3-D printing, or additive manufacturing, is no longer some far-fetched idea dreamed up by science fiction enthusiasts. The technology has already gained a lot of ground, and according to Wohlers Report 2014, the market is expected to grow by more than 31 percent per year between 2013 and 2020, eventually producing more than $21 billion in worldwide revenue.
So, how exactly does this technology work? In a nutshell, 3-D printing is a form of rapid prototyping and rapid manufacturing. To print a 3-D object, the manufacturer uses a 3-D computer-aided design (CAD) program to create a digital model that gets sliced into thin cross-sections called layers. During the printing process, the 3-D printer builds up successive layers of material until the entire object is completed.
3-D printing has gotten a big push from President Obama over the past few years. In his February 2013 State of the Union address, Obama asked Congress to back a $1 billion plan to support research into 3-D printing as a way to create U.S. manufacturing jobs. And just last December, he became the first president to be immortalized in a 3-D-printed bust, currently on display at the Smithsonian.
There's also something to be said about a technology that attracts industry giants Amazon and Apple. Last summer, Amazon launched its own 3-D printing store boasting the tagline "Shop the Future." Apple, on the other hand, has been quietly filing patents pertaining to 3-D printing.
While this is all fascinating stuff, is there a place for 3-D printing in the print and promotional products industry? Jim Corliss, owner of Braintree Printing, Braintree, Mass., seems to think so. "To some extent, we service the creative world, so 3-D is just another aspect of servicing creative people," he said.
Braintree Printing has the unofficial distinction of being the first printer to purchase a 3-D printer for the purpose of doing jobs. Approximately 16 months ago, the company installed a Stratasys Dimension 1200es unit, an entry-level model costing under $40,000. The machine, Corliss explained, has largely been used to create prototypes for design engineers in the manufacturing world.
"One of our customers designs a use-specific battery pack and we have printed prototypes of the battery case—a front and back piece that snap together," he noted. "This particular client comes to us again and again because they need to see various prototypes before finding the design that exactly meets their needs."
On average, Braintree Printing's 3-D printing sales have ranged anywhere from $100 to $1,000 per week. Sounds nice, but Corliss pointed out limitations that may give suppliers pause before entering this market. With a few exceptions (i.e., the battery producer customer), 3-D technology is best suited for prototypes of one-offs.
Then there's the issue of time. "The process by its nature is slow. It can take 10 hours or more to print an object the size of a deck of cards," Corliss shared. And cost? Corliss said plastic extrusion and other traditional fabrication technologies are able to produce the same object in seconds for pennies. It is important to note that equipment, particularly hobbyist units, has come down in price (e.g., the Printrbot Simple Maker's Kit Model 1405 3-D Printer retails for $349.)
The industry's reluctance to fully embrace the technology, however, means corporate gain for companies like Scott & Associates Inc., Chanhassen, Minn.
"We did a project for a client and the procurement group tried to source the 3-D printed item from another distributor, which they couldn't do—and didn't want to make the investment in the technology," recalled Joseph G. Scott, MAS, vice president. "We've got a pretty open field."
The marketing services firm got into the 3-D game two years ago when it began handling marketing work for Afinia, a manufacturer of desktop 3-D printers. Scott immediately saw the possibilities of creating short-run custom promotional products. Think bobblehead prototypes for suppliers and personalized keyrings.
"We sell keyrings in which the employees' names are 'cut,'" Scott said. "No one else can do this and our margin is around 90 percent."
Scott went on to talk numbers. "I think that distributors will begin using desktop 3-D printers to produce less-than-minimum runs of plastic promotional products," he commented. "On a typical 250-piece keyring order ($2.50 each on a C = $625 gross), with no competition, a distributor would receive about $250 in gross margin.
"If personalized promotional products are 3-D printed (much cooler than a keyring imprinted with a logo), that same $625 order will generate around $600 in gross margin, which includes the price of raw materials and labor," he continued. "That's what we do. Aside from the margins being really healthy, we control the production and create products that our competitors can't duplicate."
Corliss believes print providers interested in exploring 3-D printing can go one of two ways. The first route involves acting as a service bureau, offering to print 3-D objects from your customers' files. The target client, typically a design engineer in the manufacturing world, wants to see a few prototypes before production begins, Corliss cautioned. This requires a significant investment in 3-D devices.
"Different 3-D printers produce parts at different resolutions, in different sizes, using different materials," he said. "If you enter this market you will be competing with some well-entrenched competition—and this competition is often owned by the 3-D printer manufacturers."
Exploring and developing niche uses for 3-D printing is another direction print providers can take. "3-D technology is new, and new uses are being found every day," Corliss remarked. "This is potentially the more profitable direction to take and this is only limited by your vision."
At times, that vision might be muddied by budget concerns, time constraints and learning curves. But it's a low-level risk with a potentially high payoff when approached correctly. "3-D printed, personalized promotional products are a great way to keep customers interested and competitors confused," Scott concluded.