If 3D printinghas

changed the industries

of tomorrow, how can
your organization
getready today?
The trends, sector use cases
and steps to accelerate your 3D
printing journey
Authors
Frank Thewihsen, Europe, Middle East, India and Africa Advisory Supply Chain &
Operations Leader, EY

Stefana Karevska, Advisory Supply Chain & Operations, EY, Germany

Alexandra Czok, Advisory Strategy, EY, US

Chris Pateman-Jones, Global Oil and Gas Sector, EY

Daniel Krauss, Global Advisory Innovation Leader, EY

Contributors
M
ichael Bradbrook, Oceania Advisory Mining & Metals Sector, EY

Paul Brody, US Advisory Technology Sector Strategy Leader, EY

Anne Chen, Global Advisory Innovation, EY

David Christmann, Advisory Strategy, EY, US

Andrew Cosgrove, Global Consumer Products & Retail Sector, EY

Neil Evans, Advisory Power & Utilities Sector, EY, UK

Charles Guo, Advisory Strategy, EY, US

Louise Higgins, Global Advisory Mining & Metals Sector, EY

Emil Hovgaard, Advisory Strategy, EY, Australia

Michael Longo, Global Advisory Automotive Sector, EY

Cale Klesko, Advisory Strategy, EY, Canada

Amber Nelson, Advisory Mining & Metals Sector, EY, Australia

Chekyiu Ng, Advisory Supply Chain & Operations, EY, US

Chinmay Ojha, Global Consumer Products & Retail Sector, EY

Chris Palmer, Advisory Strategy, EY, Canada

Nic Taylor, Advisory Strategy, EY, Australia

Mark Yeomans, Europe, Middle East, India and Africa Advisory Supply Chain &
Operations Strategy Leader, EY

More information and contact details

www.ey.com/3Dprinting
Global3DP@ey.com
 Content
I. Why 3D printing needs to be on the business executive agenda now 3

II. Major trends are shaping the evolution of 3D printing 7

A. Favorable business trends 7

B. Technology improvements 9

C. An active 3D printing market 11

III. Use cases: 3D printing is impacting a variety of industries 13

A. Example applications of 3D printing across industries 14

B. Addressing sector-specific factors will determine 3D printing adoption 15

1. Resource industries (oil and gas and metals and mining) 15

2. Automotive 17

3. Consumer products and retail 19

IV. Accelerating the 3D printing journey 21

A. Organizations need to overcome their lingering concerns to drive faster adoption 21

B. Steps companies need to take to accelerate their 3D printing journey now 22

I Why 3D printing
needs to be on the
business executive
agenda now

Additive manufacturing, better known in Workforce knowledge. The newest generation of designers
and engineers is more knowledgeable about 3DP.
the market as 3D printing (3DP), has been
evolving over the past 30 years. There is Executive interest. The above factors have helped make
executives more open to evaluating how 3DP can be
growing evidence that the advancements embedded into their existing manufacturing processes or
in technology and materials have finally used to create entirely new products and processes. And
brought it beyond the hype stage. Thirty-six the 3DP discussion is moving beyond either/or either
prototyping or finished products. Instead, executives are
percent of companies are already applying or seeing that 3DP enables both design and production to
intend to apply 3DP, according to a recent EY surpass the limitations of traditional manufacturing.
global survey of 900 companies.1 Aerospace, Senior business executives across industries need to put
defense and automotive are the most 3DP on their strategic agendas now, as it can help to realize
mature industries in applying 3DP. However, benefits along a companys entire value chain:

awareness of 3DP and a readiness to leverage P

roduct development: Reduced time-to-market and
it for prototyping, tools, fixtures and even shortened product development design cycles

finished products are increasing in other M

anufacturing: Reduced process time via improved tools
and reduced waste
industries, for several reasons:
E
ngineering and maintenance: More flexible maintenance
Q
uality and speed. As printer speed has increased, quality
processes and reduced maintenance costs
assurance tools embedded into printers enable better
validation, layer by layer, of whether the printed product is Logistics and warehousing: Reduced inventory, logistics
within acceptable tolerances. and logistics costs
Materials availability. There is now a wide variety of Aftermarket: Increased flexibility in delivery of spare parts
materials and material providers, giving companies and reduced costs of spare parts production
more options for producing parts and products. Many
The aim of this paper is to help organizations understand the
manufacturers are collaborating with material suppliers
potential of 3DP and the steps required to take action toward,
to create their own variations of materials in order to
and fully benefit from, the technology. The framework of our
meet their specific requirements or increase quality and
discussion is represented in Figure 1.
throughput.

1
2016 EY global 3D printing survey

3 | 3D Printing Report
 transformation
Many industries
3D printing diagnostics

awareness
have moved
beyond
leveraging 3DP
journey in experiments
and will be
issues
approaching an
sector specic inflection point
within the next
horizontal
five years, where
use cases executing on 3DP
is industrialized
markets into the value
technology
chain.

business Gartner Hype Cycle for 3D

Printing, 2016, 19 July
trends 2016, G00307807

Figure 1: 3D printing discussion framework

3D Printing Report | 4
II Major trends
are shaping the
evolution of 3D
printing

A Favorable business trends

Several trends in the business world have

accelerated 3DP onto executive agendas.
About one-quarter of global companies 3D printing technology is
already use 3DP, with another 12% one of greatest innovations
considering it.2 ever, and it is turning into
The key business trends framing the 3DP evolution are as reality with atremendous
follows:
number of new opportuni-
Individualization customer co-creation. There is a
large push in the modern economy for the personalization ties and challenges.
of manufactured products tailored to consumer needs.
Manufacturers have responded by embracing 3DP and
Frank Thewihsen, EMEIA Advisory Supply
in order To explore opportunities for exploiting 3DP, IT
Chain & Operations Leader, EY
leaders must determine whether the organization has the
need or opportunity to shorten the supply chain and reduce
inventory by printing parts prior to assembly or close to the
point of need.3

