i3 - May/June 2016 - 46

Business

BY ALAN AMLING, UPS, AND STEVE KOENIG, CTA

CTA R E P O RTS
3D PRINTING COMES OF AGE.
ARE YOU READY?
It's been more than three decades since Chuck Hull
invented his first 3D printer, an eternity in an age when technological innovations pop up and disrupt entire industries almost
overnight. Some, like smartphones and video chat, seem to come
out of nowhere and spur historic tech revolutions. Others, like
dial-up modems and pagers, make an important splash but then
slip quickly and quietly into obsolescence.

But 3D printing has followed a different story arc.
This technology, which has
roots in the early 1980s, is a
slow burner that has finally
caught on. And its applications
are not what we expected.
Instead of a 3D printer in
every home, the technology appears better suited to
industrial uses like prototyping and product development.
Innovators of all stripes use 3D
printers to bring their product
designs to life cheaply for tests
and tinkering.
That's a great use for 3D
printing, and more companies are discovering those
benefits every day. But now
that 3D printing has hit its
stride and the technology is
more advanced, progressive
adopters are taking it in a new
direction: industrial manufacturing. Smart companies
that want to survive for the
long term had better carefully
consider what this means for
their businesses.
UPS and CTA recently surveyed eight companies in eight
different industries - including
consumer tech, accessories,
appliances and automotive -
on their 3D printing use. We
learned that while prototyp46

MAY/JUNE 2016

ing remains the most common use, the fastest-growing
application for 3D printing is
the manufacturing of parts for
established products.
This shift in usage marks
an inflection point, for the 3D
printing industry is forecast
to be a $7.3 billion industry in
2016 and set to nearly triple
by 2020. A 2015 report from
Wohlers Associates says the
use of 3D printing for parts
production grew from virtually
zero in 2003 to 42.6 percent of
global 3D printed product and
service revenue in 2014.

Our advice: Take a close look at 3D printing and
its applications for your business. Embrace the
disruptive potential now because the 3D manufacturing revolution is here.
upgradeable hardware and
internal parts.
Meanwhile, some medical
devices companies also have
embraced 3D printing wholeheartedly. The $2 billion hearing aid industry is definitely
on board. There are more than
10 million 3D printed hearing
aids in circulation worldwide.
We expect to see similar 3D
printing expansion in other

The 3D printing industry is forecast to be
a $7.3 billion industry in 2016
And there's still so much
room to grow. Despite this
stunning expansion, 3D
printed manufactured goods
still account for less than
one percent of all manufactured products in the U.S.
Early adopters of 3D printing
technology include high-tech
companies, and they continue
to lead the way. Smartphone
manufacturers have begun
using the technology to build

industries, including automotive and aerospace.
The benefits 3D printing users
gain is undeniable:
* Lower cost to produce products or parts in small batches
* Faster prototype production
* Reduced material waste
* Wider range of design options

* Ability to create products
with new properties and
capabilities
* Ability to customize small
production runs and even
single items
Clearly, 3D printing has
emerged as a disruptive force
in manufacturing. But the disruption doesn't stop there. It
also has deep implications for
supply chains and logistics.
That's why UPS has invested
in a 3D printing startup called
CloudDDM. UPS hosts a
CloudDDM printer facility -
about 100 printers so far - at
its global air hub in Louisville,
KY. Customers upload designs
to CloudDDM and then select
quantity, material type, color
and print priority. CloudDDM
can produce those parts late
into the evening and pass them
to UPS for next-day delivery.
A lot of people and companies
are already benefiting from
this unique partnership.
Now, of course, there are
still barriers to broad-based
adoption of 3D printing. This
I T I S I N N O VAT I O N

i3 - May/June 2016

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