Diversification (2)

Test case integrates R&D, OEMs, contractors and subs to efficiently employ AM processes, expand markets and increase resiliency

 

Golden, CO –ADAPT, the Alliance for the Development of Additive Processing Technologies, a research consortium focused on developing technologies to accelerate the certification and qualification of 3D printed metal parts, in cooperation with the University of Utah, has received funding from the U.S. Department of Defense for the first phase of the Mountain West Advanced Manufacturer’s Network (MWAMN). From the approximately $2.7 million in funding, roughly $1.5 million will go to Colorado School of Mines and ADAPT.

 

“This program creates a new manufacturing platform to advance economic and workforce resilience in response to changes in defense spending,” said ADAPT Technical Director Aaron Stebner. “Enabling manufacturers to efficiently deploy additive manufacturing processes helps diversify their product offerings, expand into non-defense markets, and provide resilient employment and value to their communities and the economy independent of defense spending.”

 

The MWAMN leverages ADAPT’s existing data infrastructure built with funding from a State of Colorado Office of Economic Development and International Trade Advanced Industries Accelerator grant and funds from founding member companies. This data infrastructure will help inform product and material change-overs; create new innovations and diversification; accelerate product development; and reduce reliance on the defense industry while improving the ability respond to new Department of Defense requirements.

 

Other network members include Citrine Informatics; Carnegie Mellon’s NextManufacturing Center; and the NIST Manufacturing Extension Partnership organizations from Colorado and Utah, Manufacturer’s Edge and the MEP Center at The University of Utah.

 

“Additive manufacturing holds the promise of enabling manufacturers to quickly adapt to changing market needs compared to traditional manufacturing methods,” noted Heidi Hostetter, ADAPT industry board chair. “Today, building new parts or switching materials with this technology takes too long. MWAMN is focused on radically shortening that time, lowering costs, and reducing the negative economic impact on companies and communities when defense programs and spending changes.”

 

Together, members will network past, present, and future defense-supported metals manufacturers directly with advanced manufacturing research and development centers via a centralized, artificially intelligent database. This platform will enable defense manufacturing contractors to efficiently use AM processes to shorten product development cycles, expand product mix, enter new non-defense markets, increasing economic diversification of their businesses along with economic and workforce resilience.

 

About ADAPT

The Alliance for the Development of Additive Processing Technologies (ADAPT) is a research and development organization dedicated to the creation of next-generation data informatics and advanced characterization technologies for additive manufacturing technologies. ADAPT uses these tools to help industry and government qualify, standardize, assess, and optimize advanced manufacturing processes and parts. Several levels of membership to the ADAPT consortium are available. Founding industry members include Ball Aerospace & Technologies Corp., Faustson Tool, Lockheed Martin, Citrine Informatics. Grant funding from the Colorado Office of Economic Development & International Trade (OEDIT) was provided to Manufacturer’s Edge and The National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership. For more information, find ADAPT on the web, LinkedIn,Facebook, or Twitter.

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Firm’s Research Concludes That Optimizing for Diversification Outperforms Traditional Risk ApproachGravity Investments (Gravity), a premier financial engineering firm responsible for the Gsphere visual asset allocation platform, today issued a paper on portfolio optimization and the comparative value of optimizing specifically for diversification.The paper, entitled How True Diversification™ Preserves Capital, concluded that optimizing portfolios for diversification provides a positive impact to bear market returns at entirely no cost to bull market returns, resulting in dramatically better performance across a full market cycle. Diversification, not risk, is thus warranted according to Gravity as the focus of portfolio optimization for asset allocation.“We’ve known for some time that True Diversification is a primary enabler of achieving higher returns,” said James Damschroder, Founder of Gravity Investments and the firm’s chief financial engineer. “Now we know precisely why. With True Diversification, there really is such a thing as a free lunch.”Gravity conducted research on 95 actual Registered Investment Advisor portfolios in place between the years 2002 and 2009. The firm examined the portfolios across three time periods--bull market, bear market, and the full cycle, grading each portfolio--using Gravity’s proprietary diversification measurement.IPC, Gravity’s patented measurement of diversification, produces the weighted average of all unique correlations in a portfolio and provides a measurement of diversification specifically tuned to systematic risk. Gravity calls this advancement in the science of diversification measurement and optimization “True Diversification”.The results of Gravity’s research indicated that every extra percent of IPC was responsible for protecting 98 basis points of capital in a down market. By comparison, similar changes in standard deviation showed a much weaker relationship to returns in both bull and bear markets.“Based on these results, it’s reasonable to infer that the traditional practice of using a Markowitz efficient frontier as a menu of portfolios may be of dubious merit,” says Damschroder. “It’s hard to argue the logic of True Diversification when it protects capital in down markets without sacrificing gains in up markets.”Gravity’s innovative approach to portfolio construction will benefit virtually every sponsor of investment product, including broker/dealers, RIAs, insurance companies, mutual fund companies, hedge funds, pension plans, bank trust groups, 401(k) providers, fund consultants, family offices, foundations, and endowments.
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