2
2016 EY global 3D printing survey
3
Reference from 3D Printing Opportunities and Uses Primer for 2016, Gartner, 21 January 2016, G00293070. For more information see the
Gartner report

5 | 3D Printing Report
 Democratization innovation and development from the Sustainability the circular economy. There is a global
masses. 3DP makes it easier for individuals or collaborative movement toward sustainability for the home and also for
teams to design or manufacture end products and reduces corporations of all sizes. 3DP reduces transport costs when
barriers to innovation. The product maker, who may be the 3D printer is placed close to the manufacturing line.
stymied in a traditional bureaucratic setting with difficult There are also operating cost efficiencies when airplanes
requisition processes and long logistical wait times, would are built with lighter materials. That said, as early adopters
now have options to make products quicker. For intra- move to the use of 3DP, there are factors often missing
company collaboration, design teams can fax their parts from the cost-benefit analysis: for instance, power and
across the world to work with tangible products. When the heat are critical for 3DP processes; also, the benefit of
needed engineering or design resources are not co-located easily iterating on designs may increase the amount of
or even connected virtually, companies have turned to unrecyclable waste. As a result, the environmental benefits
crowdsourcing. An example of crowdsourcing is the 3D of 3DP do not come without care and planning, but they
Printing Design Quest challenge that GE and GrabCAD are achievable. Airbus, for example, appears to be a very
launched in June of 2014. To inspire designers from around good steward of the environment, as its 3DP processes are
the world, the companies challenged the public to redesign reported to have only 5% waste.5
a metal jet engine bracket to make it 30% lighter while
preserving its integrity and mechanical properties.4 The
contest, which is an example of crowdsourcing innovation
made viable by 3DP, was won by an Indonesian engineer.

4
Jet Engine Bracket from Indonesia Wins 3D Printing Challenge, GE Reports, 2013 by Thomas Kellner
5
Factory of the future - New ways of manufacturing, Airbus Group, 2016 by lvaro Friera, Favila Roces, Hugo Alloy

3D Printing Report | 6
 B Technology improvements

The range of materials that can now be used Lightweight materials. Honeycombing, another 3DP
method, allows especially lightweight parts to be printed.
is vast, including plastics, porcelain, ceramics, It is possible to create hollow parts or parts with an inner
stainless steel, carbon, graphene, titanium chamber that are connected in a fashion similar to the inside
and other metals. This list is not exhaustive of a bees nest. If companies or individuals are outsourcing
any 3D prints, one big question will be whether the finished
new variations on materials or alloys are made
product should be solid or not. Some cosmetic pieces may
every day. For parts that a company deems not need the inside to be complete, and hollowed out parts
suitable for 3DP, there is a reduction of the reduce material costs. But the effect on weight could be the
supplier base, as the components no longer most valuable impact for some. Both Boeing and Airbus use
3D-printed materials to reduce the weight of their aircrafts.
need to be sourced. There are four different The most dramatic result of honeycombing is metallic
technological trends changing 3DP: microlattice, a strong metal foam material that is the lightest
metallic structure ever made. It is 99% air, consisting of a 3D
Beyond prototyping applications impacts process designs.
open-cellular polymer structure made up of interconnected
3DP was originally limited to prototyping. Now, 3DP
hollow tubes. There may be many applications for this
methods such as direct metal laser sintering, selective
material in the future.
metal sintering and electron beam melting have advanced
3DP into industrial applications and final assemblies. In Fewer components for complex geometries. 3D printers
considering the application of 3DP, the question companies are able to make different compositions of metal alloys to
need to ask is: what network of supply chain assets and suit the end-product needs. The opportunity to test different
what mix of old and new processes will be optimal?6 Some compositions easily and cheaply can trigger the creation of
processes may benefit from the input of a part that is made materials that have not been seen before and may be better
on demand with 3DP, but others may not be a fit for 3DP. suited to meet certain design specifications than traditional
One thing that 3DP is able to delivery is more data which materials. One interesting aspect of 3DP is that middleware
supports the alignment of existing and new processes. As has the potential to bridge the gap between the design and
Richard DAveni, author and Bakala Professor of Strategy at the 3D printer, meaning that the middleware can use the
Dartmouth Colleges Tuck School of Business, notes, When design parameters as inputs and through the algorithms
3D printing is used to manufacture parts, that portion of draw on an optimal mix of source materials for the end
the process becomes natively digital, with every element product specified in the design. Moreover, there will be an
of each part produced under the continuous control of ability to manufacture components with desired mechanical
software. Contrast that with a conventional stamping or properties. For instance, titanium aluminide (TiAl), used to
assembly-line process.7 create turbine blades, is very brittle at room temperature
and is difficult to use with conventional manufacturing
techniques, such as casting. 3DP allowed GE to produce
thicker blades with high speed by using a 3-kilowatt electron
gun to accelerate a beam of electrons to melt the powdered
titanium aluminide.8 Through these types of applications,
3DP will continue to address the need to reduce waste
andcost.

6
3D Printing Drives Digitization Further Into Products, Processes, And delivery Models, Forrester, 2014 by Sophia Vargas, Michael Yamnitsky,
Khalid Kark, Frank Gillett, Rachel Dines, J.P. Gownder, John McCarthy, Nate Fleming
7
The 3D printing revolution, Harvard Business review, 2015 by Richard DAveni
8
This Electron Gun Builds Jet Engines, GE Reports, 2014 by Tomas Kellner

7 | 3D Printing Report
 Science and technology advancing
materials management. Bar coding
greatly improved tracking and
location of parts along the supply
chain. Later, RFID technology
allowed parts to be found via GPS
coordinates. 3D-printed parts will
change the inventory mix and alter
tracking processes once again.
RFID technology will not necessarily
become a thing of the past; however,
metal powder for printing will be
purchased in such large volumes
that RFID tags may be the less
useful technology to trace powder
from the source to use in producing
3D-printed parts. Going further into
the future, a team of researchers
at Harvard University has extended
its microscale 3DP technology to a
fourth dimension: time.9 Inspired
by nature, the 3D-printed particles
form different structures based on
a reaction to environmental stimuli.
This is an example of advancement
in programmable materials assembly
and enables the ultimate agile supply
chain because the programmable
material can morph into what is
required.

