Although 3D printing has captured imaginations everywhere and is moving toward the mainstream in making plastic components, it has yet to take off in mass production of metal parts. However, we believe this is changing rapidly. We expect metals 3D printing to disrupt many existing manufacturing processes and to become a fundamental part of how metal products are made in the digital age.
The technology — also known as additive manufacturing (AM) — has formidable potential across the manufacturing landscape. It enables products to be made on demand, at point-of-use, and with very efficient material usage. The metals share of the market is very small now, but it is expected to grow at 20 percent compounded annually, almost twice as fast as more mature plastics AM, and faster than traditional manufacturing.
While AM’s primary use to date is in rapid prototyping, tooling, and production of replacement parts, leading practitioners are shifting their ideas about the technique. Increasingly, they see it not only as a substitute for traditional production techniques but also as a way of rethinking the supply chain to unlock substantial value. They also see that AM can scale cost-efficiently to serve high-volume needs.
Today there are three primary metals AM technologies: powder bed; deposition; and binder jet, all at different stages of maturity and capability. PwC sees a distinct metals AM supply chain taking shape: material suppliers developing unique powder alloys; machine manufacturers; software suppliers; services businesses to help industry learn how to gain value from AM; and AM machine operators.
Acknowledging AM’s well-known benefits to the supply chain, PwC emphasizes its potential to optimize functional design and leverage materials properties. For example, AM can sharply reduce component weight and cut parts counts — improving the performance of the systems into which AM-made parts are assembled.
To date, these types of value propositions in metals have involved complex, low-volume parts, but PwC’s analysis suggests that the same economic arguments can apply to simple metal parts that have relatively low design costs and higher volumes. The economics of AM start to look far more favorable when the technique is viewed as more than an isolated production stage. To help manufacturing business leaders identify where metals AM offers them the greatest economic value, PwC pinpoints five value propositions, from the high impact of system value and performance (entailing the redesign of an entire production system) to the downstream impacts on the service and aftermarket supply chains.
Recognizing that metals AM is still relatively expensive, PwC breaks down AM costs compared with those of traditional manufacturing for two types of aerospace parts, and flags some of the strategic questions that business leaders must ask themselves if they are to understand how to integrate AM into their supply chains.
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