There are multiple benefits in additive manufacturing, not only for TE, but for companies across industries. AM does not require a lot of customer set up costs before going into production, giving a company greater flexibility in terms of production volume, timing, and even location. It can also be more precise than many traditional methods in building complex objects. And it generates less waste as the object is not kept out of a block of material, like in traditional substract of manufacturing. As a result, companies can consider different opportunities to evolve their current manufacturing process. The first is in the prototyping phase. Traditionally, prototyping required to either build the prototype manually or to adjust the whole production line. Obviously, that costs a lot of time and money. With additive manufacturing however, it is possible to develop a prototype without any set up costs, without the need to disturb the functioning of the production line. During the production phase, one main application area of additive manufacturing is personalization. We discussed the ability of creating tailored prosthetics for patients and the beginning of the video. But this can also include innovative products that we were not able to build before such as bionic, lightweight, and hollow structures, like fast dissolving pills. However, additive manufacturing is not expected to fully substitute the conventional well tested processes, especially for high volume production. Why is that? Remember, one key advantage of additive manufacturing is the close to zero setup cost. When you have a high volume production, set of cost is anyway insignificant in the bigger scheme of things. And when no personalization is required, the scale effect of a mega factory makes the economics work just fine. Still, for many industries, additive manufacturing will have profound implications on the whole value chain. Let me give you an example about the company in the aircraft maintenance business, let's call it Airmac. If Airmac is covering the Asia-Pacific region, it would probably have a warehouse, for example Singapore, where it can store parts, let's say for the GE engine. It will import a hundred different parts from the US based plant, store them, and then distribute them on demand to Asian clients. What would be the implications for Airmac and for GE, if those parts could be 3D printed? For Airmac, does it make more sense to start duplicates of each part or just have a universal 3D printer with all the models loaded into it? Should GE continued to manufacture and sell the parts or close the factory and license the 3D models? Essentially, becoming a design powerhouse. And if this is the case, how could they guarantee that those designs will not be published, downloadable for anyone? Many of those questions will gradually be answered as the additive manufacturing process is perfected and the adoption increases. But we know for sure that this technology will have a broader impact on our world. Let me show you an example of how this is already happening. In 2013, Cody Wilson has published a blueprint for a 3D printable gun. This blue break print is now probably available on the internet somewhere. We can debate whether it's a matter of years, a month, but what is the ultimate scenario of it? We have personal 3D printer, someone could download the Cody Wilson's file from the Internet and simply print a gun in any country, any time. If you replace the gun in the example by any other physical product, you will still see that additive manufacturing raises a lot of questions and challenges from regulations, to border control, to intellectual property protection, and even taxation. So, what are the main takeaways from this video? Additive manufacturing is already a reality. Leveraged by simple consumers as well as industrial conglomerates. Additive manufacturing will not substitute, but compliment traditional manufacturing whenever more personalized, complex products at small scales needed. For many industries, increased adoption of additive manufacturing will reshape the value distribution among the players, and dictate new ways of organizing the global supply chain. Geopolitical implications need to be taken into account, and new regulatory frameworks will need to be thought of as a consequence of blurring boundaries between the flow of physical goods, and the flow of information.
