economic analysis of additive manufacturing for final products

Session B6 

3039 

ECONOMIC ANALYSIS OF ADDITIVE MANUFACTURING FOR FINAL 

PRODUCTS: AN INDUSTRIAL APPROACH 

Garrett White (gjw14@pitt.edu, Budny, 4:00), Daniel Lynskey (dkl10@pitt.edu, Bon, 6:00) 

Abstract—Additive manufacturing (AM) techniques used to 

create end-usable products introduce many new 

possibilities, both in design, manufacturing, and the 

economic state of industry. This paper will evaluate additive 

manufacturing in an effort to show whether or not the 

technology is, in fact, capable of economically producing 

“an industrial revolution for the digital age” [1]. AM hosts 

a potential to change the current state of manufacturing, 

service and distribution by its ability to create unique and 

highly complex products in an economical manner. This 

paper focuses on the potential economic benefit of using 

additive manufacturing in application to end-useable parts 

by comparing aspects such as cost of production, supply 

chain infrastructure, and sustainability of traditional 

subtractive technologies with additive manufacturing 

technologies. 

To justify the economic potential, it will include 

information on many possible benefits that AM poses that 

make a clear economic impact; including the reduction of 

waste, the ability to achieve mass customization, the 

shortening of the supply chain and time of production, and 

redesign techniques that spawn optimized components that 

traditional techniques cannot generate. Sustainable 

development will also be discussed, because of the ability of 

AM to enhance the economic sustainability of industry. 

There are many currently noticeable benefits of AM that are 

both environmentally and economically effective and the 

economic effects will be discussed in detail. The paper will 

also cite a case study, published in The International 

Journal of Advanced Manufacturing Technology, in which 

the cost of production of a particular aeronautical part is 

analyzed using both traditional and AM processes. By 

reviewing and analyzing this information, this paper will 

detail the economic benefits and limitations currently behind 

this process: additive manufacturing. 

Key Words— Additive manufacturing economics, Additive 

manufacturing cost analysis, Additive manufacturing 

industry, Additive manufacturing of metal parts, Additive 

manufacturing product redesign, Rapid manufacturing 

economics. 

INTRODUCTION 

Additive manufacturing, also known as rapid 

manufacturing or 3D printing, is a relatively new 

manufacturing process that is a popular topic in engineering 

today. This process is still in its infancy as a true 

manufacturing process, previously used only for rapid 

prototyping, but it is receiving attention as a potential 

technology that eliminates many limitations of traditional 

manufacturing processes such as injection molding, milling, 

or casting. In fact, researchers have hailed it as a potential 

“industrial revolution for the digital age” [1]. The process is 

revolutionary, as it builds digital designs from the bottom 

up, and requires no tooling whatsoever to produce 

structurally valuable products. 

The website that endorses additive manufacturing 

describes the process simply by stating, “Additive 

Manufacturing (AM) is an appropriate name to describe the 

technologies that build 3D objects by adding layer-uponlayer 

of material” [2]. Although the material being used can 

differ between polymers, ceramics, glass and even metals, 

all types of AM begin by using 3D modeling software or 

Computer Aided Drawing (CAD) in order to produce a 

digital design of the part or product. This design is sent to 

the additive layer manufacturing machine, where software 

then divides the three dimensional design into hundreds of 

cross sectional geometric areas, typically ranging from 

0.01mm to 0.25mm in thickness, that are each located at a 

given height relative to the previous layer [3]. The additive 

machine then processes these cross-sectional layers and 

prints each successively, one on top of the last, resulting in 

an extremely precise three dimensional product [4]. 

There are different types of AM that build and layer the 

material in different ways. Some AM processes, such as 

electron beam melting and selective laser sintering, involve 

the use of high power lasers that melt and sinter powder 

based material (typically metals). Some types of AM, like 

multi-jet modeling, use an ink-jet type nozzle that dispenses 

layers of molten material (typically polymer), which then 

hardens. Other types of AM, namely 3DP, involve the use of 

a binder that is sprayed onto a powder bed of material, 

which solidifies the material [2]. Although these processes 

vary, “the net result is the same: a solid, tangible 

representation of the original computer data, with no mold 

tooling, no machining, no jigs to hold the work in place, no 

fixtures, and no manual intervention required” [5]. Because 

of this bottom-up building procedure that does not rely on 

molds or tooling, one additive machine can produce 

whatever design is sent to it, instead of producing only one 

specific part. Therefore, this process grants designers and 

manufacturers many new opportunities to recreate the 

production process of end-usable parts. 