Novel 4D printing method blossoms

9

from botanical inspiration, Wyss Institute

Communications, 2016 by Kat McAlpine

3D Printing Report | 8
 C An active 3D printing market

Gartner projects that the 3DP market for Specialized 3D printer vendors. Most makers of 3D
printers are have been focusing on a specific technology
printer unit shipments will grow at a CAGR of additive layer manufacturing. Some of the 3D printer
of 121.3% through 2019 and exceed $14.6 companies have focused on industrial applications. The
billion.11 The suppliers of 3DP products and inventory turn for these large units is not very fast and
unsold inventory can become obsolete in this space very
services can be segmented as follows:
quickly. Some of the main manufacturers are Autodesk,
Major industrial companies. Some of the big players in this EOS, Exone, Stratasys, 3D Systems, Reprap and Ultimaker.
space are GE and Siemens. GE, for example, is planning
3DP service bureaus. Some manufacturers of 3D printers
to bolster GEs existing manufacturing operations and
also provide the after-sales service and consulting.
help the company build a $1 billion 3D-printing business
According to a Gartner survey, when companies decide
by 2020 through acquisitions of Swedens Arcam AB and
to outsource a 3D print job to a service bureau, 34% of
Germanys SLM Solutions Group AG10. Siemens has opened
respondents view quality as the most important criterion.13
a 3DP facility in Sweden where those with 3D design skills
Some of the options that companies have are: Advanced
and materials science know-how come together to work on
Manufacturing, Aspect, DiSanto Technology (a Unit of
some of the best innovations to bolster Siemens products.
Arcam), Hyphen Services, i.materialise, Ponoko and
Siemens draws on knowledge developed in-house but also
Shapeways.
via acquisitions of start-ups. Midsize-to-large companies
such as Siemens often collaborate with universities and Marketplace providers. Marketplaces are online platforms
research labs to combine theory with testing. For example, which act as intermediaries between individuals or firms
Siemens has partnered with Georgia Tech to improve that own a 3D printer and users who want to manufacture
additive manufacturing.12 Siemens can leverage this 3D objects14. They usually provide 3D printing services
knowledge across its large range of business units, but across a large network of printers in various locations
it can also monetize on this IP by providing services to around the world. 3D Hubs, for example, links a file to a
companies in need of assistance in this space. printer in one of their 5,000 global hub locations that can

10
GE Seeks to Drive 3D Printing Future With $1.4 Billion in Deals, Bloomberg, 2016 by Rick Clough, Niclas Rolander and Andrea Rothman
11
Forecast: 3D Printers, Worldwide, 2015, Gartner, 17 September 2015, G00277739
12
Siemens Expands Georgia Tech Partnership to Drive Advanced Manufacturing Research, Software and Innovation, 2015 by Brie Sachse
13
Gartner, 3D Printer Market Survey Reveals Enterprise Demand Drivers for Technology, Printer and Vendor Decision Making November, 2014,
FOUNDATIONAL August 2016
14
Co-creation and user innovation: The role of online 3D printing platforms, ScienceDirect, 2015 by Thierry Raynaa, Ludmila Striukovab, John
Darlingtonc.

9 | 3D Printing Report
 provide the 3D print in the selected material. This proximity Professional services providers. Bringing together
factor to the consumer has made them successful and different consulting competencies including strategy, supply
increases accessibility of 3DP to anyone15. Other players chain, design and engineering, product development, IT,
include Additer, Kraftwrz, Maker 6, Make XYZ, Materialise analytics as well as tax and legal services helps manage
and Spark. the end-to-end process of 3D printing and accompany
organizations on their journey to adoption. In an inventory
Software vendors. One key differentiator for companies
of thousands, choosing which components may be best
to consider is an open-source platform for crowdsourcing
suited to 3D printing requires a diagnosis and methodology
ideas and for providing completed blueprints for spare
too. In addition, they can recommend and bring together
parts. Companies that have ventured down this avenue
the right vendors for a 3D printing route.
have been heralded by hobbyists, who eagerly download
upgrades or replacement parts. Companies providing open-
source platforms for products can generate brand loyalty
and, above all, can guarantee that there is one file amid a It is not just about 3DP
slew of counterfeit reverse-engineered replacement parts technology adoption. For
that is legitimate. C, for example, is the first open 3DP
software platform (not including the pioneer Reprap, as it example, inserting a
was limited to hardware). C was created by Autodesk and 3D printing sub-process
runs with an Ember 3D printer.
into traditional stamping
will likely require process
redesign.
Paul Brody,
US Advisory Technology
Sector Strategy Leader, EY

3D Hubs Proves 3D Printing Is Bankable, Forbes, 2014 by Jennifer

15

Hicks

3D Printing Report | 10
III Use cases:
3D printing is
impacting a variety
of industries
3DP has made ripples through various industries. The
industries can be mapped based on their current level of
applying 3DP, compared to the future potential (Figure 2).

Figure 2: Current application and future potential of 3D printing by industry

Future
potential

Aerospace
Automotive and Defense
high

Mechanical and
plant engineering
Medical and Dental
Logistics Electronics
medium

Pharma
P&U O&G Fashion
Wholesale & Chemicals
Retail
F&B
low

Current
application
low medium high
Source: EY analysis based on 2016 EY global 3D printing survey.

