Visit the 3 D Opportunity collection Want to learn more about 3 D printing? Register for our upcoming course “ A pint’s a pound the world around. A gallon weighs 8 pounds.” 1 But what does it cost to fly it? Put three gallons on an airplane flying international routes, and the airline might tell you 0,000 per year.2 Leading manufacturers in aerospace and other industries face a daunting challenge. To remain competitive, they must constantly look for ways to deliver superior value to their customers. Cutting costs and competing on price have their place, but who wouldn’t prefer delivering superior value with better products and competing on revenue? Truly innovative companies find a way to break the trade-off between better and cheaper and deliver both.3 Additive manufacturing, commonly referred to as 3 D printing, is defined as “a process of joining materials to make objects from 3 D model data, usually layer upon layer, as opposed to subtractive manufacturing methodologies.” Advocates for additive manufacturing ( AM also known as “3 D printing,” view the technology as a strong potential contributor to companies’ quest for excellence.4 In the right context, they see the potential to meet or exceed the direct-cost standards established by more traditional manufacturing methods while simultaneously offering the opportunity to achieve superior supply-chain and product performance. Many senior executives, operations managers, and financial professionals find themselves trying to understand the business case for AM. This should begin with careful consideration of the direct costs that drive AM and traditional production economics and continue with an examination of some of the less direct factors that can add dramatic value for companies and their customers under the right circumstances. Such exploration seems justified. Advancements in AM increasingly enable companies to.
AM and medical devices: A natural fit The medical technology (medtech) industry has been a leader in the use of additive manufacturing ( AM also known as “3 D printing.” In 2012, medical applications accounted for 16.4 percent of the total system-related revenue for the AM market.1 A key reason for this is that AM capabilities align well with the needs of medtech’s medical device segment. For example, the medical device segment serves a broad, geographically distributed population of service providers that in turn serves an even larger end market of health care consumers.2 Many medical devices, such as hearing aids, dental crowns, and surgical implants, are relatively small in size and therefore suitable for the production envelope sizes available through common AM systems.3 Furthermore, these products are value-dense—that is, they combine relatively high value with relatively small physical volume—and the high level of customization available with AM makes this technology well suited for custom-fitting products to individual patients, an important factor in clinical efficacy. AM capabilities align well with the needs of medtech’s medical device segment. The medtech industry is also relatively well funded, which gives it the resources to invest in new technologies. The industry’s 2012 revenue was estimated at 1.6 billion, with an annual expected growth rate of 5.4 percent.4 The 15-year total shareholder return (1998–2012) for medtech companies was 7.8 percent, compared with the Standard & Poor’s 500 average of 5.2 percent.5 But to sustain this performance, the industry needs to continue to deliver innovative solutions to address patient needs.6 Given the strong alignment of AM capabilities with the medical device segment’s needs, and the medtech industry’s ability to support investment in new technologies, it is perhaps no surprise that AM has made substantial.
Download Now