Unique opportunities include the ability to utilize mass 

customization of products, realign the supply chain, redesign 

to improve structural integrity and efficiency, revolutionize 

the sustainability of manufacturing, and reduce overall cost 

of production. These opportunities are all related to 

improving the economic efficiency of the manufacturing 

University of Pittsburgh 

Swanson School of Engineering 1 April 13, 2013

Garrett White 

Daniel Lynskey 

process; one of the main goals of Industrial engineers 

everywhere. In this case, the improved economic aspects 

include not only monetary costs, but also the production, and 

distribution of these goods. AM introduces the ability to use 

mass customization in a way that no traditional method has 

ever allowed. AM also creates flexibility in another focus of 

industrial engineering, the supply chain. AM processes also 

encourage product redesign techniques that can noticeably 

change the amount of material consumed, and can also 

improve structural integrity of each part. All of these 

changes to traditional manufacturing techniques limitations 

obviously also reduce a vital portion of economic efficiency- 

- the cost of production. Along with affecting economic 

aspects of the industry, AM also enhances the sustainability 

of the traditional manufacturing process, in environmental, 

social, and economic dimensions. While AM is currently not 

a perfected process, the potential benefits it could bring to 

the economics of the manufacturing process are certainly 

noticeable. 

ADDITIVE MANUFACTURING ENABLING 

MASS CUSTOMIZATION OF PRODUCTS 

One of the benefits of AM is that the manufacturing 

process does not involve the use of molds or extra tooling to 

create different products. The AM process involves taking a 

CAD design of the product and printing it out layer by layer, 

building the product from the bottom up. On the other hand, 

when using typical traditional manufacturing techniques, 

such as die casting or injection molding, to create a new 

product, the manufacturers must first create a new mold. 

Since AM does not require different molds for different 

products, manufacturers find a unique capability to utilize 

varying designs on the same AM machine. In effect, AM 

technologies could change the paradigm for manufacturing, 

moving away from mass production in factories and high 

costs, to mass customization and distributed manufacture 

[6]. Mass customization is the ability to create 

individualized or personally customized products without 

increasing the cost or time of production. The impact of 

mass customization on production is extensive, and “could 

be thought of as a key driver for the agile supply chain 

paradigms prominence in manufacturing business thinking 

worldwide” [7]. Consumers today are consistently 

demanding new, quality, and unique products. The ability to 

change each product to consumer desires or needs greatly 

increases the buyer’s sense of satisfaction in the product. In 

some cases, however, application of mass customization 

satisfies more than the customer’s desire for individualized 

products, and creates parts of higher quality for personal use. 

Applications of mass customization in industry today 

The capability of producing low-cost, high variety 

products has become increasingly important in many product 

areas, such as the western automobile industry. In order to 

“compete with lower-cost imported vehicles, western 

manufacturers have found it necessary first to change their 

operational model to compete with far east suppliers and 

secondly seek competitive advantage in the area of mass 

customization” [7]. With AM, consumers could theoretically 

request specific designs for their vehicle to the 

manufacturers, who can then apply these designs to the 

structure of the vehicle. It would not require the production 

of a new mold, lowering cost and saving resources. 

However, there are current limitations to this idea. 

Researchers at Loughborough University in the UK note 

that, “the constraint of the materials that are used to produce 

a tailored product means that currently, it would not be 

possible to produce a one off car in the same time as a mass 

custom vehicle at the same price” [7]. Mass customization 

with additive manufacturing also has several medical 

applications, being used for the creation of custom medical 

devices. One example is the production of custom fitted 

hearing aids. Normally, these devices must be handcrafted 

by a skilled technician, made to fit each patient. However, 

with additive manufacturing, it is possible to make a wax 

mold of the patient’s ear, and use a 3D scanner to digitalize 

the impression, creating a digital model which can then be 

printed. This same idea is viable in application to the dental 

industry, which also relies heavily on custom fit dentures, 

implants, retainers and other pieces. AM technology is also 

being used in tissue engineering, and even prosthetics 

development [4]. Although the application of AM in these 

fields is a very important topic, there is simply too much 

information on the different processes for this paper to 

cover. Mass customization brings about an enormous change 

in the traditional manufacturing process, and has many 

benefits. Each of these applications enhances consumer 

satisfaction, either because of personal desire, or health 

improvement. Because AM does not require the production 

of new molds, and can produce items on site, it can save 

businesses time and money, and has a considerable effect on 

the supply chain. 

ADDITIVE MANUFACTURING 

AFFECTING THE SUPPLY CHAIN 

One of the main focuses of industrial engineering is the 

idea of supply chain management. Supply chain 

management is focused on the storage, movement, and 

distribution of raw material, mid-process parts, and endusable 

parts. A sustainable supply chain is one that 

eliminates waste in each of these aspects, and AM has the 

ability to create such a supply chain. Two types of supply 

chains that are heavily discussed in industrial engineering 

today include the lean supply chain, and the agile supply 

chain. Firstly, “The lean paradigm of supply chain 

management encompasses the idea of reducing waste 

throughout the supply chain” [7]. In most cases, this 

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reduction of waste involves the reduction of time of 

production and distribution, material used, or cost of 

production. The lean supply chain is typically used for 

commodities and products that are continually in demand. 

The next type, the agile paradigm, “means using market 

knowledge and a virtual corporation to exploit profitable 

opportunities in a volatile market place” [7]. In other words, 

the agile supply chain focuses greatly on reduction of lead 

time of production, and is used for fashionable or trending 

products that have a short product life cycle. 