11 | 3D Printing Report
 Example applications of 3D
A printing across industries

The following provides an overview of sub-sectors are also looking at 3DP. The technology has
enabled a more patient-centered approach in medicine by
different use cases across selected industries: offering customization of prosthetics and dentistry, and by
Aerospace and defense. This industry is at the forefront enabling bio-printing, where scientists print human-sized
of 3DP in the manufacturing industry. Due to the low- bones, cartilage and muscle.20
volume, high-value production typical of this sector, 3DP
Food. Many people shy away from the thought of
is of particular appeal to big conglomerates and small and
3D-printed food, but there has been a lot of innovation in
medium-sized companies alike. Using this technology rather
this area. From crystalized sugar cake toppers and intricate
than traditional methods is yielding products that are faster,
chocolate designs, to cracker-like yeast structures with
lighter (better weight to thrust ratio), less wasteful (more
seeds and spores that sprout over time, to ready-to-bake
fuel efficient) and more financially viable. 16 GE has stated
pizzas and filled ravioli, printed food has the culinary
that from 2016, its new Leap aircraft engine will include
community talking. Early adopters are German retirement
nineteen 3D-printed fuel nozzles, designed to last five times
homes, which serve a 3D-printed food product called
longer than traditionally made components.17
Smoothfoods to elderly residents who have difficulty
Health care. The medical field is another industry greatly chewing.21 The EU has invested nearly $3.3 million in this
impacted by 3DP. US hearing aid production converted project with the hope of improving quality of life for frail
to 100% 3DP in less than 500 days.18 Key to this and elderly people living in care facilities.22 For people who
transformation was that 3D printers enabled a manual, have trouble chewing or swallowing, this method produces
labor-intensive industry to transform into an automated purees that offer tastier alternatives than traditional meals
one.19 As health care focuses intently on reducing costs, such as baby food.
improving quality and becoming more patient-centric, other

16
How 3D printing is driving efficiency in aviation, Euronews, 2015 by.
17
3D Printing Creates New Parts for Aircraft Engines, GE Global Research.
18
The 3-D Printing Revolution, Harvard Business Review, 2015 by Richard DAveni.
19
The 3D Printing Revolution You Have Not Heard About, Forbes, 2013 by Rakesh Sharma.
20
Organs to Order: 3D Bioprinter Makes Replacement Bones, Ears, Livescience, 2016 by Agata Blaszczak-Boxe.
21
Why 3D food printing is more than just a novelty its the future of food, Digital Trends, 2015 by Kyle Wiggers.
22
EU funds 3D-printed smoothfood for care homes, Wired, 2014 by Katie Collins.

3D Printing Report | 12
 Addressing sector-specific factors will
B determine 3D printing adoption

In this section, is a detailed review of the Benefits of 3DP. 3DP is appealing to suppliers as well
as operators in this market. For suppliers, there is the
status of 3DP in three selected industries, and potential opportunity for reduced cost to supply aftercare
the factors that could determine the nature of services for major equipment. This is due to a reduced
future adoption. need for storage/production of spare parts (especially
for discontinued/older products) and aftersales logistics
and client support. The reduction in transportation costs

1
means that product costs can be reduced, fluctuations in
Resource industries (oil and gas transport costs can be avoided and location is no longer a
and metals and mining) barrier to client service (opening up the market to smaller,
currently regional suppliers). There is also the potential
to use analytics for the consumption of spare parts (as
Industry landscape. The resources industry is use of tracking would be possible) to enhance product
characterized by its geographically distributed and often performance and predictive maintenance/aftercare
remote operations. This presents operators with significant activities. In addition, 3DP shortens the development
challenges in managing logistics, making sure key parts and retooling process through design changes and
are available for maintenance and keeping downtimes to allows parts to be tailored to specific site conditions and
a minimum. Due to the impact of downtime on production requirements. For operators, critical spares and wider
targets, operators typically hold large inventory stocks inventory storage costs can be minimized and lead time
(often as critical spares on multiple projects), much of (for shipping of spares) reduced to only the time it takes
which may never be used. Similarly, equipment suppliers to print parts. Cost of products can be reduced due to
within the industry have to maintain stocks post-sale exclusion of transportation costs. Security of supply issues
for aftercare support, often with little understanding of (including bribery and corruption) are negated, allowing
equipment performance on-site and, therefore, pipeline remote operations to run independently of outside/local
requirement for spares. The geographical distribution of influences, even in geopolitically challenging locations.
the industry, with both suppliers and operators often in With fewer welds, quality of components may be higher
challenging locations such as the open ocean, means that due to a reduced number of weak points on metal products.
transportation/logistics costs make up a large portion of 3DP also allows lower cost trials and prototyping of new
replacement parts/maintenance costs. With commodity components in existing plants and operations.
price volatility continuing to impact the industry and the
There are several cases where 3DP is already being applied in
continued need to minimize downtime, resource companies
the field:
and suppliers are seeking to reduce costs wherever possible
while maintaining or improving quality of products and Sandvik use case. Sandvik, a global engineering group
speed of repair/maintenance activities. in tooling, materials technology, mining and construction
and a key supplier for many resources companies, is
evaluating 3DP through various initiatives to observe how
the technology can be used in its production. As part of
these initiatives, Sandvik is opening a new 3DP research

23
Sandvik Pushes 3D Printing to Create Fuel Tubes, Drilling Gear, BloomberBusiness, 2015 by Niclas Rolander.
24
Heres Why 3D Printing Needs More Metal, Fortune, 2015 by Andrew Zaleski

