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The advent of additive manufacturing has far-reaching implications that may drastically change manufacturing and trade, as well as missions into space. Significantly in September 2014, the U.S. Aeronautics and Space Administration (NASA) sent a 3D printer to the International Space Station. The printer will be used to provide real-time replacement parts at the station, enhancing safety as well as efficiency.

Digital manufacturing enables firms to produce on the 3D printer what it formerly had to order from a local or foreign supplier. The vast inventory yards of large oil companies, such as those of ARAMCO, in Saudi Arabia stretch over dozens of hectares. This will be an unusual scene by 2025.

3D printing has implications for inventory management and transport costs.

  1. Inventory Management
    Holding inventory is expensive. Companies may no longer need to go to the expense of holding large inventories of certain types of goods, materials and spare parts.
  2. Transport Costs
    Today, transparent costs are a large percent of total costs of goods sold: goods are shipped by planes, trains, boat and mail. In additive manufacturing transport costs will be merely those of sending the specification electronically from the originator to a recipient firm’s 3D printer and the costs of materials to a recipient firm. This will surely result in a huge drop in the cost of transporting certain types of goods (not all).
There are those who claim that this will lower all costs of production, including labor and capital costs. Indeed the labor cost in additive manufacturing may be very small: A main labor cost will be those involved in devising and implementing the software protocols for shipment to 3-D printers.

Implications for sustainable growth

The implications for sustainable growth (see Chapter___) are fairly obvious. Additive manufacturing will help:

  • Conserve energy
  • Reduce waste
  • Reduce pressure on reserves of scarce non-renewable resources over time.

Implications for economics of scale

Economic students learn all about economies of scale in introductory Microeconomics course. Prior to 2014, if one needed a single wrench for changing tires, the manufacturer would first have had to make a mold, and then pour in the metal. To do this for one wrench would be outrageously expensive. But if the firm produces hundreds of thousands of these wrenches, it can pull down the costs with economics of scale.

But, with the 3D printer, even one item can be very cheap once the firm has a fully developed 3D printing process. To order a customized hip implant (one of a kind) one merely tweaks the software for hip implants generally and sends it along. It matters little whether one or 1001 of the implants are made. The cost may be low but will not decline much with numbers produced.

The implications for international trade could be very significant. Some traditional manufacturing firms in many countries large and small will go out of business. But the big question for emerging nations is:

How will countries with low wage cost be able to compete in trade when additive manufacturing is widespread? How could developed countries still use high import tariffs to protect local industry in such a world? Could trade sanctions such as those recently directed at Iran in 2014 work at all in such a world?

Questions & Answers

the diagram of the digestive system
Assiatu Reply
allimentary cannel
Ogenrwot
How does twins formed
William Reply
They formed in two ways first when one sperm and one egg are splited by mitosis or two sperm and two eggs join together
Oluwatobi
what is genetics
Josephine Reply
Genetics is the study of heredity
Misack
how does twins formed?
Misack
What is manual
Hassan Reply
discuss biological phenomenon and provide pieces of evidence to show that it was responsible for the formation of eukaryotic organelles
Joseph Reply
what is biology
Yousuf Reply
the study of living organisms and their interactions with one another and their environments
AI-Robot
the study of living organisms and their interactions with one another and their environment.
Wine
discuss the biological phenomenon and provide pieces of evidence to show that it was responsible for the formation of eukaryotic organelles in an essay form
Joseph Reply
what is the blood cells
Shaker Reply
list any five characteristics of the blood cells
Shaker
lack electricity and its more savely than electronic microscope because its naturally by using of light
Abdullahi Reply
advantage of electronic microscope is easily and clearly while disadvantage is dangerous because its electronic. advantage of light microscope is savely and naturally by sun while disadvantage is not easily,means its not sharp and not clear
Abdullahi
cell theory state that every organisms composed of one or more cell,cell is the basic unit of life
Abdullahi
is like gone fail us
DENG
cells is the basic structure and functions of all living things
Ramadan
What is classification
ISCONT Reply
is organisms that are similar into groups called tara
Yamosa
in what situation (s) would be the use of a scanning electron microscope be ideal and why?
Kenna Reply
A scanning electron microscope (SEM) is ideal for situations requiring high-resolution imaging of surfaces. It is commonly used in materials science, biology, and geology to examine the topography and composition of samples at a nanoscale level. SEM is particularly useful for studying fine details,
Hilary
cell is the building block of life.
Condoleezza Reply
what is cell divisoin?
Aron Reply
Diversity of living thing
ISCONT
what is cell division
Aron Reply
Cell division is the process by which a single cell divides into two or more daughter cells. It is a fundamental process in all living organisms and is essential for growth, development, and reproduction. Cell division can occur through either mitosis or meiosis.
AI-Robot
What is life?
Allison Reply
life is defined as any system capable of performing functions such as eating, metabolizing,excreting,breathing,moving,Growing,reproducing,and responding to external stimuli.
Mohamed
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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