an external partner to scale.
Editor's note: Published February 2025. Figures and forecasts reflect that date. For current information, see Area Printing.
This guide was developed in partnership with the experts at AMPOWER

Matthias Schmidt-Lehr
Managing Partner of AMPOWER
AMPOWER is a strategy consultancy for industrial additive manufacturing, founded in 2017 and based in Hamburg, Germany. It advises investors, start-ups, suppliers and users of 3D printing and publishes the annual AMPOWER Report on the AM market. The guide opens with forewords by Matthias Schmidt-Lehr, Managing Partner of AMPOWER, and James DeMuth, Seurat's co-founder and CEO.

James DeMuth,
Co-Founder and CEO of Seurat Technologies
Key Findings
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Cost, upfront investment and ROI
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A production-ready setup can top $1.5 million before the first print, and the average machine alone is over $600,000. In-house pays off only if the machines stay busy.
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Manufacturing flexibility
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Volumes, materials and part sizes fluctuate, so one in-house machine is rarely fully used. Service bureaus can scale volume up or down more easily.
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IP sensitivity
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Performance-critical designs push toward in-house. Outsourcing them takes a partner you trust, in a jurisdiction with strong IP protection.
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Quality and know-how
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In aerospace and medical, companies usually build know-how in-house first so they can qualify an outside supplier later.
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Risk evaluation
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In-house keeps control but ties up capital and risks backing technology that soon becomes outdated. Outsourcing trades that for supplier reliability, quality and IP risk.
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In-house vs. External: Pros and Cons
In-house: pros | In-house: cons |
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Fast lead time, assuming available capacity | High upfront investment in equipment, personnel and associated risks |
High internal know-how | High overhead cost |
High degree of IP protection | Low flexibility for volume, technology platform, and choice of material |
High control over quality | ROI risk; total cost of ownership is hard to plan upfront |
Low supply chain interruption risk | Supply chain risk in case of machine failure |
Lower hurdles for design changes | No external know-how and collaboration may hinder good solutions |
Better integration with internal design and production |
External: pros | External: cons |
|---|---|
Scalable manufacturing capacity | Harder to build internal technology know-how |
Low upfront investment and low associated risk | Potential IP risk |
Technology obsolescence risk moves to the partner | Supplier qualification know-how needed |
Predictable costs and ROI | Supplier management, ramp-up and partnership required |
Knowledge transfer from the supplier's AM expertise | Higher cost at lower volumes |
Access to more manufacturing and post-processing capabilities without major investment | Potential supplier switching costs |
Related
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Getting Started: how to work with Seurat on a part
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Area Printing: the technology behind Seurat's production
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Surge Capacity: on-demand production at industrial scale