3-D printing is growing rapidly, with the price tags on machines coming down while capabilities improve. Industry insiders prefer to call it “additive manufacturing,” to contrast it with traditional manufacturing, which subtracts unwanted materials through cutting, drilling or other techniques. Industry analyst Wohlers Associates estimates that it is now a three billion dollar industry and growing rapidly.
The underlying economics of the technology offer substantial opportunity, not only in manufacturing but also in retailing, health care and other sectors. This article highlights those opportunities, while a following article will discuss challenges. (Disclosure: my client Stratasys (SYSS) is a major player both in 3-D equipment and in contract manufacturing using the technology.)
The essential economic issue behind 3-D printing is that the price per unit produced is higher than traditional manufacturing, but the tooling cost is zero. For large production runs, traditional manufacturing processes will cost less per unit produced. High up-front tooling costs, however, make traditional manufacturing more expensive for small production runs. Time to produce a 3-D printed product is much shorter than the time to make tooling, though actual production time for each unit is longer than in traditional manufacturing.
Rapid Prototyping was the first big use. Custom production of a prototype often takes a month or two. With 3-D printing, designers have a prototype in their hands in just hours. This is the image in most people’s minds, but 3-D printing has grown far beyond prototyping.
Jigs and fixtures may be the hottest growth area. In most factories, skilled workers make tools that hold a part, or hold a tool that will operate on a part. Construction of the jig or fixture takes meticulous attention to detail, and often trial and error. Any error in the jig will be replicated in the finished product. It is typically faster and easier to have a 3-D printer build the jig or fixture.
Short-production runs are the general category, of which a prototype of a particular example. When a product has a limited market, it may be profitable but not worth expensive tooling. 3-D printing is ideal. It also makes sense when demand is uncertain. Instead of spending money up front for tooling, a business can make a few products on the 3-D printer to test the market. End-of-product-life replacement parts are also a great use of 3-D printing. Plenty of 20-year-old cars are still on the road, and the owners need replacement parts. The manufacturer’s reputation is enhanced—and current sales improved—by servicing those old units.
Mass customization is the ultimate small production run: a product made for just one customer. A good example is Normal, which makes custom ear buds using 3-D printing, each pair optimized for an individual customer. The University of Florida creates plastic brains for student surgeons to practice on. Current technology can vary the density of the material, creating a very genuine feel for the material under the scalpel. In the future, the practice brain will be derived from scans of the actual patient’s brain, with an life-like tumor of just the right size in just the right location.
Non-standard parts is a potential use. For small and mid-sized production runs, standard parts are often specified. For example, a piece of aluminum trim is usually a common size, such as one inch, which is cheaper than an unusual size. With 3-D printing, the design can be optimized without regard to standard sizes.
Production surprises can trigger the need for 3-D printing. On the upside, unanticipated demand can overwhelm the manufacturing process, so 3-D printing can quickly handle the overload. On the downside, when a machine breaks down, the 3-D printer can take over while repairs are being made.
Digital inventory is the final frontier of 3-D printing. Imagine that you need to replace some component that is broken. Now you might go to your local hardware store to look for that part. In the future, you’ll pull up the item number on your computer, find the component that needs to be replaced, and either print it at home or, more likely, order it made at the hardware store. You can pick it up later or have it delivered. Businesses talk about just-in-time inventory, but they often stock “just in case” inventory. 3-D printing allows no inventory at all.
There is tremendous opportunity in 3-D printing. In the next article, some of the challenges will be discussed. Next article: The Economics Of 3-D Printing: Challenges.