Impact on agile supply chain management 

Additive manufacturing shows potential to be extremely 

disruptive to these two supply chain paradigms. First, for the 

agile supply chain paradigm, AM benefits are quite 

realizable. In the agile supply chain, it is essential that 

manufacturers are able to quickly respond to demand 

change, whether that includes volume change or product 

change [8]. AM can potentially condense lead times of 

production, because of the machines’ ability to produce any 

part by processing a digital file, and building from the 

bottom up. This means, just as in the idea of mass 

customization, that manufacturers can produce a multitude 

of different parts from one machine. In effect, whichever 

part is required can be locally manufactured, eliminating the 

need to outsource the production of specialty parts. This, in 

turn, reduces long lead times of transportation. AM also 

reduces time of production in a more literal way because of 

its ability to begin producing a part immediately after the 

CAD design of the product has been finished. Using 

traditional methods to create a new product typically 

requires weeks of time in order to produce the necessary 

tooling before production can even begin [9]. Furthermore, 

AM presents the idea of products that can essentially be 

made-to-order, which is extremely valuable for products that 

are volatile. Instead of traditional manufacturing techniques 

that require large batch sizes to become economical, AM can 

economically produce batch sizes of one (or low to medium 

volume), reducing the possibility of producing a surplus of 

products. 

Impact on lean supply chain management 

Benefits regarding the lean paradigm of supply chain 

management are also tangible with the use of AM. As 

previously mentioned, the lean paradigm is chiefly 

concerned with the reduction of waste in material, cost, and 

time of production. Furthermore, in traditional 

manufacturing methods one of the greatest costs incurred by 

the producer is due to the cost of the tooling. Eliminating the 

need for tooling parts drastically reduces the overall cost of 

production, which effectively reduces waste of money. 

Along with affecting the agile supply chain, relocation of 

manufacture also affects the lean supply chain. The ability to 

produce many different specialized products from one 

machine is space saving, and it eliminates the need for 

international export or import. This idea can drastically 

reduce the cost of logistics, subsequently reducing the cost 

of production. The reduction of wasted material is also 

conceivable with additive manufacturing processes, because 

scrap rates are greatly reduced. Additive layering machines 

only use the amount of material that is required in the 

finished product, unlike traditional subtractive techniques, in 

which the product is cut out of a block of excess material. 

Reducing wasted material has connection to sustainability in 

the most literal sense, because this material is being 

preserved. Yet another effect AM could bring to the lean 

supply chain is in an area in which manufacturing companies 

often find excess and unnecessary cost and waste: the 

storage of spare and stock parts. 

Reduction of stockpile size 

Additive manufacturing’s ability to create a batch size of 

one is a unique ability to this technology that could truly 

make an important impact. One inherent cost that 

manufacturers face today is the cost required to keep a 

stockpile of spare parts. Particularly in the aerospace 

industry where, “nothing is more expensive than an airliner 

on the ground”, stock of spare parts is very important [10]. 

However, most large aircraft made today can involve up to 4 

million components, and warehouses large enough to hold 

these parts in stock are rare, and very expensive. For 

example, The Material Support Centre of Airbus Industrie in 

Hamburg-Fuhlsbüttel has a warehouse capacity of 36,000 

square meters [10]. Although it is important to have spare 

parts on hand for timely repair of equipment, many of these 

parts are very infrequently used, and lead to a waste of 

warehouse space and logistics costs. Furthermore, in the 

aircraft industry, many parts become obsolete with the 

innovation of new equipment, or have a short shelf-life. 

Another large problem in the aircraft industry is that 

once a new plane makes its maiden flight, most of its 

geometries change due to different conditions in the sky 

[11]. This means that stock parts are occasionally unusable. 

The ability to create different parts on demand would 

seemingly eliminate the restrictions of stock parts. However, 

traditional manufacturing techniques are economically 

inefficient for this, as these machines have large start-up 

cost, and require expensive tooling. This is where AM 

techniques are being implemented, because of their unique 

ability to produce multiple different parts on one machine. 

The only material stock then required is the raw material that 

is required to produce the part [7]. Instead of requiring an 

expansive stock of parts that can easily go unexploited, 

manufacturers using AM can ‘hold a stock’ of digital CAD 

files, which can be used at any time to create the part needed 

in an economical and timely manner. These CAD files can 

also be edited to compensate for unique properties of 

individual planes. The unique abilities that AM processes 

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provide can greatly reduce this inherent expense, once again 

leading to a lower overall cost of production. 

UTILIZING PRODUCT REDESIGN IN 

CREATING PRODUCTS 

One of the most innovative benefits of additive 

manufacturing is its ability to create complex geometric 

structures without wasting any raw materials. As discussed 

earlier, one of the major problems with subtractive 

manufacturing is the need for use of molds, or a billet of 

excess material. In order to create a structure using 

traditional manufacturing techniques such as casting or 

injection molding, the raw materials are formed in a mold 

and then some of the material must be removed. The need to 

be able to remove the part from the mold creates a limitation 

for molding methods. One such limitation is that, “the part 

must have slightly outward sloping surfaces (called positive 

draft), as inward sloping surfaces would essentially lock the 

part to the mold like a dovetail making it impossible to remove” 

[4]. Molds must also typically allow for mold division lines 

and excess scrap, which must typically then be buffered out of 

the final product. Along with this, when product designs change 

to a more complex and functional shapes, this means the mold 

or tooling must also change, causing great cost. Traditionally 

built products also find limitation in complexity of geometries. 