13 | 3D Printing Report
 and development center to evaluate benefits across the and loss of IP/security concerns need to be overcome and
corporation. Advantages may include faster production, surpassed by a benefits case of technology for the platform
increased flexibility and being able to create components to be successful. Similarly, the analytics benefit above (for
in shapes impossible to accomplish through standard post-sales care) may expose engineering firms to more
methods. What is attractive about 3DP is the new way accurate and uncomplimentary comparisons between them
of thinking, said Mikael Schuisky, Sandviks operations and others.
manager for additive manufacturing. We are used to
Technology. The technology is developing extremely
thinking that objects are processed out of a material. We
quickly, meaning that selection of providers to partner
need to start thinking about starting from a blank canvas,23
with could be challenging. Its key to build flexibility into
pointing to the fact that traditional manufacturing methods
any agreements. In addition, the industry will likely require
help cut away unwanted material where 3DP makes an
major software investment to fabricate intricate designs in
object by layering materials in the exact shape of the
3DP. Resource players could want the original equipment
finished product.
manufacturers (OEMs) to drive this even though it might
Alcoa use case. Similarly, Alcoa, a global leader open doors to cannibalize their own sales.
in lightweight metals technology, engineering and
Quality issues/approvals. Components on O&G facilities
manufacturing, is investing US$60m in building its new
are subject to stringent testing requirements. There
additive manufacturing center in an attempt to fill a big
is significant work required to facilitate not only that
need in the market for providing low-cost metal materials
3D-printed products meet existing requirements, but that
specifically made for 3DP. There are just a few materials
testing and approvals can be done on a product range
available today that are usable within 3D printing of
rather than individual printed products. The opportunity in
metals, says Rod Heiple, Alcoas director of R&D for
the oil and gas industry is not just in the machinery parts,
engineered products and solutions. A material developed
but also in ancillary products that support O&G operations
as a feedstock for one additive process may not be, and
and have lower critical importance and hence lower quality
in fact is unlikely to be, the optimal material for the next
requirements.
additive manufacturing process. 24
High cost of 3DP. Parts to build the printer are still very
Mine topography. Another application for 3DP, specifically
expensive. Actual printing is cheap. In addition, there is a
for the mining sector, is mine topography. Mining
lingering concern about warranty. Resource companies are
engineers print a 3D topographic model to aid in the
hesitant to put 3D-printed parts into their machines if they
visualization of mining sites and other geological locations
are not covered for damage in case the parts fail.
using survey data and aerial photographs. This is used for
securing the optimal layout of the mine. Its not always Success of early adopters. Timing of investment can be key
apparent from looking at a drawing how mine waste to uptake, as selecting the time when the technology has
facilities integrate with their surrounding environment, become both cheap enough and of sufficiently high quality
explains MineBridges Carlo Cooper. By using 3D printed may provide early adopters with a significant advantage.
models, its easier for stakeholders to see the visual impact At that point, adoption could be rapid. Significantly though,
of these structures. 25 the O&G industry is (in many locations) impacted by local
content obligations, meaning that 3DP adversely affects a
There are obvious opportunities for 3DP in the resources
companys ability to deliver against their obligations.
industry; however, there are several factors that can impact
the uptake:

Reluctance to collaborate. Engineering firms and suppliers

may be reluctant to provide CAD drawings/input to clients,
as they risk losing IP. This perceived lack of product control

Whiteclouds Creates Full Color 3D Printed Topography from Aerial

25

Photographs, 3D Printing Industry (3DPI), 2014 by Scott Grunewald

3D Printing Report | 14
2
can also be used to produce spare parts, as well as tools for
Automotive spare parts. The parts and tools can be printed on demand
from digitally stored blueprints rather than maintained in
large inventories, Several cases of 3DP are already applied
Industry landscape. The automotive industry is under
in the field:
significant price and cost pressure. Tier 1 and tier 2
suppliers, which provide car manufacturers with auto Local Motors use case. Local Motors is the first company
parts, are chasing operational excellence to remain able to 3D print most of a car. About 75% of the current
competitive. Margins for component parts are tight. In car model is 3D printed, with a goal to consolidate
addition, the service agreements between component the traditional bill of materials to get to 90%. 26 This
suppliers and OEMs require spare parts to be on inventory is especially significant, because traditionally it takes
for several decades. On the flip side, consumers demand thousands of components to make a car, while in this
customization. This adds complexity into the production, as example it takes dozens, reducing the complexity of the car
low-volume and high-variation parts can bring inefficiencies and hence its longevity. 27
into the system.
Toyota use case. Toyota Central R&D Labs Inc. and
Benefits of 3DP. 3DP is especially attractive to the Materialise have developed 3D-printed car seat designs as
automotive industry, because in some cases it can produce well as processes for production. The bionic structure and
what traditional manufacturing methods cannot. 3DP the softer core material, which does not include the foam
can thereby add most value in the realization of product used in traditional seats, is lighter and more comfortable.
concepts. With 3DP, lightweight car components can Additionally, it has improved the heating functionality as
be produced, which could lead to car weight reduction, the surface material absorbs less than half of the energy
improvement of car performance and better fuel economy. when sitting in the sun. 28
In addition, direct manufacturing applications, where 3DP
BMW use case. BMW developed a one-piece, light-metal,
can be applied in the production of low-volume and high-
3D-printed water pump wheel to replace the previously
customization parts, can effect significant efficiency gains
applied model composed of plastic parts. The high-precision
in production, operations and supply chain. Furthermore,
component, which is subject to high stresses, consists
3DP can improve efficiency in manufacturing by direct
of an aluminium alloy. It has turned out to be the ideal
manufacturing of tools for injection moulding. This
product for the small batch. The key reason is that 3DP
method, which helps to produce car interior plastic parts,
allows for the inclusion of design refinements, achieves
usually requires significant cooling time. 3DP can improve
ideal aerodynamics of the component and confirms the
production cycle times, improve the quality of the tools
dimensional accuracy of the water pump wheel during the
and lower maintenance costs by applying internal cooling
entire production process. There are already 500 water
channels to the injection moulding method. In addition,
pump wheels in use in both German Touring Car Masters
automotive OEMs use 3DP for cost-effective and fast
(DTM) cars and Z4 GT3 customer vehicles. 29
production of manufacturing aids, jigs and fixtures. 3DP

