Proto Labs Is A Strong Play In Next-Generation Manufacturing

Summary

• Proto Labs remains at the forefront of major technological trends.
• The company is one of the few companies successfully capitalizing on emerging manufacturing technologies like 3D printing.
• However, it still faces coronavirus-related disruptions and technological risks.

The manufacturing industry has been heavily impacted by COVID-19. Traditional manufacturing has been particularly hard hit as a result of production and supply chain disruptions. Next-generation manufacturer Proto Labs, however, has fared far better in the current environment.

Proto Labs (NYSE:PRLB) is at the forefront of numerous emerging manufacturing sectors like digital manufacturing, 3D printing and CNC machining. The company's presence in newer manufacturing segments has made it far more adaptable in COVID-19 landscape. Proto Labs is increasingly well-positioned to become a dominant force in the future manufacturing landscape.

Proto Labs' valuation is starting to reach all-time highs despite COVID-19.

Source: YCharts

Leading Digital Manufacturing

Proto Labs continues to lead the rapidly growing digital manufacturing industry. The company is successfully capitalizing on digital technologies like e-commerce to expand its market. What's more, Proto Labs' digital manufacturing model is far more resilient in the current environment as it is less impacted by social distancing measures.

Proto Labs 2.0 should further cement Proto Labs as a leader in industry 4.0. Proto Labs 2.0 is expected to bolster the company's e-commerce platform and backend systems. The company's efforts to improve its overall infrastructure should allow it to come out of the pandemic in a far better position than traditional manufacturers.

As the world continues to digitize, Proto Labs will be in a prime position to cater to customer needs. Proto Labs' growing digital platform and highly versatile manufacturing technology should allow the company to adapt to a rapidly changing landscape far better than its competitors.

Successfully Capitalizing on Disruptive Technologies

Proto Labs is involved in some of the most promising manufacturing technologies. The company's investments into 3D printing, in particular, sets it apart from the vast majority of other manufacturing companies. Moreover, other 3D printing companies like Stratasys (SSYS) and 3D Systems (

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.