For example, many parts used in engines require significant use 

of cooling channels. Using traditional methods, “cooling 

channels could only be drilled through molds in few key 

places and only in straight lines”; creating corners with 

inefficient fluid flow [4]. Traditional methods are sub-par 

in creating any sort of internal geometry, because of the need 

to eventually remove molding pieces or tooling holds. These 

limitations can seemingly be eliminated by the freeform 

abilities of AM technologies, building each part from the 

bottom up. 

Producing complex geometries 

The goals of design for additive manufacturing can be 

described as to “maximize product performance through the 

synthesis of shapes, sizes, hierarchical structures, and 

material compositions, subject to the capabilities of AM 

technologies.” [9] There are a few ways in which AM could 

help to reach these goals. Firstly, with AM “it is possible to 

design part with unlimited complexity, allowing twisted and 

contorted shapes, blind holes and screw, and very high 

strength-to-weight ratio” [9]. As mentioned above, 

traditional methods are often limited by straight line drilling, 

which results in inefficient cooling channels. Since AM 

methods build from bottom up, optimized free-form internal 

channels and structures can be produced. Ideally shaped 

cooling channels can be integrated into design for higher 

product performance. Also, with AM it is possible to 

combine separate parts into an integrated assembly, which 

minimizes the part count while making assembly simpler 

and faster. This idea involves the integration of pumps, fluid 

channels, pistons, and perhaps even electronic pieces, 

directly into the core of the part, without the need to 

manually assemble the part. One other application of AM 

abilities to create very precise and free form structures can 

be shown with a simple example. “When complex organic 

structures such as wood or bone are examined it is striking 

how structural material is only used where it is needed (i.e. 

where there is a stressor)” [4]. There is internal empty 

space, although the integrity of the entire piece remains, as it 

still functions as a whole. Although this idea could never be 

realized by traditional techniques, it can be applied to the 

redesign of AM parts, with the use of internal lattice 

structures. Commonly used in the design of bridges, lattice 

structures involve geometric patterns, such as hexagonal (or 

honey-comb) structures, crossing structures, or triangular 

structures, that provide support only in areas that the product 

is under stress. These internal lattices can potentially greatly 

reduce the amount of material consumed, while upholding or 

even improving the strength of the structure as a whole. 

Lightweighting of parts 

Product lightweighting is the idea of manufacturing a 

product by using as little raw material as possible, but still 

maintaining the structural integrity of that product. As 

stated before, AM can create highly complex geometric 

structures, such as internal lattices, that can reduce the 

amount of consumed material. By applying this technique 

manufacturers can save a large amount of material used, 

extending the amount of available resources [12]. Since 

there is less material being used, it takes less time to process 

the material thus resulting in faster build times. A higher 

throughput is one benefit of this technique [12]. Also, if 

these lightweight parts are used in automobiles or aircraft, 

one can notice a drastic reduction in fuel consumption. A 

lighter vehicle requires less fuel, which is a focus of most 

car and aerospace manufacturers today. Fuel efficiency is an 

important aspect in sustainability. A fuel-efficient vehicle is 

not only good for the environment, but it will also save the 

consumer money, and help to preserve our fuel sources for 

as long as possible. 

ADDITIVE MANUFACTURING AS A 

SUSTAINABLE PROCESS 

Sustainability is an extremely important topic in modern 

engineering ethics. It is a broad topic, but can basically be 

described as getting as much use out of as little resources as 

possible. It is said that in order to achieve truly sustainable 

product design, the manufacturing process must consider 

economics, environmental awareness, and social 

sustainability. An ideal product is one that involves all three 

of these areas of sustainability [3]. With the help of AM, 

such a product can be created. 

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Impacts on environmental sustainability 

One of the main focuses of the sustainable movement 

today is on the environment. Above all, sustainability 

focuses on preserving a healthy environment that will allow 

human life to continue flourishing. Attempting to create 

such an environment while also developing new 

technologies involves the reduction of energy consumption, 

and material consumption. AM machines have the potential 

to reduce the amount of energy used in the manufacturing 

process. First of all, as previously mentioned, having a rapid 

manufacturing machine on site eliminates the need for 

transportation, therefore greatly reducing the amount of fuel 

used. Even if the AM machine cannot be located on site, if 

it is being used to produce light weight products it will be 

significantly more energy efficient to transport the items 

because “lighter structures require less energy to move” 

[12]. The United States Department of Energy, “anticipates 

that additive processes would be able to save more than 50% 

energy use compared to today’s ‘subtractive’ manufacturing 

processes” [13]. It is also stated that typical subtractive 

methods such as CNC (computer numerical control) milling 

often find scrap rates as high as 95% when milling from a 

block of existing material [14]. This number can be 

significantly reduced by the bottom up approach of AM. The 

goal of product redesign for AM is to recreate products in 

the most efficient ways possible. This can be done by 

utilizing AM abilities to create complex interior structures 

and reducing the amount of waste in the process. Since, 

ultimately, less material is used, AM can prove to be very 

cost effective. 