26
Local Motors FAQ, How much of the LM3D is 3D printed?, 2016
27
This drivable car was 3D printed in 44 hours, Business Insider Tech, 2015
28
Print Your Next Car Seat for Improved Fuel Efficiency, PSFK, 2015 by Jason Brick
29
Racing technology right from the 3D printer: BMW makes water pump wheel for DTM racecars using additive production method, BMW Group, 2015
30
Peugeots Fractal concept uses 3D-printed damping chambers to trap sound, Digital Trends, 2015 by Andrew Hard
31
Ideas Incubator video, Peugeot, 2016

15 | 3D Printing Report
 Peugeot use case. Peugeots sound-inspired Fractal
concept car has an interior, called i-Cabin, with 3D-printed
panels, which are both visually stimulating and acoustically
functional. 30 The Fractal name is a reference to the 3D
print models shaped as anechoic chambers and repeating
patterns. To generate the sound-trapping textures, they
needed to use 3DP, which was the only way to produce
these parts with very complex shapes. Eighty-two percent
of Fractals interior surfaces were made with 3DP, which is
something pretty spectacular for the automotive world. It
allows achieving style thats finer, more efficient and lighter
than would be possible through traditional processes. 31

Opportunities for 3DP in the automotive sector are vast, but

there are still some factors restraining the adoption of this
technology:

Costs. Material and system costs for 3DP are still high. For
a cost-sensitive industry like automotive, can slow adoption.
Manufacturers and suppliers need to find the real value-add
applications of this technology in their value and supply
chains. Business cases are often obvious once supply chain
operations costs for specialty part production are compared
to 3DP costs over time.

Production speed. In the last decade, additive

manufacturing technologies have drastically advanced
in speed and quality and, as a result, are increasingly
applied in direct manufacturing of components and end
parts. Nevertheless, in many of these cases, application is
at or near lot size one production. The production speed
of the current 3DP technologies is still a limitation, and
if the product design is not exclusively 3DP producible,
then application of 3DP for high-volume products is not
economically feasible.

Mind-set. 3DP has been used in automotive for prototypes

since the 1990s. A mental shift in the industry could help
3DP be viewed as a technology for production of end
components not as a substitute for traditional production,
but rather as a means of creating unique value-adding
products only producible with additive manufacturing.

31
Ideas Incubator video, Peugeot, 2016

3D Printing Report | 16
3 Consumer products and retail

Industry landscape. The consumer products and retail Benefits of 3D printing

(CPR) sector is represented by large multinational
Mass customization. 3DP addresses emerging
companies, which own some of the worlds best-known
consumer trends of personalization, connectedness
brands, operate extensive manufacturing networks and
and convenience by letting users ideate, design and
manage complex global supply chains/routes-to-market.
manufacture individualized products. Products designed
The balance of the sector has been disrupted by three
for their own ergonomic needs can enhance utility and
fundamental shifts:
maximize return on each design for companies.32
1. Consumers are changing. The rise of digital has changed
Time-to-market. Rapid prototyping makes R&D cycles
the game from B2C to C2B. Demographic changes are
shorter while providing the flexibility of creating
shifting the control further toward consumers. In CPR as in
and testing multiple design iterations. From a retail
health, this trend appears to have reached a tipping point and
perspective, 3DP can be used to modify, rather than
consumers are demanding LATTE (local, authentic, traceable,
create, existing products. This can incentivize store
transparent and ethical) products.
visits to personalize the fit of the item via point-of-sale
2. Growth is challenging. Political, macroeconomic and production and could have transformational impact on
regulatory volatility in emerging markets coupled with fragile manufacturer-retailer relationships.
mature markets is increasing complexity and ambiguity.
Manufacturing and supply chain efficiency. 3DP
New players are taking share, current product portfolios and
enables on-site production, thereby helping companies
supply chains are found wanting, and rules of marketing are
reimagine their manufacturing and supply networks. It
being redefined by analytics.
can slash development time, eliminate tooling costs, limit
3. Costs are harder to control. External cost pressures related inventory/storage spaces, reduce logistics/transportation
to commodities, currency and talent are growing. Internal costs and help contain labor requirements.33
cost structures are under stress due to an imbalance in
Waste reduction and lower taxes. 3DP can improve
mature and emerging market production capacities, the
the productivity of materials by eliminating waste. Nike
impact of omnichannel on supply chain and the impact of
indicates that reducing waste through 3DP alone could
digital on SG&A.
produce US$1 billion in cost savings. The electronic
transmission of design plans for local production can
potentially eliminate custom duties.34

32
What could 3D printing mean for consumer products?, Taylor Wessing LLP Article, 2013 by Lorna Caddy, Randeep Grewal.
33
3D Printing and Its Disruptive Impacts on Supply Chains of the Future, Technology Innovation Management Review, 2015 by Sebastian Mohr,
Omera Khan.
34
What Happens When 3D Printing Turns Consumer Products Into Digital Content?, Forbes, 2014 by Jonathan Salem Baskin.

