Understanding the strategic consequences of additive Manufacturing ...

Prof. Göran Roos

Key Enabling technologies are technology domains that are knowledge intensive and associated with high R&D intensity, rapid innovation cycles, high capital expenditure, highlyhighly-skilled employment, and that not only underpin most industrial activities across sectors but that also form industrial sectors in their own right. They include in my definition: Information and Communication Technologies, Nanotechnology, MicroMicro- and NanoNano-electronics, Industrial biotechnology, Photonics, Advanced materials, Advanced manufacturing Technologies, and Production Systems for High Cost Operating Environments.

© Copyright Göran Roos 2014



Implication by the fact that it can produce almost anything. Implications due to it requiring less assembly lines [solely needed for complex systems assemblies] less complex factories [apart from the production and distribution of the nano nano--powder and the assembly of the printer itself] Implications by its intertwining with advancements in material sciences, scanner technology and CAD software with internet commerce and online collaboration, crowd--sourcing and crowdcrowd crowd-funding. Implications it will be the digital designs and digital specifications and not the products themselves that will move around the world and the only physical movement will be the nano nano--powder and the additive manufacturing units themselves. The savings that will accrue in labour, tooling, assembly, shipping, inventory, working capital is posing a major threat for countries that have emphasised lowlow-cost traditional manufacturing. Instead there will be a growth in all the new service related activities that will take place in digital space e.g. Digital testing, digital simulation, digital file compression, etc. All requiring highly educated individuals and sophisticated tool development where the labour cost component in the service is small as a percentage of the value provided and hence can be executed in highhigh-cost countries.


Share of patents within Advanced Manufacturing Technologies including additive manufacturing Manufacture of basic iron and steel and of ferro-alloys Manufacture of basic precious/non-ferrous metals Manufacture of other special-purpose machinery Manufacture of other porcelain and ceramic products Manufacture of abrasive/non-metallic mineral products Manufacture of beverages R&D on nanotechnology Manufacture of basic pharmaceutical products Manufacture of electronic components and boards Manufacture of glass and glass products R&D on biotechnology Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms Manufacture of refined petroleum products Electric power generation, transmission and distribution Other R&D on natural sciences and engineering Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks Manufacture of military fighting vehicles Manufacture of optical instruments/photographic equipment Manufacture of other general-purpose machinery Higher education Manufacture of plastics products Architectural/engineering activities, technical consultancy Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus Manufacture of computers and peripheral equipment Manufacture of other chemical products Installation of industrial machinery and equipment Manufacture of consumer electronics Technical testing and analysis Manufacture of paints, varnishes, coatings, printing ink Manufacture of man-made fibres Manufacture of general-purpose machinery Manufacture of rubber products Preparation and spinning of textile Manufacture of other electrical equipment Manufacture of other food products Hospital activities © Copyright Göran Roos Manufacture of 2014 articles of paper and paperboard

20.5% 16.6% 11.9% 10.8% 10.3% 9.6% 9.3% 8.7% 8.7% 8.5% 8.0% 8.0% 7.6% 7.6% 7.0% 6.9% 6.7% 6.6% 6.2% 6.2% 5.8% 5.8% 5.3%

5.1% 4.8% 4.6% 4.5% 4.4% 4.3% 4.0% 3.8% 3.6% 3.4% 2.9% 2.8% 2.7% 2.6%

Other manufacturing: Other manufacturing includes a range of lowlow-tech, bespoke manufactures such as toys; these are likely to be one of the earliest markets for additive manufacturing. Metals and building materials: Potential for significant disruption from additive manufacturing. However, additive manufacturing may not provide the scale of production required for some industrial and construction processes. Textiles, clothing and leather: Likely to be heavily disrupted by additive manufacturing, with design, logistics and retail processes potentially transformed. Rubber and plastics: High likelihood of disruption, especially for bespoke shaped plastics. Plastics are also likely to be the key material for additive manufacturing, which may prompt innovation in development of plastics. Pharmaceuticals: Significant potential for onon-demand manufacture of drugs in hospitals, although much will depend on technology. Machinery: 3D printing is likely to play a major role in providing bespoke and onon-demand machinery. Furniture: additive manufacturing should play a major role in rere-shaping furniture markets, with designs and logistics heavily disrupted. Food, drink and tobacco: Unlikely to move wholly to additive manufacturing, although some components (including packaging) may be additively manufactured within supply chains. Computers, electronics and electrical equipment: Some potential for disruption from additive manufacturing, although issues of assembly and precision may limit uptake. Ships and aerospace: Large scale building projects make additive manufacturing unlikely, although may be involved in the supply chain. Cars and other vehicles: additive manufacturing is unlikely to remove assembly lines or end mass production, but may play a role in manufacture of components. in the supply chain.


Will enable the centralisation of manufacturing e.g. the tool production for the plant by the plant at the plant – reducing the need for tool makers and simplifying and concentrating the value chain; the production of spare parts by the spare part user on the spare part user’s location and when the spare part user need it hence simplifying and concentrating the value chain; etc. Benefit: Little to no production waste, short changeover times, and no tooling changes or direct labour required. Will initially impact B2B manufacturers with low production rate or makemake to--order assembly lines and manufacturers with products that have to intricate internal structures.


60–80% value increase per 3D60– 3D-printed product and 35– 35–60% cost savings to consumers plus 10% added value from customization from consumer use 40––55% cost savings to buyers of 3D40 3D-printed products from direct product manufacturing 30% production cost reduction using superior 3D3D-printed moulds from tools and mould manufacturing.


Design – Additive manufacturing will likely create a global market for digital designs, both for generic blueprints and bespoke design services; Bespoke manufacturing services – Additive manufacturing may well place increased emphasis on the service aspect of manufacturing, with retail and production being fused into a bespoke service; Home Additive Manufacturing – Some Additive manufacturing is likely to take place within the home, while some will take place within shops or factories; these domestic and commercial markets will look very different; Manufacture of Additive Manufacturing Units– Units– Producing and servicing Additive manufacturing units themselves should be a big money industry; and Materials – Creating and sourcing materials for use in Additive manufacturing units will also be a significant market.


Benefit in your existing operation from this technology Change what you do to benefit from this technology Change what you do to avoid being negatively impacted by this technology Enter one of the new value chains created by this technology