Impacts on social sustainability 

The social dimension of sustainability involves 

improving the quality of life of humans, through healthrelated 

advancements, increased consumer satisfaction, and 

financial improvement. Additive manufacturing poses the 

ability to make changes to each of these realms. First, in 

health-related fields, AM shows perhaps even more promise 

than one would immediately think. Although not discussed 

at length previously in this paper, AM does possess unique 

capabilities to produce very high quality devices for human 

health improvement. In the Bioengineering field, AM is 

currently being researched as a possible means to create very 

high quality scaffolds, for skin and organ regeneration. 

Scaffolding requires very precise structure, which AM can 

produce unlike any other manufacturing process before. On 

top of this, AM is also being used for custom-fit prosthetics, 

because of its ability to create unique products. Along with 

prosthetics, other medical devices, such as custom-fit 

hearing aids, orthopedic implants, and dental braces [3]. 

Beyond medical advances, AM also provides the ability to 

greatly change customer satisfaction. As previously 

mentioned, “consumers are becoming increasingly refined in 

their tastes and desires for new products” [7]. AM processes 

make mass customization viable, which would obviously 

greatly impact a customer’s sense of satisfaction. Most 

consumers typically enjoy individualized products that are 

geared towards their own desires. Since AM machines 

require only a 3D digital model of the product to create it, it 

is even possible for consumers to become their own 

designers. This is a vast concept that would revolutionize 

consumer satisfaction. Increased customer satisfaction not 

only benefits consumers, but also benefits the producers, 

because of potential increase in sales. Increase in sales is 

something that all producers are currently striving for, in an 

attempt to stabilize the American economy. 

Impacts on economic sustainability 

Sustainable economics are yet another focus of the 

sustainability motion, and nearly all other aspects of 

sustainability can be indirectly connected to economics, as 

well. The economic dimension of sustainability involves 

present actions that will allow for future generations to enjoy 

equal or greater wealth, welfare, and consumption abilities. 

AM is perhaps most disruptive here, because of its ability to 

revolutionize manufacturing economics. Each of the topics 

previously mentioned in this paper discuss some of the 

economic changes AM brings about. These changes would 

be effective for the long-run of the manufacturing paradigm 

we see today. As far as wealth preservation is concerned, 

AM also shows the ability to greatly change overall cost of 

production. 

COST ANALYSIS OF ADDITIVE 

MANUFACTURING 

The previous sections in this paper focus on effects that 

additive manufacturing of end-usable parts could bring to 

the economy of an industry. Each of these topics has been 

related to the production and distribution of parts, but they 

each also have connection to the actual cost of production. 

For example, using mass customization techniques in AM 

production leads to a higher rate of customer satisfaction [7]. 

Although customer satisfaction does not affect the cost of 

production of each part, it does lead to more purchases, 

which obviously leads to more revenue for the producer. 

This revenue then allows the manufacturer to pay for the 

costs of production. Next, lightweight parts created with the 

use of product redesign make an obvious economic impact. 

In particular application to the aircraft industry, a lower 

massed part can lead to astronomical differences in fuel 

consumption, and therefore cost. A consortium based in 

Germany and consisting of Laser Zentrum Nord (LZN) 

GmbH, the Institute of Laser and System Technologies 

(iLAS) of Hamburg University of Technology, and Airbus 

Operations GmbH, has shown, “Eliminating 100 kg (220 

lbs) is said to save an airline $2.5 million annually in fuel 

costs for short haul flights” [14]. Along with this reduction 

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in weight, the use of AM aims to drastically reduce scrap 

material, as previously discussed. In the aerospace industry, 

it is common to mill parts out of large billets of aluminum or 

titanium metal. This process, as stated previously, leads to 

scrap rates of 95% [14]. Although this scrap is most likely 

recycled and used, this requires energy and money. To be 

ideally sustainable, the AM process would eliminate the 

need to recycle scrap, instead, only using the exact amount 

of required material. Reducing waste leads to the idea of 

supply chain management, which also affects the cost of 

production. As previously mentioned, the ability of the AM 

machine to produce a multitude of different parts can bring 

manufacturing back to a local scale, instead of outsourcing 

for specialty parts. This leads to a reduction in the use of 

transportation, leading to overall lower logistics costs. Yet 

another cost saving can be seen because of the fact that AM 

eliminates the required tooling that traditional methods have 

used. A particular case study showed the effect of the 

eliminating the cost of tooling, and other repercussions of 

AM techniques. 

