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  • As tech startups catch DoD’s eye, big investors are watching

    31 janvier 2020

    As tech startups catch DoD’s eye, big investors are watching

    By: Jill Aitoro SIMI VALLEY, Calif. — Private investors are not yet lining up to back defense startups, but they are paying close attention. Two factors have created an opening that could lure venture capitalists to defense investments: first, a few select venture-backed technology startups are gaining traction; and second, there's been a strategic shift in approach to weapons development from the U.S. Department of Defense, focusing more on information warfare and, as such, software. In the words of Mike Madsen, director of strategic engagement at the Pentagon's commercial tech hub, Defense Innovation Unit: "We're at a significant inflection point right now that will be visible through the lens of history.” Nonetheless, for the tech startups, it's been slow going, as discussed during a Defense News roundtable in California. For the second year, leadership from DoD and the tech community came together to discuss the state of the Pentagon's efforts to attract commercial startups — this time digging into the challenges and opportunities that come with investment in defense development. “We went into this eyes wide open, knowing full well that to the venture community, the math doesn't make sense. Making the choice to contribute to the advancement of artificial intelligence for DoD represented for us more of a mission-driven objective,” said Ryan Tseng, founder of artificial intelligence startup Shield AI. But early on, “we were fortunate to get the backing of Andreessen Horowitz, a top-tier venture fund. They're certainly leaning in, in terms of their thinking about defense technology — believing that despite the history, there might be a way to find an opening to create companies that can become economically sustainable and make substantial mission impact.” Shield AI has raised $50 million in venture funding since 2015, with more rounds expected. Indeed, a few key Silicon Valley investors have emerged as the exceptions to the rule, putting dollars toward defense startups. In addition to Andreessen Horowitz, which counts both Shield AI and defense tech darling Anduril in its portfolio, there's General Catalyst, which also invested in Anduril, as well as AI startup Vannevar Labs. And then of course there's Founders Fund. Led by famed Silicon investors Peter Thiel, Ken Howery and Brian Singerman, among others, the venture firm was an early investor in Anduril, as well as mobile mesh networking platform goTenna. Founders Fund placed big bets on Palantir Technologies and SpaceX in the early days, which paid off in a big way. Some of the early successes of these startups have “done an excellent job of making investors greedy,” said Katherine Boyle, an investor with General Catalyst. “There's a growing group who are interested in this sector right now, and they've looked at the success of these companies and [are] saying: ‘OK, let's learn about it.' ” Take Anduril: The defense tech startup — co-founded by Oculus founder Palmer Luckey and Founders Fund partner Trae Stephens — has raised more than $200 million and hit so-called unicorn status in 2019, reaching a valuation of more than $1 billion. As the successes piled up, so did the venture capital funding. According to Fortune magazine, those investors included Founders Fund, 8VC, General Catalyst, XYZ Ventures, Spark Capital, Rise of the Rest, Andreessen Horowitz, and SV Angel. “I started my career at Allen & Company investment banking. Herbert Allen, who's in his 80s, always said: ‘Hey, you should run into an industry where people are running away,' ” said John Tenet, a partner with 8VC as well as a co-founder and vice chairman of defense startup Epirus. “There's so much innovation occurring, where the government can be the best and biggest customer. And there are people who really want to solve hard problems. It's just figuring out where the synergies lie, what the ‘one plus one equals three' scenario will be.” Also attracting the attention of Silicon Valley investors is the growing emphasis by the Pentagon not only on systems over platforms, but software over hardware. Boyle described the shift as the “macro tailwind” that often drives innovation in a sector. Similar revolutions happened in industrials and automotive markets — both of which are also massive, global and slow-moving. That emphasis on tech, combined with some recent hard lessons, also provides a glimmer of hope that the typical hurdles associated with defense investments — lengthy procurement cycles and dominance by traditional manufacturers, for example — could be overcome. Consider U.S. Code 2377, which requires that commercially available items be considered first in procurement efforts, said Anduril's Stephens. He also noted court decisions in lawsuits filed by SpaceX and Palantir, which ultimately validated claims that defense agencies had not properly ensured a level playing field for major competitions. “These types of things are now at least in recent memory for Congress, and so they have some awareness of the issues that are being faced,” Stephens said. “It's much easier now to walk into a congressional office and say, ‘Here's the problem that we're facing' or ‘Here's the policy changes that we would need.' There are also enough bodies like DIU, like In-Q-Tel, like AFWERX, like the Defense Innovation Board, like the [Defense Science Board] — places where you can go to express the need for change. And oftentimes you do see that language coming into the [National Defense Authorization Act]. It's part of a longer-term cultural battle for sure.” For now, all these factors contribute to the majority of skeptical investors' decisions to watch the investments with interest — even if they still take a wait-and-see approach. And that places a lot of pressure on the companies that are, in a sense, the proof of concept for a new portfolio segment. “My fear is that if this generation of companies doesn't figure [it] out, if they don't knock down the doors and if there aren't a few successes, we're going to have 20, 30 years of just no investor looking around the table and saying we need to work for the Department of Defense,” Boyle said. “If there aren't some success stories coming out of this generation of companies, it's going to be very hard to look our partners in the eye and say: ‘We should keep investing in defense because look at how well things have turned out.'” https://www.defensenews.com/smr/cultural-clash/2020/01/30/as-tech-startups-catch-dods-eye-big-investors-are-watching/

