Over the past few years, kathy wood, the ceo and cio of arkan vest, has seen a large sum of her investments pay off big time, despite being known for tesla. She has also successfully invested in many other companies such as crispr therapeutics square, roku, bitcoin and many more most recently. She has also made an extremely bold prediction about a small but growing market. She claimed that this one sector will go 10x in value over the next 5 years.

Additionally, behind this sector. She also has an etf that many of you may not have heard of before, and no i'm not talking about her 5 active etfs, which are arkg ark. Arkf arkq and arkw i'm talking about a separate arc fund that has massive potential, even though you probably have never even seen it before in this video, i'm going to go over what arc invests, undercover etf is and why kathy wood believes that this one market is The hidden gem of the new decade welcome to cas gaines academy if you're new to the channel, please consider subscribing for more content like this and let's get right into it. The sector that kathy wood and the ark invest team see tremendous potential in is 3d printing.

This is all under arcs etf, on 3d printing, which trades under the ticker symbol of prnt i'll, soon explain the potential of this etf and arc's investment strategy in this space. Now, before we have preconceived notions or search this etf up, let me explain what arc invest predictions for 3d are and why 3d printing has so much potential rxc's 3d printing as a misunderstood opportunity. So it is important for you, as an investor, to understand the potential and possible downsides of 3d printing by 2025 arc. Invest sees the 3d printing market increasing 10 fold to 120 billion dollars.

That's right. Arc is predicting a 10x value increase within just five years. Such a large increase is definitely not something to overlook additionally arc invest also claimed that 3d printing will usher. The third industrial revolution just for a quick review, the first industrial revolution in the mid 18th century centered around textile manufacturing and the innovations of the steam engine.

The second industrial revolution focused on steel production, the automobile and the advances in electricity now arc believes we are in the third industrial revolution. Clearly arc is projecting massive growth for the 3d printing industry, but you're probably wondering why does rx see so much potential with 3d printing before we get into that? If you're interested in seeing my full portfolio exclusive, buy and sell alerts, spreadsheets and more check out my patreon in the description below for more information, 3d printers work in a very unique way compared to traditional manufacturing. First, you'll start with the 3d model that is created on the software tool. Then the model will go through.

What is known as slicing slicing is essentially where 3d models cut into hundreds of thousands of layers with a slicing software platform. This is necessary for the final step. The 3d printer now works on printing the products layer by layer. This process is also generally known as additive layer manufacturing or additive manufacturing.

For short, the name additive layer manufacturing is self-explanatory, as 3d printers print by adding small layers to an object arc claims that additive manufacturing offers three key benefits. First of all, production becomes more adaptable and less labor intensive. This benefit makes sense, as instead of spending hours creating new production equipment. 3D printers are all based on software.

That can be easily changed. The second benefit is that production design is freed from manufacturing constraints and can accommodate greater complexity with little to no additional cost. In simpler terms, 3d printers allow manufacturers to create complex products. On the other hand, it is difficult to produce complicated products with traditional manufacturing techniques.

The last key benefit is that products become more customizable for consumers with 3d printing. This makes a lot of sense. As with 3d printing you can customize the products for each user's needs without any complications. On the flip side, traditional manufacturing requires new machines for every customized product.

Of course, there are some disadvantages to 3d printing, which is that 3d printing costs more than traditional manufacturing at a large scale. As you can see in this graph, 3d printing is a constant cost per unit model, whereas traditional manufacturing benefits from the economies of scale. In a paper written by arc analyst tasha kinney, she highlighted how analyst targets for 3d printing are all over the place. This is because traditional analysts don't seem to get the growth opportunities of 3d printing.

The 5 growth drivers of 3d printing will be key to producing the huge returns that arc predicts. First of all, software and modeling tool providers will lower the time it takes to bring a design to production. This will be done as new innovations are made within the 3d designing platforms. Second, innovative material manufacturers are going to find new form factors that were not possible with traditional manufacturing.

This includes precise implants for reconstructive surgery, 3d printed tissue cultures and even 3d helmets that can withstand much more force than normal helmets. Additionally, scanning and measurement companies are incorporating real-world measurements for design inputs. This will improve accuracy from 3d designs. On top of that, server sensors are beginning to help manufacturers transition to 3d printing, as 3d printing can be complicated.

And, lastly, the manufacturers that use 3d printing to their advantage will have numerous competitive advantages that will force other manufacturers to do the same. Not only that, but 3d printers are becoming faster, bigger and stronger. This means that costs will decline. As 3d printer manufacturers innovate to provide faster and larger printers to top this, all off 3d printers are becoming more and more accurate, which will increase their use for precise implants and organs.

Despite all of this, 3d printing is still at its early stages, which is why us investors can benefit from this revolution in arc, invest big ideas, 2021 report. They detail that 3d printing is just getting started at the moment when it comes to prototypes 3d. Printing has already penetrated 40 to 50 percent of that market. On the other hand, 3d printing only makes up four percent of the molds and tools market and one percent of the end use part market which includes everyday items like shoes.

This leaves plenty of white space for growth in the 3d printing sector. The adjustable market for 3d printing sits at 500 billion dollars with all kinds of markets to disrupt. This includes aerospace, footwear, plastic products, healthcare machinery, automobiles, semiconductors and metal products. 3D.

Printing today is mostly prototyping: that's about a 12 to 13 billion dollar industry globally. The unused part parts that go into the final product is about a 500 billion opportunity and we think it's only one percent penetrated today. So there's this massive green field, space uh opportunity for for 3d printing and we still think it's pretty early days for the technology. This will all be disrupted as 3d printing becomes cheaper and cheaper to the decreasing cost of biomaterials and when artificial intelligence merges with 3d printing to create new innovative products that traditional manufacturing cannot.

During the pandemic, 3d printing sales dropped across the market, but don't be fooled by that. Cathy wood often states that disruption thrives during difficult times, and that proved to be true in the pandemic. In an interview in may kathy would describe how boeing and airbus were under major financial stress which made them turn to 3d printing as a solution for improving margins. In fact, most recently several 3d printed flight parts were approved for the manufacturing of airplanes.

How is it changing industry? Is it really going to break through now? Yes, it is and uh you ask where it is it's in the valley of despair. Many stocks are down 80 to 90 percent from their highs, because their focus was on the consumer space and not on the industrial space aerospace. If aerospace companies like boeing and airbus, their gross margins are in the 15 to 20 percent range 3d printing. Now that the faa is approving it, 3d printing can cut those costs by up to 90, as well as lower the weight and form factors of of the various parts in engines and shrink the number of parts so uh aerospace.

We think uh, given the turmoil and trouble it's in right now it is going to seek out even uh more aggressively some of these new technologies that are going to help it get back to profitability. The reason why aerospace companies are beginning to flood in the 3d printing is because of the weight reduction, which leads to greater margins due to fuel costs. The healthcare industry is also adapting to 3d printing quite well. Tasha keaney from arkhanvest explained these adoptions.

In the following interview, so for aerospace, you can often save weight in 3d printing and a very small percentage savings in weight. So if you reduce the weight of a part by five percent, you could save uh 20 on fuel burn. So that makes a lot of difference to the the margins of these aerospace companies on the healthcare side. Anything that's customized.

Basically, you can scan a human body and print out an implant. That's designed specifically for the patient. Previously implants you'd find whatever the closest fit. Was you might actually have to shave away at the patient's bone to make it fit so you're getting shorter operating times and better patient outcomes with this technology? Let me know whether you think 3d printing will become the hidden gem of the next decade.

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