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What do the next 5 years look like for global manufacturing?

Supply chain risk and mitigation will always be a key concern in manufacturing. While most organisations have some form of preparedness in place, no one could have imagined the scale of turmoil and disruption recently unleashed on the global supply chain.

The use of 3D printing, or additive manufacturing, has enabled companies to shift sourcing of parts from remote locations like China to on-site production facilities. Many companies worked quickly to leverage their additive manufacturing capacity to supply personal protective equipment (PPE) and medical components as demand spiked and supply dwindled.

Meanwhile, other manufacturers that previously viewed 3D printing as a useful prototyping tool have begun asking what else can be done with additive. If they can produce parts themselves, without relying on global suppliers, they’ll be in a stronger position to get their products to market and address customer demand.

The key question is whether 3D printing will enter the realm of mainstream manufacturing to become a permanent backup, reshaping global manufacturing in the next five years.   

Pitfalls of Current Supply Chains 

The COVID-19 pandemic is wreaking havoc not only on the world’s health but also on global supply chains. It has shone a light on many of the challenges with classic just-in-time manufacturing as well as highlighted the challenge faced by the distance that we typically see between production and consumption. 

Most of the world’s producing nations are in Asia and most of the consuming nations are not only Asian but obviously include the rest of the world. This geographic distance alone can make supply chains fragile. There is a huge component of agility that is integral to the just-in-time model, but when you have distribution and significant physical distance as part of the supply chain, it becomes quite challenging to have that model really work. Additive technologies inherent fixture-less, tool-less production process make them naturally agile and responsive to supply needs.

It is not just the ‘global’ nature of supply chains that is making them susceptible to disruption, it is also the concentration of technologies in specific locations such as China. Critical capabilities locked into fewer and fewer companies is a major factor which can lead to disruption. But moving supply chains needs to make economic sense to be successful. 

Addressing Supply Chain Shortfalls with Additive Manufacturing

We see a significant increase in the use of additive manufacturing to cover the gaps that COVID-19 created in existing supply chains. By installing equipment that is highly flexible, manufacturers can begin to defray some of these supply chain risks, perhaps by allowing parts to be produced locally, or by printing jigs, fixtures and tooling to keep factories operating at the scales they’re used to without prolonged lead times.

The latest 3D printing platform innovations including hardware, software and materials are coming together to help companies manufacture in new ways – while removing the historical barriers. Additive manufacturing at scale is now starting to transform manufacturing across sectors including aerospace, automotive, contract manufacturing services and biomedical. Essentium’s research shows that two-thirds of companies reported they have more than doubled their use of industrial-scale AM over the past 12 months. The shift from additive prototyping to additive production has begun.

COVID-19 forced many tremendously inventive manufacturers to think outside the box. This reshuffling of the deck will unleash many new technologies, processes, and methods to apply them to supply chain issues. 

Lasting Shifts in Supply Chains

In deciding where to produce a product, a manufacturer’s primary concern is the local infrastructure and supply base. A strong localised manufacturing base improves costs, time-to-market, and often provides other sourcing options. 

An additive enabled supply chain can respond quickly, flexibly, but often in unexpected ways. This becomes the new normal for engineers familiar with additive manufacturing. Here are some examples of how additive manufacturing is being deployed:

Many manufacturers are working furiously to qualify new suppliers around the world and source the parts they need at the lowest price. But, with additive manufacturing, new opportunities exist for many types of components where manufacturers may no longer need to source those parts from distant suppliers. Instead, they can simply search the availability of materials and then begin the process of building those parts in-house. Not only will they reduce the time and money it once took to purchase and transport parts, they will greatly speed time-to-market, which is crucial in these unprecedented times.

We are likely to see a lasting shift in the way manufacturing operates. The virus is bringing people together to embrace digital technology - like additive manufacturing - to overcome challenges such as sourcing parts currently produced in offshore locations. 

- The author, Erik Gjovik is Chief Product Officer and Co-founder of Essentium.

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