  • Tech startups still face the Pentagon’s ‘valley of death’

    31 janvier 2020

    Tech startups still face the Pentagon’s ‘valley of death’

    By: Joe Gould WASHINGTON ― Brooklyn-based technology startup goTenna launched in 2014 with a candy bar-sized gadget that pairs with smartphones to create off-grid, no-network communications. Though it was originally a commercial product, the company has received millions of dollars' worth of government business since 2015, mostly with the U.S. Department of Homeland Security but also with Special Operations Command, the Air Force, the Navy and the Army. About 150,000 devices have shipped. The Army has spent millions of dollars with goTenna, but the service cannot give the company one of the most important things for a small business ― the certainty of recurring revenue. “Now the funding is out, and even the program officer for that program doesn't know where we go next within the Army,” goTenna founder and CEO Daniela Perdomo said at a Defense News-hosted roundtable in December. “That's in part why we've been spending more time, frankly, on civilian public safety. Because even though DHS is consistently [under funding restrictions], they seem to be moving. They seem to move faster.” That sort of inconsistency and confusion is why tech startups dealing with the Pentagon, as well as investors, so dread the gap between their innovative product's development and the Pentagon's sluggish decisions to launch. That gap has a nickname: “the valley of death.” The Pentagon has experimented with a variety of means to buy emerging technologies, an important goal as it seeks to preserve its edge against Russia and China. But one truism ― affirmed in a recent report from the Ronald Reagan Institute ― is that the federal government has been unable to fully adapt its practices to promote and harness private sector innovation, despite making strides. Addressing the House Armed Services Committee on Jan. 15, former Under Secretary of Defense for Policy Michele Flournoy said the valley of death between a product's development and the moment that product becomes part of a program of record remains an obstacle. She said that's partly because acquisitions officials don't use the new authorities granted by Congress over recent years. The excitement of receiving development money from the Department of Defense stands in stark contrast to what often follows. “[Startups] win the prototype competition: ‘Great, we love you.' And that's in, like, FY19,” Flournoy said. “And then they are told, ‘OK, we are going to have [a request for proposals] for you in '21,' and [the startups] are like: ‘OK, but what do I do in '20? I have got a 10-year hole in my business plan, and my investors are pressuring me to drop the work on DoD because it's too slow, it's too small dollars.'” How would Flournoy fix it? She advised the Pentagon to hire tech talent ― “smart buyers and developers and fielders of new technologies” ― and create a bridge fund for firms in competitive areas like artificial intelligence, cybersecurity and quantum computing. (The idea seemed to resonate with Texas Rep. Mac Thornberry, who is the panel's top Republican and the author of multiple acquisitions reform laws passed in recent years.) At the Defense News roundtable, leaders from the tech community said not only has it been difficult for small businesses to enter an aerospace and defense market dominated by five major firms, but it's hard for startups to justify to investors that the government should be retained as a client when it is often the least decisive. “I think the fundamental misunderstanding between the DoD and venture investors is just how difficult it is to keep the wheels on a fast-growing startup,” said Katherine Boyle of venture capital firm General Catalyst. But the Pentagon is working to bridge the gap between prototype and production. Over the last year, the Defense Innovation Unit ― the department's outpost in Austin, Texas; Boston, Massachusetts; and California's Silicon Valley ― has launched two internal teams, for defense and commercial engagement, to envision these transitions and match them to the Pentagon's five-year budgeting process, according to DIU's director of strategic engagement, Mike Madsen. These teams are tasked with learning the needs of the services, working with commercial industry to develop prototypes to meet those needs and then helping market the prototypes more broadly within the Defense Department. Along these lines, DIU helped a company that developed a predictive maintenance application for the Air Force ― Redwood City, California-based C3.ai ― win a predictive maintenance contract for Army ground vehicles. C3.ai has since created a federal arm unit. A quarter of all prototypes awarded by DIU transitioned to programs of record, and another 50 percent are eligible for the transition. “It will take time for us to develop the right cultural instincts, but it's already happening,” said DIU's director of commercial engagement, Tom Foldesi. Anduril Industries co-founder and Founders Fund partner Trae Stephens has often criticized the DoD's approach to Silicon Valley. But speaking at the Defense News panel, he acknowledged progress through DIU's ability to harness the flexible other transaction authority, a congressionally mandated contracting mechanism that makes it easier to prototype capabilities. He also praised the Air Force's effort to rework Small Business Innovation Research funds to target more mature technologies. “I don't know who's responsible for banging the table about it over and over, but somebody is out there saying it," Stephens said. “It seems to be coming across in the messaging in some way.” https://www.defensenews.com/2020/01/30/tech-startups-still-face-the-pentagons-valley-of-death/

