Research Paper on 3D Printing: Automotive Industry at Crossroads

Introduction

The automotive industry is an industry that has employed a digitalised supply chain due to the release of sleek and fast vehicles (Goehrke, 2018). The industry is faced with threats and are discussed using Porter's five force model. Michael E Porter developed this model to show the attractiveness and effect of the competition in the industry. The model shows the impact of new entrants, buyers, substitutes, suppliers and competitive rivalry of 3D printing materials.

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Key Players in the Addictive Manufacturing

In the automotive industry, General Motors was first to adopt 3D printing under its brands namely GMC, Chevrolet, Cadillac and Buick. The company is working in using this model to produce low-weight vehicle parts, with reduced mass and combining various parts. The company has unveiled a seat bracket that combines eight different parts into one 3D - printed part. The seat is 20% stronger and 40% lighter (Twentyman, 2018). BMW Group is another automotive industry that's has the technology running. The newly introduced i8 Roadster uses 3D- printed parts, MINI offers 3D-printed accessories and panels while Rolls-Royce has been operation since 2012. According to Said Jens Ertel, BMW Group's head, they are working on a plan to evaluate metals and plastics printing technologies (Twentyman, 2018). Ford Motor Company is working on the materials they are likely to use in the technology of 3D-printing. It has investments worth $65 million for Desktop metals and is soon starting production of larger size 3D printed car parts. Porsche Company manufactures eight parts using 3D printing and is looking forward to engaging the numbers up to 20 components (Twentyman, 2018).

Polymaker, A Chinese Company has leveraged its innovation in unveiling its first 3D printed car by 2019. The vehicle has a total of fifty-Seven plastic parts and compared to a conventional vehicle; it will help in reduction environmental production impact (Twentyman, 2018).

3D Printing Technology

3D printing opened its market in 1984 by prototyping new designs and inventions. In 2013, Jim Kor made 1st 3D printed vehicle named Urbee which had three wheels, hybrid engine and had the carrying capacity of 1,200 lbs (Popely, 2018). This invention was an eye-opener to the automotive industry thus unlocking the potential of producing full 3D printed vehicles. This kind of invention is believed to use disruptive technology. The industry uses disruptive technology in the day to day running of activities to gain a competitive advantage in the world of market share and also to become an attractive business in the industry. Disruptive Technology is a new or enhanced technology that displaces the existing one and creates a new product in the industry. This technology is applied to software, combined technology, networks and hardware.

Industry automakers have adopted 3D printing in the production of prototype vehicle parts, tools and also applied the technology in the manufacturing operations (Popely, 2018). Currently, only a handful of the replacement part is being produced to increase production in five years.

Marketing Strategy of the Disruptive Technology

The world is becoming digitalized on daily proceeds, especially for the automotive industry. The digitalization speed is what the automotive industry must adopt when dealing with sales, carrying out research, acquiring a new car or either adapting on the disruptive technology (R3social.com, 2018). The dealer's in the industry need to focus on the following marketing factors to enhance smooth market engagement.

The current generation is getting digitalized through mobile phones. There is a high preference for doing watching videos, doing searches and ads click on a mobile phone more than laptops. The disruptive technology can easily be adopted in mobile phone handsets and be available to first users of the handsets. The technology can be configured as an application on the handsets or by use of m-sites. Digital customers will easily get the content, and if the product has excellent features, there will be increased searches which in turn attract a large pool of people using the google search engine (R3social.com, 2018).

The industry can also use video content to influencer users and buyers; this is because many people are reluctant to read newspapers, magazine and newsletters. Customers are more satisfied to purchase a new product if there is an online video that provides clarification on the usage of the product. The video content should organise step by step on the evolvement of the product, provide answers to the question that is likely to arise and address any arising need (R3social.com, 2018).

Use of virtual showrooms also attracts a pool of potential product end-users. Buyers have the urge to compare prices of the vehicles in the market and need to take a comparison before calling it a deal. A potential buyer needs to be given a chance of exploring the car models in the market and granted an opportunity to have a test drive. For example, Audi model that uses 3D technology has a virtual showroom located in London where the visitors are let to tour and listen to the sound effect of each car model (R3social.com, 2018).