17 | 3D Printing Report
 Consumer engagement. CPR companies leverage Hershey use case. Hershey engaged consumers to create
3DP to garner valuable consumer insights and develop unique designs through a 3DP candy machine. Consumers
innovative marketing campaigns. Co-designing/co- interacted with a library of 3D graphics on an iPad to
creating with consumers and crowdsourcing via open get the machine to form a number of chocolate designs,
platforms provides these companies a unique opportunity providing Hershey valuable insights on preferences.38
to connect with consumers and drive brand loyalty.
Mattel use case. Mattel showcased ThingMaker 3DP
There are several cases where 3DP is already being applied in the to create customizable toys at the New York Toy Fair.
field: Developed in collaboration with AutoDesk, it comes with
an app that lets users select from dozens of 3D design
Nike use case. Already using 3DP in its automatically
blueprints, so they can print out parts that can be easily
knitted Flyknit shoe fabric, Nike is pushing 3DP further
connected.39
through a new design and manufacturing center in
partnership with DreamWorks Animation. It could be There are obvious opportunities for 3DP in CPR; however, a couple
capable of nearly instantaneous digital print applications, of factors could determine the uptake:
photo-real 3D visualizations and ultra-rapid prototyping.35
Cost effectiveness. To penetrate the CPR sector beyond
Fashion use case. Haute couture specifically has been in the prototyping and novelty applications, 3D-printed products
media for 3D-printed dresses on the cat walk. You can now needs to be more acceptable to a larger number of
print 3D surfaces without seams or without parts and there consumers so that it can compete with the speed and scale
are just gradients of material that vary in property, size, of traditional manufacturing. Companies could need to
and flexibility, and complexity, says Neri Oxman, Professor strike the right balance of using 3DP and complementing it
of Media Arts and Sciences MIT Media Labs. The options with traditional manufacturing techniques.40
to vary material properties, but also to use highly complex
Innovation. Next-gen devices and network connectivity
geometries in relatively short periods of time, is completely
could broaden the space for 3DP in CPR. There can be huge
transforming the fashion industry as we know it. 36
benefits with the rapid advancements in these technologies
Unilever use case. Unilever leverages 3DP injection moulds for example, consumers designing products on their
for its household care and laundry goods divisions, slashing smartphones and iterating prototypes.
lead time for prototype parts by up to 40%. It 3D prints
injection mould tools to create prototype parts in final
material, for full functional and consumer testing.37

35
3D Printing In Manufacturing Revolution, Investors Business Daily, 2015 by Elaine Low, Nike Eyes.
36
3D Printed Dress on the Catwalk at Paris Fashion Week, Stratasys, 2013 by Neri Oxman
37
Unilever Leverages 3D Printing Injection Molds, Slashing Lead Times for Prototype Parts by 40%, PR Newswire, 2015
38
Hersheys Chocolate 3D Printer Whips Up Any Sweet Design You Want, TechCrunch, 2015 by Sarah Buhr
39
This $300 3D printer lets kids create their own toys, Techspot, 2016 by Rob Thubron
40
The Future of Retail, Chain Store Age, 2015 by Andrew Levy

3D Printing Report | 18
IV Accelerating the
3D printing journey

Organizations need to overcome their

A lingering concerns to drive faster adoption

There are three key concerns that companies assistance of 3D scanners, thereby generating 3DP files for
use or resale. This would be an IP infringement. It has been
can address to accelerate their 3DP journey: predicted that by 2018, theft of 3DP intellectual property
Quality. With current laws clearly out of sync with could total roughly US$100 billion in losses per year.43 In
this rapidly emerging technology, 3DP leads to many its most basic sense, patent infringement occurs when
unanswered questions around liability. If manufacturing every element of a claimed invention or process exists
moves to users, who will be accountable for product in the infringing physical embodiment of the product
functionality or potential hazards? How will regulations or process.44 So what does this mean for possessing and
change in a 3D-printed world? In industrial applications creating digital copies of the OEMs spare parts or other
specifically, quality of the prints is very important. As an products? While it remains unclear how lawmakers will
example, some 3D-printed techniques like direct metal balance the scope of the law to prevent it from becoming
laser sintering and electron beam melting, although made either too narrow or overreaching, it seems that affording
to the specifications of the CAD model, can have very protection to the patent holder against the sale of the
rough finished surfaces. 3DP has received criticism for CAD file could strike the appropriate balance, essentially
poor surface quality. However, a study by the Uppsala preventing infringers from extract[ing] the commercial
Universitet41 proved that in controlled testing with an value of the invention.45
Arcam A1, the use of a finer powder and a smaller build-
Taxation. One of the key areas of consideration for 3DP
layer thickness can improve the surface resolution of end
is the intersection of IP and taxation. IP is expected to
products. Companies that have know-how in materials
account for an increasing share of a products value,
science coupled with the discipline of regimented trial
as digital printing reduces costs for both individuals
and error to learn the material compositions and the
and organizations.46 When 3DP becomes commonplace,
melting properties of powder could do well with additive
warehouses and manufacturing operations may no longer
manufacturing.
be the norm. Current multinational tax profiles based on
IP protection. Public access to blueprints online raises minimizing IP profit rely on non-IP related substance. There
copyright and intellectual property (IP) right concerns. is likely to be a major question as to the point of production
If anyone can print anything, who is the creator of the of an object, since 3DP does not necessarily align profits
object? For example, if a spare part is required and a to people and their functions for taxing purposes.47 This is
company doesnt need to go to the OEM, there is a potential important, as there are tax inefficiencies within the current
cost savings opportunity by using aftermarket parts, supply chain model. It could therefore be necessary for a
and 3D scanners and printers may make this easier. The company transitioning from the current supply chain model
process would entail reverse engineering42 a part with the to a 3DP warehouse to structure its tax planning in an
efficient manner.48
41
Optimization of Electron Beam Melting for Production of Small Components in Biocompatible Titanium Grades, Uppsala Universitet, 2015 by Joakim
Karlsson
42
The 3D printing revolution, Harvard Business review, 2015 by Richard DAveni
43, 44, 45
Digital Patent Infringement in an Era of 3D Printing, University of California, Davis, 2015, Vol. 48:1319, pg. 1322 by T. Holbrook, L. Osborn
46, 47, 48
3D Printing Taxation Issues and Impacts, EY, 2015 by Channing Flynn

19 | 3D Printing Report
 Steps companies need to take to
B accelerate their 3D printing journey now