  • ‘The math doesn’t make sense’: Why venture capital firms are wary of defense-focused investments

    31 janvier 2020

    ‘The math doesn’t make sense’: Why venture capital firms are wary of defense-focused investments

    By: Aaron Mehta WASHINGTON — In American's technology marketplace, venture capital funds are crucial for pumping capital into small companies in need of cash infusions to keep operating. Part of the venture capital model is acknowledging that many of those businesses will fail, but if a few are successful, venture capitalists can make huge returns on their investments. At a time when the Pentagon is working hard to entice small technology companies to work on defense projects, venture capital, or VC, funding could further mature technology and give entrepreneurs a chance to keep projects going. And yet, investors seem wary of putting forth cash to support companies with a defense focus. Why? In the wake of the very public fight inside Google over working with the Pentagon — which ended with the company pulling the plug on its Project Maven participation — there was a consensus from the defense establishment that there may be a culture gap that is simply too large to overcome. But according to a trio of venture capitalists who spoke to Defense News in December, the reasons are simpler. Katherine Boyle, with VC firm General Catalyst, said the culture issue is overblown for the VC community. The reluctance to work on defense programs comes down to a mix of “math and history," she said. "The math is the reason why investors are hesitant to put a third of their fund into these types of technologies because history shows us that they haven't worked out well,” Boyle explained. She said the math can be broken down into three factors: mergers, margins and interest rates. On the first, she pointed to the fact that the defense sector has seen thousands of firms exit the market, sometimes because of acquisitions by primes. But, she argued, where mergers and acquisitions tend to occur in other parts of the world to acquire new technology or capability, in the defense realm it's all about contracting value. That makes it “very difficult for new technologies to enter the market and ultimately be acquired at the valuations that venture investors would need to see in order to have a return for their fund.” In terms of margins, Boyle pointed out that defense firms are very focused on hardware, which requires a lot of investment upfront. That makes it “very difficult to invest in for venture capital firms because software has 80 percent margins, and it's much easier to build a company that can scale very quickly if it's software-based versus needing a lot of capital,” she said. The third factor, interest rates, ties into the last two. For decades interest rates have allowed VC firms to expand dramatically — something that requires a constant flow of return from investments in order to turn around funds and quickly invest in another opportunity. In the world of defense, investors with $3 billion to $5 billion under management by the VC community will find it difficult to get the kind of returns investors are accustomed to from other markets. All three of those factors come together in a mix that means there are very few chances for VC firms to invest in defense-related companies that match up with what a VC traditionally wants to see, said John Tenet, a partner with investment firm 8VC and vice chairman of the defense company Epirus. “VC investors invest based on speed and scale and probability of a 10 to 20 times return. And so I think that's where you've seen a little bit of apprehension, at least in [Silicon] Valley,” Tenet said. “The exits haven't been that fast, and you sort of have these five big players on one side [that] sort of monopolize the market.” From a pure numbers standpoint, a good benchmark for performance is to look at the S&P 500, according to Trae Stephens, co-founder and chairman of Anduril Industries and partner at Founders Fund. Over a 10-year period, an investor in the S&P can expect to get roughly 3 times their investment back. VC firms want to be able to beat that for an investment to be worth it. To highlight the challenge of attracting VC funding to defense firms with potentially limited return, Stephens pointed to the case of Blackbird Technologies. A venture-backed player in