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February 2015<br />

Citi GPS: Global Perspectives & Solutions<br />

55<br />

“Additive manufacturing”, or 3D printing,<br />

requires less cost, time and expertise than<br />

traditional manufacturing techniques<br />

3D printing is able to create complex<br />

geometries and is likely to generate<br />

employment in niche manufacturing<br />

industries<br />

There will be some employment replaced by<br />

3D printing, however it is unlikely to be of<br />

the same magnitude as other technologies<br />

mentioned in this report<br />

3D Printing<br />

3D printing, also known as "additive manufacturing", has been around since the<br />

1980s. Relative to traditional manufacturing techniques such as injection moulding<br />

or CNC milling, 3D printing is slower, has poorer finish quality and is more<br />

expensive per item. However, 3D printing requires less cost, time, and expertise to<br />

create a small number of new items and it obviates the need for expensive retooling<br />

to manufacture new products. It hence has traditionally found value in prototyping<br />

new designs, and for some high-value, low-volume products. The recent<br />

significance of additive manufacturing is found in its democratisation and<br />

automation of manufacturing tasks. 3D printing is able to make direct use of designs<br />

produced using CAD (computer-aided design) software to manufacture even<br />

complex geometries, whereas other manufacturing techniques demand detailed<br />

expertise to specify tooling paths. With an increasingly networked society,<br />

appropriate designs are readily shared or purchased, allowing even non-experts to<br />

begin 3D printing. Hence 3D printing provides a connection from the digital world to<br />

a flexible means of physical manufacturing, reducing the need for manufacturing<br />

workers. 3D printing technologies have recently been extended to produce items in<br />

plastics, glass, paper, ceramics and even metal. Growing demand has led to<br />

dramatic reductions in the size and cost of 3D printing devices, yet furthering their<br />

broad adoption, with printers now available for as little as $500 and able to<br />

comfortably fit on a workbench.<br />

Clearly, 3D printing will play a role in the future of manufacturing. It is capable of<br />

producing products unachievable by any other means, including those that<br />

comprise mixtures of materials. For example, its ability to create complex<br />

geometries is being used by General Electric to print components for its next<br />

generation LEAP engine. As such, it is likely to generate employment in niche<br />

manufacturing industries. It will enable nimble just-in-time manufacturing that is able<br />

to respond quickly to new demand. These demands could be rapidly determined<br />

using big data analysis enabled by the IoT and an increasingly networked society.<br />

Crucially, 3D printing is well suited to personalisation: products will be increasingly<br />

tailored to a customer's preferences, both explicitly stated and inferred from their<br />

data.<br />

This personalisation comes to the fore in medical and dental applications, allowing<br />

components tailored to detailed body measurements. The industry is beginning to<br />

adopt 3D printing for commercial purposes: in particular, 3D printing is core to the<br />

manufacturing process of both Phona, manufacturer of hearing aids, and Align,<br />

manufacturer of Invisalign dental braces. Personalisation is also the driver behind<br />

the nascent industry that is starting to use 3D printing for clothing, such as<br />

Electroloom, who print using composites of synthetic and organic materials. For<br />

example, Continuum offers 3D printed bikinis, in nylon, bespoke to the body shape<br />

and measurements submitted by a customer through their website.<br />

The employment impact of these technologies, however, is unlikely to be of the<br />

same magnitude as others mentioned in this report. In the United States, for<br />

example, manufacturing has already been heavily automated, dropping from 30% of<br />

employment in 1950 to less than 6% today. The jobs that remain often involve a<br />

portfolio of skills, the management of many machines, for which one additional<br />

machine is unlikely to be able to substitute. Nor does the broad distribution of<br />

manufacturing devices, capable of personalisation, suggest a transformational<br />

change in employment. Similar developments were realised with the introduction of<br />

the home (2D) printer and sewing machine, which did not stop people from<br />

purchasing newspapers and clothes, respectively, from traditional suppliers.<br />

© 2015 Citigroup

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