MIT defines additive manufacturing—often referred to as 3-D printing—as the process of creating an object by building it one layer at a time. Additive manufacturing has risen to the forefront of discussions in the manufacturing world over the last several decades. Many types of materials can be used in additive manufacturing, including polymers, metals, concrete, plastics, ceramics, gels, and even biological materials. This innovative technology has been used to create a wide range of products, including furniture, airplane parts, hearing aids, medical prosthetics, and even human organs (yes, organs!).
While you may not be in the business of 3-D printing organs, your company may still stand to benefit from the ever-evolving potential of additive manufacturing. There are many advantages associated with the adoption of additive manufacturing technology, such as increased customizability, cost-saving potential, simplified supply chains, the ability to create lightweight products, and sustainability. However, the cost of additive manufacturing equipment has long been an issue for small and medium-sized manufacturers. Let’s take a look at some of the benefits of adopting additive manufacturing, as well as the problem of affordability facing many small and medium-sized businesses.
Benefits of Additive Manufacturing (AM)
- With AM, designs can be sent directly to 3-D printers for production, cutting out several steps along the supply chain. This can significantly reduce time spent on product development and production.
- AM can reduce operating costs by accelerating the design process, decreasing labor costs, and cutting down on wasted materials.
- With AM, companies are able to produce only the amount of product that they need, reducing waste and improving sustainability.
- With AM, products can be manufactured in small batches, which cannot be done as cost-effectively through traditional manufacturing methods.
- Products become easier to customize (for example, medical prosthetics) when produced in small batches using AM.
- AM gives manufacturers the ability to create products with different materials on the inside and the outside, something that is difficult to accomplish in conventional manufacturing.
- AM allows companies to create lightweight products, an especially useful capability for the aerospace and automobile industries.
The Downside: Cost
Despite its potential benefits, additive manufacturing is not without its flaws and challenges. One of the most significant issues with additive manufacturing is its high cost, a factor that has long acted as a barrier to entry for small and medium-sized manufacturing businesses. Not only are 3-D printing machines typically very expensive, but the raw materials required for 3-D printing can also be highly specific and costly. Staff also need to be trained on the new technology, requiring an additional investment of resources. However, over the last several years, additive manufacturing equipment has become significantly more affordable. Additionally, the cost savings associated with additive manufacturing can help small businesses achieve a high return on investment, potentially making up for high startup costs. In the end, the potential benefit of adopting additive manufacturing depends largely on a company’s individual goals and products. Businesses with specific goals, such as creating lightweight or highly customized products, likely stand to benefit the most from investing in 3-D printing technology.
Conclusion
Additive manufacturing isn’t for every business. Certain manufacturers will benefit more than others from investment in AM. The cost of equipment and materials can be a barrier for smaller companies, though the technology is becoming more affordable with time. While you decide whether additive manufacturing is a worthwhile investment for your business, you can depend on RBT CPAs to support all of your tax, audit, accounting, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.