specialized communications tech aimed at the defense market, Blackbird was bought in 2014 by Raytheon for about $420 million. That looks good on paper, but the reality is the churn isn't strong enough for a big, Silicon Valley-based venture capital group. “A lot of times in the government, people say: ‘Oh, Blackbird is this, like, great example of a success story that was like a boost for venture.' It's actually not. It's not a venture scale of return for most funds,” he said. “There are some funds where the economics of [an exit that size] is really good, but for large, Silicon Valley tier-one funds, it doesn't move the needle. And so you have to have these multibillion-dollar opportunities in order for it to really make economic sense.” Another issue raised by Stephens will be familiar to defense primes as well: concerns over sharing intellectual property with the Defense Department. The department is essentially saying “you are the right product for us, now turn over your source code,” Stephens said. “It's crazy. We're literally doing to our companies in America what we're criticizing the Chinese for doing to their companies and to our companies when we enter that market. And so there has to be a better commercial practice for enabling companies to retain their IP and do business with the government without having to fight a legal battle every time they go through a contract.” ‘Knock down the doors' Despite those concerns, all three venture capitalists that spoke to Defense News are involved in investments in defense-focused firms. So why are they spending their money in the sector? Mission is part of it — the belief that, as Americans, a stronger Defense Department benefits their firms. But that only goes so far if dollars don't follow. Once again, it comes down to math. Investing in a company focused on defense technologies, which may have to wait years to secure a contract with the Pentagon, isn't a great strategy for a VC firm looking for quick returns. But if a company is able to get government funding early on, the business suddenly becomes more worthy of investment, said Boyle. “If the government is allocating capital in the right way, it will get VC dollars immediately. Like, it will follow so quickly,” Boyle said. “I see so many people come in to our office and they have an OTA [other transaction authority contract], and they're excited. It's a small, $1 million contract, and that is great for a seed company. But if that same company came in 18 months later and said, ‘Oh, by the way, the OTA has turned into a $10 million contract,' that would meet every milestone that I usually see to series A.” (An OTA is a type of contract that enables rapid prototyping; series A financing is the investment that follows growth from initial seed capital used to launch operations.) “$10 million to the US government is nothing, but to [a] startup — $10 million is the best startup I've seen all year, if they're an 18-month-old startup and they're getting that kind of capital early on,” she said. Added Stephens: “It means they're doing something right.” That creates a chicken and egg scenario: Venture capitalists only want to invest in companies that already have a Pentagon contract, but small firms often can't keep the doors open long enough without external funding while waiting for the department's contracting processes to progress. While groups such as the Defense Innovation Unit — the Pentagon's technology hub — are helping speed along that process, it remains a problem with no easy solution, at a time when the Pentagon needs the nondefense technology community in ways it hasn't for decades. Boyle believes there is a “growing group” of investors who see the strong success of a handful of companies like goTenna, Anduril or Shield AI that have managed to break through and become successful defense-focused investment vehicles. That means the next few years are going to be critical for everyone involved. “None of us would be here if we weren't optimistic,” she said. “I actually think this is an incredible time to be investing in deep tech, particularly deep-tech companies that are selling to the Department of Defense because if it doesn't happen now, it never will.” https://www.defensenews.com/smr/cultural-clash/2020/01/30/the-math-doesnt-make-sense-why-venture-capital-firms-are-wary-of-defense-focused-investments/