Starting the journey of 3DP is an ambitious identification of the optimal value-adding application of
3DP for the company.
task for many companies, since they need
to understand to address some general For most companies, 3DP is very new and a potentially
dramatic change for both operations and the business. Many
challenges: organizations need help understanding how the technology
VUCA (volatility, uncertainty, complexity and ambiguity). can transform them and how they could optimally lead this
Companies face both macro and industry-specific needs transformation. Generally, 3DPcould help companies gain
and business challenges such as economic uncertainty, competitive advantage, improve their positions in the value
cost volatility, pricing pressure, increasing customer chain, achieve growth and increase the efficiency of their
requirements and operational challenges for assuring fast supply chains and operations. As for the application of 3DP,
response to these customer needs. A 3DP journey may not it is possible to distinguish between 3DP as an efficiency
make life simpler, at least not right away the 3DP industry strategy and a growth strategy:
is rapidly evolving and offers a variety of systems, different
Efficiency strategy. For the efficiency strategy, there is
materials, diverse applications and several different
a targeted application of 3DP in the current supply chain
suppliers of systems and services. For many companies, the
and operations, aiming to improve the performance in
prospect of exacerbating VUCA is unappealing.
that particular area. The efficiency strategy could cover,
Lack of awareness. The level of awareness of the state for instance, prototypes in product development for
of the art of 3DP and its application is very low in many reduced time-to-market and development costs or direct
companies. There is a common path that most of the manufacturing of tools with conformal cooling for reduced
first movers in the 3DP industry take. To gain the needed cycle times and a higher utilization of manufacturing.
information, companies often start collaborations with Following this strategy is the less risky opportunity since it
universities, system manufacturers, research institutes and requires no changes in the end product, just in the way it is
service providers. created.

Inexperience. Organizations start gaining experience Growth strategy. Unlike the efficiency strategy, the growth
with the technology by testing it in different areas and strategy comes by introduction of new or redesigned
applying it to certain sectors like product development or 3DP products. The biggest benefit can be achieved when
engineering. This can be a very long and time-consuming 3DP is applied as a direct manufacturing technology for
path to follow. And there is no guarantee it will lead to

3D Printing Report | 20
 production of end products and components. This can independent from suppliers. Last but not least, 3DP
enable companies to potentially optimize product design, supports companies to rethink their aftermarket and spare
gain additional customer value, create new products or parts strategies and to establish new approaches with
improve existing ones. These enhancements can open new increased responsiveness and reduced costs.
revenue sources and markets, and are therefore referred
The first movers that successfully adopted 3DP viewed it as a
to as a growth strategy. 3DP for direct manufacturing of
strategic move and had a clear vision of what 3DP presented
customized and personalized products and components
to their business. EY can help companies understand the
could therefore be recommended. Additionally, 3DP can
biggest value of the 3DP application for the business and help
be considered for parts and products of a certain level
them trace a path to it. This follows a four-phased approach
of complexity, with new geometries, internal or bionic
(see Figure 3):
structures, in particular when additional value for the
customer is created by a new product design, improved Creating organizational awareness. The aim of the first
quality and functionality. Changing the design of the end phase is to raise the level of the clients awareness, enabling
product will then trigger changes and improvements in the joint working to identify 3DP potential.
supply chain and operations. With a 3DP-feasible design,
Performing a 3DP diagnostic. During the second phase,
companies can achieve the freedom to produce even
the focus is on identifying the areas of application and use
closer to the point of demand, which helps increase their
cases that would bring the highest added value. To begin
responsiveness and deliverability by decreasing the cost or
with, we work together with clients to understand the
inventory, the transportation efforts and logistics handling.
companys strategy, business model, product portfolio and
Companies can also obtain the flexibility to produce
efficiency challenges in the supply chain and operations.
lot size one products without tools and changeovers
Based on the current operations performance and vision of
while maintaining production capacity. The engineering
future development, we help the client select the relevant
departments benefit from new possibilities for designing
product groups and operational areas within which to
and producing special and customizable machine parts

Figure 3: 3D printing four-phased approach

I II
perspective Product

Supply chain and operations

1 2 3 4
Achieving 3DP 3DP Transformation
3DP Diagnosis 3DP implementation
awareness Roadmap
approach Awareness about the Dene 3DP application Dene companys True Dene and implement
3DP technology but also areas by scan of the North on the product operational processes
about the inuence it product portfolio and portfolio and SC&O that will enable full and
could have on the SC&O for identifying cost development under sustainable integration of
company from certain drivers and change consideration of applica- 3DP in the company and
industry. potentials. tion of 3DP technology its SC&O.
and derive target state.

Strategic direction
setting
3DP eco-system planning

supplier customer

results
Performance
Industry Client manufactur-
Processes und
Management management
goods ing from quality organization
incoming pressing to control
shipping of change
Hot Isostatic

grinding,
mass polishing,
Technology production laser making

IT and enabling
technologies

21 | 3D Printing Report
 conduct deeper analysis. We help analyse further for
printability and identify the added value from the redesign
for 3DP. We then support estimates as to the impact of
3DP applications and the business cases for areas with
the highest potential. Quantification of the impact is
particularly important, since this can not only justifies the
comparatively high investment but also demonstrates the
impact the use of 3DP could have on customer value and on
the value chain.

Developing a transformation road map. In the third phase,

we help consolidate, prioritize and build a three- to five-
year transformational road map. Within this road map,
we work with the client to define the aspects necessary
for transforming the business and operations to support
successful integration of 3DP. This also includes helping the
client identify partners and providers, skills, organizational
design and the specific type of 3DP application. Capturing
the potential value of 3DP is not isolated to identifying the
right use cases. Companies also need to build capabilities
and redesign the organization in a way that can support
the sustainable embedding of the 3DP technology into the
company.

Supporting implementation. In this phase, we support the

client with the definition and implementation of operational
processes that are required for the full and sustainable
integration of 3DP in the organization and its supply chain.
Creating early success in the implementation phase is
critical to delivering sustainable value.

More information and

contact details
www.ey.com/3Dprinting
Global3DP@ey.com

3D Printing Report | 22
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