Case study 

In order to quantitatively display the effect of additive 

manufacturing processes, Eleonora Atzeni and Alessandro 

Salmi (Department of Management and Production 

Engineering, Politecnico di Torino) have conducted a case 

study that focuses on an aeronautical part. This case study 

focuses on the production of, “a main landing gear of a scale 

1:5 model of the Italian aircraft P180 Avant II by Piaggio 

Aero Industries S.p.A.” [9]. In this study, cost models of 

production of this part were studied both in application to a 

traditional manufacturing technique (high pressure die 

casting) and an additive manufacturing technique (selective 

laser sintering). To view these cost models, please view 

appendix A and appendix B. In the cost analysis of the 

production, many factors are considered when creating a 

cost model. This analysis includes production volume, 

material cost per part, mold cost per part, processing cost per 

part, and post processing cost per part. For the case of the 

die cast part, the costs of each factor was given by a quote 

from the existing manufacturer of the part. When analyzing 

the part made by selective laser sintering, the part was first 

redesigned to benefit from unique AM opportunities. It was 

designed to reduce material consumption, use freeform 

designs and hollow structures, and lower energy usage, all 

while keeping part strength in mind [9]. 

The results provide an outstanding quantitative 

description of the current state of AM, including its benefits 

and its limitations. One major idea lies in the fact that no 

matter the volume of production, the cost per part of the AM 

technology remains constant (in this case, at 526.31 euros), 

whereas the cost with traditional techniques depends heavily 

on the volume of production. A figure produced by this case 

study depicts the situation in an understandable manner: 

FIGURE 1 

Breakeven analysis comparing conventional high pressure 

die casting (HPDC) process with selective laser sintering 

(SLS) technique [9]. 

This plot effectively shows that AM used for low-medium 

batch sizes of production is currently capable of being highly 

economical, while traditional methods still prevail for very 

large volumes. In certain industries, however, low and 

medium batch sizes are often used, especially when the 

products being produced are of high value. This is evident in 

the aerospace industry. The other application one must 

consider is for the use of customized products. The cost with 

an AM machine would remain constant, or close to constant, 

so long as the amount of material consumption remained 

relatively steady, whereas with traditional techniques, prices 

would skyrocket any time a new mold was required. It is 

evident that at the current stage in technology, AM has both 

benefits and limitations. To see the case study in its entirety, 

please view appendix C. 

Current limitations of additive manufacturing 

Although many of the ideas previously discussed can 

lead to a reduction in cost and a better economic state of the 

industry, AM processes today still have many limitations. 

These limitations can be seen by studying a particular 

machine; the Vanguard Selective Laser Sintering Machine. 

“The maximum build envelope [for this machine] is 370 x 

320 x 435 mm”, which can limit the size of parts it is 

capable of producing [10]. However, the main limitation 

AM faces, as many new technologies do, is the actual cost of 

the AM machine. These machines are still relatively new, 

especially when considering machines that are capable of 

producing end-usable parts. For example, the Vanguard 

Selective Laser Sintering machine (capable of producing end 

usable parts) costs about 320,000 US dollars [10]. 

Obviously, these machines require a large initial investment, 

but would eventually pay themselves off. Along with this 

cost, another limitation is the cost of material incurred with 

use of AM. Although only the material required to build the 

part is used, getting the raw material into a usable form for 

an AM machine can occasionally be challenging. This is 

seen mainly when dealing with 3-D printing of metals, 

because of the need to utilize powderized metals. This 

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process of powderizing metal is relatively new, and is still 

not perfected (in an economic sense). However, although 

AM certainly has its current limitations, many experts 

believe that in a few years, with some research, this 

technology will be capable of even greater things than it is 

now. Today, it is viewed as a manufacturing technology of 

tomorrow, and that is why so many people are showing real 

interest in this process, and supplying researchers with startup 

investments. 

INVESTMENT BY THE U.S. GOVERNMENT 

Common to all new technologies is the need for start-up 

investment. There are a number of different sources for startup 

investments, including private sources and occasionally 

the government. Governmental investment is typically only 

made towards new processes or technologies that show great 

promise for the future of the government’s people. Additive 

manufacturing is a process that can revolutionize 

sustainability in the industry, and revive the industrial 

economy of a country, and the U.S. Government has 

recognized this. Very recently, the U.S. Government made a 

significant investment towards research in the AM field, to 

start up the National Additive Manufacturing Innovation 

Institute (NAMII) in Youngstown, Ohio. NAMII is a 

research partnership headed up by the National Center for 

Defense Manufacturing and Machining, and involves 40 

companies, 9 research universities (including the University 

of Pittsburgh), 5 community colleges, and 11 non-profit 

organizations. This initial investment, part of President 

Barack Obama’s $1 billion plan aimed “to catalyze a 

national network of up to 15 manufacturing innovation 

institutes around the country” totaled $30 million [13]. This 

was followed by an additional investment of $45 million by 

five federal agencies - the Departments of Defense, Energy, 

and Commerce, the National Science Foundation, and 

NASA. Along with this came another “$40 million from the 

winning consortium, which includes manufacturing firms, 

universities, community colleges, and non-profit 

organizations from the Ohio-Pennsylvania-West Virginia 

‘Tech Belt.’” [13]. In the State of the Union address of 2013, 

President Barack Obama referenced the investments in AM, 

stating “A once-shuttered warehouse is now a state-of-the art 

lab where new workers are mastering the 3-D printing that 

has the potential to revolutionize the way we make almost 

everything” [15]. These investments and focus from the 

government show that this technology is currently 

developing and growing, for reasons discussed above. The 

U.S. Government, like the National Society for Professional 

Engineers, holds the public welfare paramount, and seeks to 

see this technology used at its highest capabilities. As 

previously stated, AM currently has a number of limitations, 

but as with most technologies, these limitations can be 

altered or eliminated with further research. This is the effort 

of these investments made by federal government, in an 

attempt to reap the benefits of AM used in industrial 

application, for the production of end-usable parts. 