  • Better Control Over 3D Printing

    21 janvier 2020

    Better Control Over 3D Printing

    What's going on in that printing machine? For surgical repairs to a patient's hip or skull, surgeons might use a titanium bone implant. However, metal objects such as these – with complex outer forms, or with intricate internal features such as ducts or channels – can be difficult to make using conventional processes. To create these useful devices, manufacturers are turning to 3D printing, a process that typically involves building a part layer by layer, sometimes over minutes or hours. 3D printing of metal objects is a booming industry, with the market for products and services worth more than an estimated $2.3 billion in 2015 – a nearly five-fold growth since 2010. It's increasingly popular in the medical, aerospace, and automotive industries, where it can be used to make complex components such as fuel injector nozzles for engines. But the commercial technology is still relatively new, and maintaining quality control can be challenging and time-consuming. Two supposedly identical products made in the same way on the same machine don't necessarily come out with the same dimensions. Tiny imperfections can appear in the layers, reducing the strength properties of the components. And residual stresses can build up as the layers cool, creating cracks between layers and warping the parts. The stress can be so high, in fact, that it can warp a 1-inch thick piece of steel by a millimeter. To give manufacturers more control over this process, NIST researchers have built a metal 3D printing testbed, a custom-made printer that they can use to produce tools that will allow users to monitor the process in real time. The researchers hope to answer some fundamental questions, such as: How hot does the melting metal get in each layer? How do you lower the stresses that cause cracking and warping? And what sensors would you need in order to provide better information about what's happening inside the printing machine? Eventually, the researchers hope their system will be useful beyond 3D printing of metal objects, to look at solid materials that experience extreme heat, such as the wingtips of supersonic aircraft. https://www.nist.gov/pml/about-pml/pml-working-you/better-control-over-3d-printing

