Additive manufacturing has increased its ROI by becoming a go-to work-around for supply chain challenges.
There is no doubt that the COVID-19 pandemic has changed the way many companies do business. From workforce challenges to supply chain woes, the pandemic has made apparent the gaps in our current systems and markets. In fact, according to the Supply Chain Resilience Report, 75 percent of U.S. companies “have experienced external disruptions to their manufacturing supply chain in the past year.”
When the pandemic first hit, many engineering and manufacturing companies quickly discovered how delicate their supply chains actually were. While some organizations continue to struggle, others have found relief by looking to 3D printing.
Most of us are well aware of the capabilities of additive manufacturing. There have been many articles written about the changes that this technology can usher in. But many of us are just as aware of its limitations.
Dale Ford, founder and CEO of Hawk Ridge Systems, a reseller of HP and Markforged 3D printers, as well as SOLIDWORKS and other engineering solutions, said, “I think the pandemic has really shone a light on what additive can do.” Hawk Ridge Systems has seen lots of growth in its 3D printer sales over the past two years, driven by supply chain issues.
“The technology has really been democratized down to a point where people can actually take advantage of it in their processes, whatever that is. The supply chain challenges that we’ve seen clients deal with have really helped them recognize the need to take control of their supply chain. That’s what additive has done for a lot of people—they’ve been able to make things local, and not have to be so dependent on outside sources.”
Solving Supply Chain Woes
Hawk Ridge Systems has several different customers that experienced supply chain challenges. And whether that meant late shipments or missing components, it left companies looking for remedies with other suppliers and/or new methods of manufacturing.
“I would argue that most of our customers that have been impacted definitely have a plan B in place now,” Ford explained. “They’re still looking to their traditional supply chain options, but they’re realizing that they need an alternative now, and they’re making that part of the strategy going forward.”
In this sense, 3D printing hasn’t replaced traditional manufacturing strategies, but it has certainly become a reliable resource in a pinch. Many businesses that wouldn’t have considered additive manufacturing have found the process to be a reliable alternative, if necessary.
“I would also say, we talked to as many companies that don’t have supply chain problems as those that do. Those that haven’t had these issues have actually taken advantage of additive. They were implementing additive strategies before the pandemic or were in the process of doing it during the pandemic, and they just accelerated their investments in 3D printing.”
Ford explores what many have discussed—will 3D printing take over manufacturing? In short, not any time soon, but he sees a hybrid model emerging. He explains that the setup for parts is “pretty significant” when it comes to printing with materials like metal. “The types of metal you can print off of one printer right now is pretty phenomenal, but I think things from the true production perspective are still coming.”
Where Ford sees the real value in 3D printing—metal or otherwise—comes in a supplemental form and this newly realized value in adding a buffer to the supply chain.
“There are things that you can make that enable the manufacturing process. Maybe not necessarily the actual finished good itself. But, on the plastic side of things, on machines like HP’s Multi Jet Fusion (MJF) and applications and materials now available—that’s a production chain. That is a viable solution that is offloading traditional supply chain challenges.”
In-House 3D Printing Helps with More Than Just the Supply Chain
While 3D printing has gone through a couple of technological booms, like when fused deposition modeling (FDM) became available to consumers, the technology itself has always steadily marched forward. The major booms provide exposure, but each year we see improvements in the materials, processes, and even methods of additive manufacturing.
Ford says that he’s had customers supplement their supply chain challenges for injection molded parts with 3D printers. “It gets to volume. So, this isn’t a one size fits all kind of statement or scenario, but depending on the size of the company and the volume that they’re actually trying to put through.… 3D printing is not a panacea for every manufacturing application, but when used for the right part, it certainly can be a very cost-effective solution.”
The world of manufacturing has always aimed to become more efficient, whether that’s working to reduce cycle times or improve the use of space within a facility. Going lean and being efficient is the name of the game when it comes to making money as a manufacturer. But the supply chain has often been just out of the direct control of manufacturers, especially when it comes to smaller organizations. They’ve long had to rely on outside resources to keep their businesses running at full tilt.
Leveraging 3D-printed technologies has allowed some organizations to operate in a more on-demand manner. According to Stratasys, “Transitioning to on-demand manufacturing leads to cost savings by eliminating or significantly reducing inventory requirements.”
On-demand manufacturing has also led to the much more complex notion of made-to-order components and parts. While the world of consumer goods has raved about unique parts that you can print at home—like the new customizable Ford Maverick accessories that the company has put up for free on its website—the world of manufacturing and engineering is already starting to see a shift toward customized component design.
“Some of it is even just protecting intellectual property, too,” Ford explained. “They can take control over … they don’t have to worry about losing their IP via the outsource, because it’s staying in-house. Giving their data out into the wild and not being controlled. That’s another big factor in this whole thing.”
Ford noted that a number of the companies that purchase a 3D printer from Hawk Ridge Systems are looking for a specific purpose to fill for that machine. “They’re often really homed in on one particular thing or two particular parts to cost-justify the initial investment. But what eventually happens is that, based on that initial cost savings, they find new ways to leverage the 3D printer technology with other applications. The savings compound and additive manufacturing finds its way embedded into the organization’s manufacturing process.”
Additive Manufacturing Adds to Traditional Supply Chains
How additive manufacturing will replace traditional manufacturing has been much talked about throughout industrial circles, but the general consensus is that it’s got a ways to go. Similarly, 3D printing isn’t replacing the traditional supply chain, but it is creating space to make things more efficient.
“One of the biggest challenges we’re seeing from a supply chain perspective is human beings—hiring is hard,” Ford explained. “So, when you do hire somebody, you don’t want them spending valuable engineering time navigating where components are going to be sourced or how the design will be produced. It’s a challenge to find the right balance between human engineering and what can be done through technology. Getting that balance right is key to the mix. There’s no doubt that we’re finding ways to better balance the mix of resources where printers can be a perfect fit.”
Filling those gaps is hard to quantify, which is why Hawk Ridge Systems is seeing businesses that already own 3D printers progressing and alleviating supply chain challenges faster. “They don’t really have separate budgets for that. It’s just part of the process. But when you start adding it up, companies realize just how much money they’re spending on fulfilling their manufacturing requirements. It ends up being a really good ROI for these machines when they come in the door … what they can help replace and then, more importantly, get the right focus of people’s time on the right things.”
Is this the next step to 3D printing overshadowing traditional manufacturing and supply chains? What the pandemic has certainly done is shed light on new ways to utilize additive manufacturing technologies throughout organizations. As more companies catch on, 3D printers may become the all-purpose tools that are able to solve various challenges on demand.
