NEW YORK (TheStreet) -- GE (GE) is reportedly preparing to adopt 3D printing in an effort to speed up repairs and cut manufacturing costs. Shares of GE rose 0.8% to $27.83 on Thursday following a report in the Financial Times.
According to the newspaper, GE and other industrials such as Siemens and EADS are planning to use 3D printing in part to hold down costs. By 2016, GE aims to begin mass producing fuel nozzles for the Leap engine using 3D printing for use in the Boeing (BA) 747 Max and Airbus A320neo. The 3D-printed fuel nozzles are much lighter than traditional parts, and are said to last five times as long.
Current challenges GE and other companies face when making the switch to 3D-printed parts is inventory costs as printing parts takes longer than traditional methods, making more difficult to efficiently produce large quantities of parts.
TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL ELECTRIC CO (GE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."