  • What AIAC’s Vision 2025 could mean for smaller sized enterprises

    6 janvier 2020

    What AIAC’s Vision 2025 could mean for smaller sized enterprises

    by Chris Thatcher; Skies Magazine Posted on December 24, 2019 When the Aerospace Industries Association of Canada in June released its blueprint for the next five years, Vision 2025: Charting a New Course, support for small- and medium-sized enterprises (SMEs) was one of its core themes. Small companies make up over 90 per cent of the sector and the report argued for greater government support to help them scale up, generate more jobs, and enhance their global competitiveness. That could include new funding to pursue digital business transformation, a reduction in the complexity of government contracting, and greater priority in the value propositions of prime contractors chasing defence procurements. “If our small- and mid-sized companies are left at risk, the negative impacts will be felt across Canada's aerospace industry as a whole,” according to the report, prepared by Jean Charest, a former premier of Quebec and deputy prime minister of Canada. Small companies are viewed as the prime creators of aerospace jobs and, in a sector buffeted by changing technology and new players, many may be more agile and better able to adapt than larger counterparts that must answer to corporate headquarters outside of Canada. But support from original equipment manufacturers (OEMs) and governments is essential to their survival, according to a panel of SMEs at the Canadian Aerospace Summit in November. There is no one-size-fits-all to helping SMEs scale up. Companies at different stages of growth require different types of support, they noted. But help with skilled labour shortages and easier access to government programs are common challenges for all. A solid position on a major platform is critical to initial success, but long-term growth requires diversification, observed Barney Bangs, chief executive officer of Tulmar Safety Systems. Located between Ottawa and Montreal in the small community of Hawkesbury, Ont., the company manufactures protective and safety equipment, associated components and in-flight training products. Traditionally, its focus has been 80 per cent defence — Tulmar has been a supplier to a military platform for over 25 years and benefitted from a strong aftermarket. In recent years, though, the company has sought a better balance between military and commercial customers. “As of last year, we were 65 per cent defence and 35 per cent (civilian) aerospace,” he said. Tulmar has also become more of what he called “a solution provider,” integrating components from other suppliers to provide an OEM with a final, certified piece of equipment such as an aircraft seat rather than just the safety harness or seatbelt. “We are doing more in-house and saving customer-costs for the OEM,” said Bangs. Diversification has also been a priority for Apex Industries, a machining, components, subassembly and structures manufacturer in Moncton, N.B. Twelve years ago, its aerospace business was five per cent defence and 95 per cent civil, much of it geared to Bell Helicopter and Bombardier. “We made a conscious effort to diversify into the military side a lot more,” said vice-president Keith Donaldson. “We are very conscious of not allowing our sales to go too high on one platform or with one customer.” Challenged by cost-savings pressures in commercial aviation contracts, military platforms offer a company like APEX “good visibility,” he said. However, militaries have long been trading quantity for technological superiority, meaning fewer platforms and a relatively short production cycle. And ramping up quickly with people and equipment to meet tight delivery schedules is a challenge for small businesses that need other options to justify and sustain the investment when the contract ends. “It is very tough for a SME like ourselves to invest.” However, defence procurement and government programs can go a long way to supporting the scale-up of SMEs, said Patrick Mann, president of Patlon Aircraft & Industries, a technical sales force for global manufacturers of custom components and systems. The scale-up program must be run by single entity within government committed to the Canadian SME community that would be “funded, independent and have the authority to make decisions.” Mann suggested coping what has worked well in other jurisdictions, noting the success of the United States Small Business Administration's set-aside program. “Within that, there is a small business innovation research program which has been highly successful in scaling up SMEs,” he said. The Vision 2025 report called for a federal scale-up program to “provide advice, coaching, networking, value proposition development and consortium-building support to incentivize growth and build capacity–helping firms expand their global footprints and giving them the means and maturity to support OEMs effectively.” The report recommended the Office of Small and Medium Enterprises (OSME) within Public Services and Procurement Canada shoulder that responsibility. “Having OSME at the table as a contributor to the development of government procurement strategies and as a champion of small and medium-sized business interests will help ensure government policies and programs recognize the unique characteristics of small firms,” it stated. “We are a pretty good example of a scale-up of an SME using competitive bid government procurement as a mechanism,” said Mann. However, developments over the past 10 years such as single point of accountability and bundling, where multiple small contracts are combined in one larger procurement that is awarded to one contractor, have been “devasting” to smaller suppliers. “It has been a real issue for us. Again, it is an issue where (OSME) can play a role.” OEMs can bolster government programs by mentoring small companies within their supplier base on management and production processes, especially around digitization, added Donaldson. “OEMs have a lot of that knowledge ... [but] I don't think [they] do enough of that.” He and Bangs both cautioned that the ability to scale up will be contingent on resolving talent shortages. Developing and attracting skilled labour is a chronic problem affecting the entire sector, but it is particularly acute for SMEs in more remote locations that don't have the resources to recruit as widely or navigate the immigration system. “Before we launch a scale-up program with support for financing and working capital, we have to make sure we have our skills done first,” said Donaldson. However the Liberal government opts to respond to the Vision 2025 report, the value of investing in SMEs should be clear. Viking Air, KF Aerospace or IMP Aerospace & Defence were once small companies and are “now thriving global participants,” said Mann. “That is the reason why todays SMEs are an important part of our industry.”

