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December - 2014 issue

Era of 3D Printing

By CR Team

3D printing is ushering in a new era. As applications of the technology expand and prices drop, the first big implication is that more goods will be manufactured at or close to their point of purchase or consumption. This might even mean household-level production of some things. Short of that, many goods that have relied on the scale efficiencies of large, centralized plants will be produced locally. Even if the per-unit production cost is higher, it will be more than offset by the elimination of shipping and of buffer inventories. Whereas cars today are made by just a few hundred factories around the world, they might one day be made in every metropolitan area. Parts could be made at dealerships and repair shops, and assembly plants could eliminate the need for supply chain management by making components as needed.
Another implication is that goods will be infinitely more customized, because altering them would not require retooling; only tweaking the instructions in the software. Creativity in meeting individuals’ needs will come to the fore, just as quality control did in the age of rolling out sameness. These first-order implications will cause businesses all along the supply, manufacturing, and retailing chains to rethink their strategies and operations. And a second-order implication will have even greater impact. As 3D printing takes hold, the factors that have made China the workshop of the world will lose much of their force.