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Home » Insights

Value of Additive Manufacturing: Which Top Business Drivers does AM Unlock ?

It is time to dive into the tangible business benefits Additive Manufacturing offers
Insights By Rajeev KulkarniAugust 20, 20245 Mins Read
Which Business Drivers does Additive Manufacturing unlock?
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In the earlier article we focussed on key technical value propositions enabled by Additive Manufacturing. In this article , we will focus on the business drivers these value propositions support.

With the differentiated capabilities and technical value propositions of Additive Manufacturing outlined in our prior column, it’s time to dive into the tangible business benefits this technology offers. These benefits are the real-world advantages that convince decision-makers to embrace Additive Manufacturing. Here are the key ones that I have seen being enabled across the hundreds of applications I have worked upon during the past few decades. 

Decentralized Manufacturing with Additive Manufacturing

Mass Customization allows product developers to produce unique, personalized products without the need for large-scale, centralized manufacturing facilities. This capability makes it feasible to produce items on demand at local or regional sites, rather than relying on distant factories and extensive supply chains. In the healthcare industry, hospitals use Additive Manufacturing to print customized medical devices or implants right on-site, tailored to individual patients’ needs. This reduces the reliance on centralized manufacturing and long supply chains, making healthcare delivery more efficient and responsive.

Reduction in Inventory

Traditional manufacturing often requires large inventories of parts to meet demand, leading to significant storage costs and potential wastage. Additive Manufacturing enables on-demand production, allowing businesses to maintain minimal stock. This is particularly advantageous in industries with complex and variable demand, such as aerospace. Airlines use Additive Manufacturing to print specific components as required, at remote sites, eliminating the need for extensive warehousing and reducing capital tied up in inventory.

Low Volume Production

Additive Manufacturingis ideally suited for low-volume production runs, making it a cost-effective solution for niche markets or bespoke products. Traditional manufacturing processes like injection molding require high volumes to justify the cost of tooling. Additive Manufacturing, however, eliminates this barrier. For instance, the fashion industry can produce limited-edition jewelry pieces with complex designs that would be prohibitively expensive to manufacture using traditional methods.

Bridge Manufacturing

Bridge manufacturing is the use of AM to produce parts until traditional manufacturing processes are fully operational. This ensures a seamless transition from prototype to full-scale production. In the consumer electronics industry, companies can use AM to produce initial batches of new products, allowing them to launch faster and capture market share while finalizing traditional manufacturing setups. This approach minimizes time-to-market and maximizes early revenue opportunities. This approach is also increasingly being used in automotive manufacturing. 

Agile Manufacturing Operations

Agility in manufacturing is critical for responding to market changes and customer demands swiftly. AM allows for rapid design iterations and the production of complex geometries without retooling. This flexibility is invaluable in sectors like automotive and aerospace, where manufacturers must adapt to new regulations or evolving performance standards quickly. For example, an automotive company can swiftly redesign and print optimized engine parts to meet new emission standards without the delays associated with traditional manufacturing methods.

Time to Market

Reducing time to market is a significant competitive advantage. AM accelerates the product development cycle by enabling rapid prototyping and testing without the need for expensive tooling. In the consumer electronics industry, companies can quickly iterate on designs, produce functional prototypes, and move to market faster than competitors relying on traditional methods. This speed not only improves profitability but also ensures that companies remain at the forefront of innovation.

Cost Efficiency 

It improves cost efficiency through several key advantages. It eliminates the need for expensive tooling and reduces material waste by using only the material needed for each part, which can be particularly beneficial for high-cost materials. AM’s automated processes lower labor costs and streamline operations, while its ability to produce parts on-demand reduces inventory and storage expenses. By integrating multiple manufacturing steps and enabling localized production, AM further cuts transportation and logistics costs. Overall, it offers significant cost savings and operational efficiencies across various aspects of manufacturing.

Sustainability 

By building objects layer by layer, AM minimizes material waste compared to traditional subtractive methods and allows for the recycling of unused materials. For example, aircraft manufacturer’s use of AM for producing titanium aircraft components demonstrates significant environmental benefits. By using EBM to manufacture titanium parts, they have achieved a 50% reduction in material waste compared to traditional machining processes.

Furthermore, AM’s localized approach cuts down on transportation needs, reducing carbon emissions and supporting more sustainable supply chains. Additionally, AM enables the creation of highly optimized, durable parts that extend product life and reduce the need for replacements. With its potential to use sustainable materials and streamline packaging, AM is making significant strides toward a greener, more resource-efficient future in manufacturing.

Enable New Business Models Not Possible Without Additive Manufacturing

AM opens the door to innovative business models that were previously impractical or impossible. For instance, the concept of ‘design on demand’ platforms allows customers to order custom-designed products that are printed and shipped directly to them. In the medical field, companies can offer personalized prosthetics and orthotics that precisely fit individual patients, improving comfort and functionality. In the fashion industry, designers can create bespoke clothing and accessories tailored to individual customer preferences, revolutionizing the shopping experience. All these are cost prohibitive without the use of AM. 

In many cases a multiple of these business drivers are enabled making AM not just a technological innovation, but also a catalyst for transformative business practices. By understanding and leveraging the technical value propositions, companies across various industries can unlock significant business benefits. Decentralized manufacturing, reduction in inventory, low volume production, bridge manufacturing, agile operations, reduced time to market, and enabling new business models are just a few of the powerful drivers that make AM an essential tool for modern product development and manufacturing. 

3DPrinting additive manufacturing rajeev kulkarni
Rajeev Kulkarni

Rajeev Kulkarni is a distinguished entrepreneur and executive with three decades of leadership experience in 3D Printing, business strategy, innovation, and entrepreneurship. He is the Chief Strategy & Marketing Officer at Axtra3D®, where he leads strategic initiatives, revenue enhancement, and global outreach across North America, EMEA, and Asia. Rajeev also serves as the Board President at Caracol® in Milan, Italy, and as a Board Member of Ackuretta® in Taiwan, guiding them on strategic growth and corporate investment initiatives. Rajeev's journey in 3D Printing began in the early '90s with 3D Systems, where he was instrumental in inventing multiple 3D Printing platforms and advancing the industry's growth. His contributions have earned him numerous US and international patents and several "Outstanding Innovation of the Year" awards. Notably, he was part of the team that invented Invisalign and applied 3D Printing to produce hearing aids, dental prosthetics, and implants. At 3D Systems®, he led global R&D, established the desktop 3D Printer business, and managed mergers & acquisitions, successfully executing over 15 deals totaling more than $750 million. Rajeev co-founded the Inception Micro Angel Fund and the Charlotte Angels, investing in over 20 technology startups. He also serves on the North Carolina Governor’s Entrepreneurship Council and has been recognized with the "40-Under-40" award from the Charlotte Business Journal in 2009. Rajeev holds multiple bachelor’s and master’s degrees in engineering, computer science, and marketing.

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