Buyers are more stubborn when deciding on whether to purchase the car or not, thus after doing searches and visiting showrooms they visit company websites to be sure what they saw is really what the company itself is knowledgeable. The industry ought to create a responsive website which provides more attention they could get if had visited in person. The response on the website should have the right content to have the buyer's attention captured (R3social.com, 2018).

Finally, personalization is another marketing strategy to be adopted. Drivers can increase their personalized experience by having an opportunity of using third party accounts on their smart devices. It also increases the ability of marketers to present tailored offers to potential buyers. For example, Jaguar Land Rover uses this application in a smart car to learn the driver's preferences and behaviours.

Advantages of 3D Printing Technology

The invention of Urbee opened the door to the invention of many 3D printed cars. By use of 3D printing technology, there is a quick and refined prototype stage in the automotive industry. When designing a new product more time is taken, and various alterations occur before settling for the final design. One of the greatest advantages of using this technology is producing various alternatives to the design a low cost (Warner, 2016). Companies can make a comparison of the physical models designed and be able to settle on which design to take up. For example, Bentley Motors Ltd uses 3D printing technology to create a miniature of the future vehicle.

The technology also aids in decreased cost of tooling. The process of 3D printing produces vehicles parts which are designed to perform multiple functions and cost of production is much cheaper (Archer Software, 2019). For example, Ford Company produced a several engine prototype in four days, and the cost was 99.4% cheaper. The same design takes around four months, and the cost is much higher using traditional manufacturing.

There is improved fuel efficiency for the models designed using 3D printing technology. 3D printed cars have reduced weight thereby decreasing its density, and this factor improves vehicle mileage and making it fuel efficient (Warner, 2016). The technology also employs production of cars which are custom printed. The 3D process has opened doors of printing and assembling automotive parts on demand and customers receives a tailored product that is fully functional (Warner, 2016).

Challenges of 3D Printing in the Automotive Industry

The application of technology produces lower volumes than when using the traditional method of manufacturing. The process is work in progress which aims to have customised end products rather than mass production (Archer Software, 2019). Besides, the production of large-sized parts can be done on a modular basis thus faced with the challenge of building sizes. Research on building large-sized part is being developed by use of Big Area Additive Manufacturing.

There skills gap for additive manufacturing. This gap can be filled by partnering with private training institutions and universities to ensure there is a pool of skilled, talented individuals.

Market Competition

3D printing seems to take a positive turn in future as more functional components are brought to existence. The main market competitor of 3D printing is the production of electric cars which have exterior components similar to 3D printed cars. Chinese Company Polymaker and Italian Electric Vehicle Manufacturer X Electrical Vehicle (XEV) have scheduled to release an electric car in 2019 which have reduced production impact to the environmental. The car will use the conventional method only for windscreen, chassis and tyres (Warner, 2016).

Conclusion

The use of traditional manufacturing in the automotive industry is gone. 3D printing technology has enabled automotive companies to adapt and succeed in the changing technological environment (Goehrke, 2018). Automotive market of 3D is projected to rise due to factors owing to reduced production cost and development time and proficient utilisation of raw materials (Warner, 2016). Every manufacturer needs to take up the technology or else its future survival is at the edge.

References

Archer Software. (2019). How is 3D Printing Used in the Automotive Industry? Retrieved from https://www.archer-soft.com/en/blog/how-3d-printing-used-automotive-industry

Goehrke, S. (2018). Additive Manufacturing Is Driving the Future of the Automotive Industry. Retrieved from https://www.forbes.com/sites/sarahgoehrke/2018/12/05/additive-manufacturing-is-driving-the-future-of-the-automotive-industry/#3f29dcce75

Popely, R. (2018). 3D printing technology shakes up parts production for automakers, suppliers. Retrieved from https://www.autonews.com/article/20181022/RETAIL05/181029991/3d-printing-technology-shakes-up-parts-production-for-automakers-suppliers

R3social.com. (2018). 5 Digital Marketing Trends for Automotive Industry in 2018 - R3Social. Retrieved from https://r3social.com/5-digital-marketing-trends-for-automotive-industry-in-2018/

Twentyman, J. (2018). Five automakers motoring ahead with 3D printing | Internet of Business. Retrieved from https://internetofbusiness.com/five-automakers-motoring-ahead-with-3d-printing/

Warner, D. (2016). How 3D technology is transforming the auto industry. Retrieved from https://hpmegatrends.com/how-3d-technology-is-transforming-the-auto-industry-a3b6cd857d