  • Last Week to Submit for Innovation Days in Austin

    16 décembre 2019

    Last Week to Submit for Innovation Days in Austin

    The Army is looking for new technology that can be in the hands of Soldiers by 2023. So we're inviting companies to share their ideas for the chance to "pitch" us during Innovation Days in Austin and earn a new Army contract. To be considered, submit your concept through our online portal, which guides you through the required information in a Turbo Tax® style. You can find more information on what to include in this quick overview or via the announcement. You may not know all of the answers, and that's ok. The more technical details, visuals, and vision you can share to illustrate your technology, the better we'll be able to assess it against the Army's needs. The deadline to submit concepts for this event is 4:00pm ET on December 20, 2019. We can't wait to see what you've got! https://aal.army/innovationdays/

  • Metal Additive Demonstration Program

    26 septembre 2019

    Metal Additive Demonstration Program

    The Metal Additive Manufacturing (AM) Demonstration Program is managed by CME Canada Makes with funding from NRC-IRAP. The program is designed to help Canadian companies by de-risking initial trials, increase their awareness and understanding to the advantages of metal additive manufacturing (AM) technology. The program focuses on additive manufacturing technologies such as laser powder bed such as Direct Metal Laser Sintering (DMLS), Laser Direct Energy Deposition (LDED), electron beam (EB) and other emerging metal AM technologies. Canada Makes works with a group of leading Canadian service providers of metal AM technologies who provide participating companies guidance and advice to the advantages as well as opportunities offered by adopting AM. A primary goal of the program for Canada's industry to learn about the cost savings associated with AM, and how they can take advantage of the main areas where AM excels at; light-weighting of parts, parts consolidation and complexity of design, the sweet-spots for metal AM. The program demonstrates the ability to produce low volume parts for diverse applications; including the repair of high performance/low cost tools, dies and plastic and composite moulds for stamping, forming, trimming high strength alloy steels and much more. Canada Makes assists in assessing the needs of manufacturers and how best it suits their business model. Some have needs like the fabrication of obsolete legacy parts no longer available, AM offers a relatively inexpensive solution. Others are tooling companies looking to improve productivity and gaining a competitive edge by adopting conformal cooling. Be they SMEs or larger corporations, AM is changing how we build things and this program is there to help them learn about the disruptions coming to their sector but also de-risks their initial trials of this exciting technology. The results will create awareness and encourage the adoption of AM technology, thus improving Canada's manufacturing and exporting sectors and our global competitiveness, resulting in new technology skills and increased employment opportunities in Canada. Project Objectives: This feasibility study project has the following specific objectives: Identify and engage NRC-IRAP eligible companies with local ITA's who are interested to undertake a feasibility study of metal additive manufacturing. Preparation of a template task for a description of a standard research of a coupon demonstration unit to demonstrate Laser Additive Manufacturing process to suit their application; Identify the companies' common needs for researching the process in design, manufacturing of selected tools to apply Metal Additive Manufacturing technology for their required specific purposes; Meet selected companies to outline the application design – supply material for test coupons or part – deposition of Laser Additive Manufacturing to demonstrate its microstructure material, hardness and mechanical strength for component and, To increase the confidence and awareness of manufacturing companies in applying Metal Additive Manufacturing for specific tooling. Small to medium-sized enterprises (SMEs) will form the majority of the businesses participating in the program. Under the current challenging economic conditions and with strong competition from low-cost countries, SMEs are interested in adapting advanced manufacturing technologies to improve their competitiveness. NRC-IRAP's financial support will enable Canada Makes to work with these SMEs to organize projects and build the momentum in Canada allowing companies to see the advantages of Additive Manufacturing technologies improving the performance of our manufacturers to compete globally. Through the delivery of this program Canada Makes, it became apparent that many of the same questions and concerns were shared by new comers to this technology. Therefore Canada Makes developed two interactive guides, the Metal Additive Process Guide & Metal Additive Design Guide designed to assist businesses new to metal AM wanting to learn about process and designing for metal AM (DfAM). The Guides are easy to use, interactive and offer useful information for the adoption of this technology. Access is free although we request that you register. Thank you and enjoy! http://canadamakes.ca/funding/program-for-metal-additive-technology-demonstration-projects/

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