CONCLUSIONS AND THE FUTURE OF 

ADDITIVE MANUFACTURING 

Although it is clear that additive manufacturing 

technologies are not currently perfected, and traditional 

subtractive techniques are more economically viable in 

many situations, AM is a disruptive process that is receiving 

great attention. Attention to this topic is warranted, as there 

are many potential benefits that could be realized with the 

use of AM in production of end-usable parts. Perhaps the 

most important impact, the sustainability of the 

manufacturing industry can be boosted in economic, 

environmental, and social terms. Particularly in fields such 

as the medical, dental, automobile, and aerospace industries, 

the advent of these processes is already beginning to appear. 

These are industries in which mass customization, 

lightweighting of parts, and shortening of the supply chain 

are economically valuable. With further research and 

development of currently surfacing AM technologies, one 

could see the use of AM in these fields much more 

frequently. Although it is not suggested that AM will 

completely replace the use of molds, casting, and milling 

techniques, it is suggested that many more facilities will be 

dedicated to the use of AM machines in the future [11]. 

Additive manufacturing has already displayed many unique 

opportunities in production that demonstrate positive change 

towards a sustainable manufacturing industry. Traditional 

techniques could never achieve many of these advances, and 

with more investment of time and money into the research of 

this process, it is clear that the growth of the technology will 

continue and additive manufacturing will become an 

important process in a sustainable industry of tomorrow. 

REFERENCES 

[1] A. Baldwin, C. Bell, M. Rooney. (2009). “Innovation 

with Impact: A Manufacturing Revolution.” Innovative 

Manufacturing and Construction Research Centre. (Online 

Article). 

[2] Additive Manufacturing .com. (2012). “What is Additive 

Manufacturing” additivemanufacturing.com. (Online 

Article). http://additivemanufacturing.com/basics/ 

http://www.lboro.ac.uk/eng/research/imcrc/downloads/imcrc 

-brochure.pdf p.9 

[3] O. Diegel, S. Singamneni, S. Reay, A. Withell. (2011). 

“Sustainable product design through additive 

manufacturing” Asian International Journal of Science and 

Technology in Production and Manufacturing Engineering. 

(Online 

Article). 

http://www.aijstpme.kmutnb.ac.th/index.phpoption=com_jd 

ownloads&Itemid=1&view=finish&cid=187&catid=20&m= 

0 

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Garrett White 


[4] T. J. Horn, H. Ola. (2012). "Overview of current additive 

manufacturing technologies and selected applications." 

Science Progress. (Online Article). DOI: 

http://dx.doi.org/10.3184/003685012X13420984463047 

[5] P. Reeves (2008). “How rapid manufacturing could 

transform supply chains” Supply Chain Quarterly. (Online 

Article). 

http://www.supplychainquarterly.com/topics/Manufacturing/ 

scq200804rapid/ 

[6] Additive Manufacturing Special Interest Group. (2012). 

“Shaping Our National Competency in Additive 

Manufacturing” Innovate UK Materials Knowledge Transfer 

Network. (Online Article). 

https://connect.innovateuk.org/c/document_library/get_file 

uuid=3e6091f6-6874-4dc5-80ead565249cce45&groupId=47343 

[7] C. Tuck, R. Hague. (2006). “The Pivotal Role of Rapid 

Manufacturing in the Production of Cost Effective 

Customised Products” Loughborough University 

Institutional Repository. (Online Article). 

http://hdl.handle.net/2134/5653 

[8] M. Aliakbari (2012). “Additive Manufacturing: Stateof-the-Art, 

Capabilities, and Sample Applications with Cost 

Analysis” Department of Industrial Production, KTH 

(Online Article). http://www.essays.se/essay/7e634ca31b/ 

[9] E. Atzeni, A. Salmi. (2012). “Economics of additive 

manufacturing for end-usable metal parts” The International 

Journal of Advanced Manufacturing Technology. (Online 

Article). DOI: 10.1007/s00170-011-3878-1 

[10] M. Walter, J. Holmström, H. Yrjölä (2004). “Rapid 

manufacturing and its impact on supply chain 

Management” Logistics Research Network Annual 

Conference (Online Article). http://legacytuta.hut.fi/logistics/publications/LRN2004_rapid_manufactu 

ring.pdf 

[11] S. Nathan, J. Excell. (2010). "ADDITIVE 

MANUFACTURING: Dream machines." The Engineer. 

