With Australian manufacturers undergoing a period of rapid change that is transforming the industry, additive manufacturing is an area of enormous potential, but the opportunities it offers are often misunderstood. By Dev Anand Dorasamy.
With the mining boom having come to an end, manufacturing will carry a greater share of the load as the economy turns to other industries for growth. Over the past decade, the rising prominence of imports in the domestic market has placed significant pressure on the industry. However, the depreciation of the Australian dollar has provided some support for our manufacturers, making the products made in this country more affordable abroad, as well as making imported products less competitive.
Nevertheless, the domestic manufacturing sector continues to face strong headwinds. With labour costs that are among the highest in the world, Australia is not strategically suited to compete in the mass manufacturing industry against low-cost manufacturing bases such as China. On the other hand, Australia is very well equipped to cater to the manufacture of products that require complex and customised designs. Additive manufacturing is an ideal tool in facilitating such forms of production.
Frost & Sullivan’s recently completed research report – Strategic Analysis of the Additive Manufacturing (3D Printing) Market in Australia – analyses the overall trends in the additive manufacturing market in Australia, as a first step in demystifying this rapidly growing yet often misunderstood industry. Key insights presented in this study were obtained from primary data gathering, through telephonic and face-to-face interviews with additive manufacturing system manufacturers and distributors as well as key academics in the space in Australia using a structured discussion guide. The discussion guide included closed and open-ended questions, to obtain quantitative data, as well as qualitative feedback.
The transition to “smart manufacturing” is driven by global industry structural changes, aiming to move the sector away from low-cost, high-volume production towards high-margin, low-volume models. Advanced manufacturing technologies, such as additive manufacturing or 3D printing, are revolutionising the industry, with new capabilities to design and manufacture complex, customised products with short lead times, minimal tooling and wastage, and low labour input. However, at the moment the pace of adoption of innovation technologies such as additive manufacturing among most traditional Australian manufacturers is still low.
Large Australian firms perform relatively poor on innovation on average, ranking 21st out of 32 OECD countries in 2014. In contrast, Australian small to medium-sized enterprises (SMEs) are deemed to be more innovative, ranking fifth out of 32 OECD countries, according to the Australian Innovation System Report 2014. However, due to the high cost of many of the advanced manufacturing technologies, these tools are often out of reach for smaller Australian companies.
The most apparent benefits of additive manufacturing compared to traditional subtractive methods are well known: reduced cycle times (with up to 90% time savings); reduced parts count; lower design costs (with savings of up to 75% ); and Just In Time (JIT) delivery, resulting in little or no finished inventory in stock. Nevertheless, it is important to remember that traditional manufacturing still holds an unassailable position in mass manufacturing that additive manufacturing is unlikely to ever unseat. That is, until the focus of production and products shifts from cost to performance. The most significant, and often least understood, benefit of additive manufacturing is in its ability to produce shapes and designs that cannot be made using traditional subtractive methods.
Subtracting boundaries
The average person may not be aware of the simplification process through which a designer’s vision is distilled and reiterated in order to make a component or product “viable” for traditional manufacturing. More often than not, this involves significant changes in the design and functionality of the original concept, leading to compromised aesthetics and performance. This phenomenon is so prevalent that it is not uncommon for designers to “self-censor” in order to meet manufacturing requirements.
Additive manufacturing technology, on the other hand, has almost no restrictions on what can be produced, and hence gives designers the freedom to explore the boundaries of what is possible. The most significant impact this phenomenon has had is in the improvement of part performance. The aerospace industry is already reaping the benefits of additive-produced parts that are significantly lighter than their traditionally manufactured counterparts.
Australia is well placed to take advantage of this trend given that it provides 51% of the world’s titanium ore—a material considered vital for aerospace innovation. The Monash Centre for Additive Manufacturing was built to drive the establishment for high-end, waste-free, tailored manufacturing for the aerospace industry. The commercial arm of this centre, Amaero Engineering, recently succeeded in producing the world’s first 3D-printed jet engine components.
It is expected that other industries that have relatively low-volume production needs and that place a significant premium on performance or aesthetics will reap benefits learned from catering to the aerospace industry, and will witness increased penetration of additive manufacturing technology in their supply chain.
Overcoming cost barriers
The high cost of additive manufacturing systems, particularly metal-based systems, still proves to be a major barrier to the mass adoption of this technology, particularly among SMEs. One Australian company working on making metal-based additive manufacturing technology more accessible to manufacturing firms is Perth based Aurora Labs, who claims to have developed the world’s cheapest additive manufacturing system for metals.
While the widespread application of additive manufacturing technology in commercial manufacturing is merely a question of time, the proliferation of home-based additive manufacturing systems in Australia is another matter. Even though this year has seen mainstream retailers such as OfficeWorks and Aldi offering additive manufacturing systems and consumables at their retail stores, the consumers of these products seem limited to hobbyists and designers.
In much the same way that the personal computer gained mass acceptance due to improved accessibility of its applications, it is expected that home-based additive manufacturing systems will need significant efforts in making design software accessible to the average person in order for it gain mass acceptance.
Adelaide-based Maker’s Empire is tackling the issue of design software complexity by tailoring it so that it can be used as part of primary and secondary school programs. The company is experiencing strong growth both domestically and internationally, with its program being deployed across schools in Australia and the US.
Nonetheless, even with significant improvements in usability of design software, it is doubtful that the average household will ever need a dedicated additive manufacturing system at home. The more likely scenario would be that the number of additive manufacturing service bureaus will increase dramatically, and will be located in more accessible retail spots.
After years of promising to revolutionise the world, it is easy to understand why additive manufacturing technology has many sceptics. However, perhaps part of the problem has been the focus on the wrong benefits of additive manufacturing, with not enough attention to what it makes possible. Additive manufacturing will not only change “how” the world makes but more importantly “what” it makes. And Australia cannot afford to come late to this party.
Dev Anand Dorasamy is a Consultant – ANZ at Frost & Sullivan.