(Online 

Article). 

http://go.galegroup.com/ps/i.doid=GALE%7CA227252114 

&v=2.1&u=upitt_main&it=r&p=AONE&sw=w 

[12] J. Scott, N. Gupta, C. Weber, S. Newsome, T.Wohlers, 

T.Caffrey. (2012). “Additive Manufacturing: Status and 

Opportunities” Science and Technology Policy Institute. 

(Online 

Article). 

https://www.ida.org/stpi/occasionalpapers/papers/AM3D_33 

012_Final.pdf 

[13] United States Department of Commerce. (2012). 

“Obama Administration Announces New Public-Private 

Partnership to Support Manufacturing Innovation, 

Encourage Investment in America” United States 

Department of Commerce. (Online Article). 

http://www.commerce.gov/news/pressreleases/2012/08/16/obama-administration-announces-newpublic-private-partnership-support 

[14] T. Wohlers (2011). “Making Products By Using 

Additive Manufacturing.” Manufacturing Magazine (Online 

Article). 

http://www.sme.org/MEMagazine/Article.aspxid=68650&t 

axid=1426 

[15] D. Gross. (2013). “Obama’s Speech Highlights Rise of 

3-D Printing” CNN Tech. (Online Article). 

http://www.cnn.com/2013/02/13/tech/innovation/obama-3dprinting/index.htmlhpt=hp_c2 

ADDITIONAL SOURCES 

C. Maxwell (2012). “3D Printing: Taking Business to 

Another Dimension” Director Magazine (Online Article). 

http://www.director.co.uk/magazine/2012/06_June/3D_print 

ing_65_10.html 

D. Walsch. (2012). “Growing by Layers” Crain’s Detroit 

Business. (Online Article). 

http://web.ebscohost.com/ehost/detailsid=58e119ab-d7d8- 

415f-ba4bfdd6d42e49df%40sessionmgr111&vid=1&hid=119&bdata= 

JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bwh&AN=776 

22290 

G. Strano, L. Hao, R. M. Everson, K. E. Evans. (2012). “A 

new approach to the design and optimisation of support 

structures in additive manufacturing” The International 

Journal of Advanced Manufacturing Technology. (Online 

Article). DOI: 10.1007/s00170-012-4403-x 

J. Hewitt. (2012). “3D printing with metal: The final 

frontier of additive manufacturing” Extreme Tech. (Online 

Blog). http://www.extremetech.com/extreme/143552-3dprinting-with-metal-the-final-frontier-of-additivemanufacturing 

R. Sreenivasan, A. Goel, D.L. Bourell. (2010). 

“Sustainability issues in laser-based additive manufacturing” 

Science Direct. (Online Article). DOI: 

10.1016/j.phpro.2010.08.124. pp. 81-82 

AKNOWLEDGMENTS 

We have a number of people that deserve thanks for 

providing us with aid in the writing of this paper. Firstly, our 

assigned writing instructor, Deborah Galle, fielded each one 

of our many questions with prompt and concise answers, and 

really helped in the clarification of our topic, and content of 

the paper. She has also helped in proof reading, and ensuring 

proper formatting. Next, the director of the writing program 

Beth Newborg has helped us tremendously by effectively 

answering the vast number of questions we are continually 

emailing her with. Next, our co-chair, Piaget Francois, has 

also helped greatly in answering many questions, and proof 

reading the work we have done with each step in the 

process. Along with the co-chair, our session chair has also 

aided the writing process of our paper, helping to point us in 

the direction of valuable information. Lastly, we also must 

thank Garrett’s dad, Greg White, who provides great support 

with the many articles and information he has emailed us. 

8

Garrett White 


APPENDIX A 

This is the cost model, produced and used by Eleonora Atzeni and Alessandro Salmi (Department of Management and 

Production Engineering, Politecnico di Torino), to estimate the costs of production using high pressure die casting (HPDC). 

The cost model is evaluated in the case study. This cost model uses the Euro as the currency [9]. 

To view the actual application of this cost model, please view appendix C, the entire case study. 

9

Garrett White 


APPENDIX B 

This is the cost model produced and used by Eleonora Atzeni and Alessandro Salmi, in order to evaluate the cost of 

production of parts when using selective laser sintering (an AM process) methods. The Euro is the used currency in this cost 

model [9]. 

To view the actual application of this cost model, please view appendix C, the entire case study. 

10

Garrett White 


APPENDIX C 

To view the case study produced by Eleonora Atzeni and Alessandro Salmi (Department of Management and Production 

Engineering, Politecnico di Torino) that analyzes the cost of producing “a main landing gear of a scale 1:5 model of the 

Italian aircraft P180 Avant II by Piaggio Aero Industries S.p.A”, please open the following link [9]: 

http://link.springer.com/article/10.1007%2Fs00170-011-3878-1LI=true#page-1 

The case study begins at the bottom of page 4 of the article (page 1150 of the source). It provides valuable, and highly 

detailed, information on the cost analysis of traditional manufacturing processes versus additive manufacturing processes. 

11

economic analysis of additive manufacturing for final products

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