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THE SWEDEN INDUSTRY, INDUSTRIAL AGREEMENT AND FUTURE CHALLENGES

The section on pages 63 to 71 is about additive manufacturing in Sweden (and the world). Arcam is prominent in the report. The downside for us is that it seems to be only available in Swedish.

DEN SVENSKA INDUSTRIN, INDUSTRIAVTALET OCH FRAMTIDA UTMANINGAR - EN RAPPORT AV INDUSTRINS EKONOMISKA RÅD, OKTOBER 2017

There's no guarantee on the accuracy of the translation.

4.3. NEW PRODUCTION METHODS - ADDITIONAL PRODUCTION

4.3.1 Additive manufacturing - a new technology

Additive manufacturing actually has a longer history than many people know, but growth has only been fast in recent years. US Stratasys started sales of a machine for additive manufacturing already in 1992 and Boeing began using polymer based components produced with additive manufacturing in the mid 90's. ISO / ASTM 52900 defines "Additive Manufacturing as the process of joining materials To make parts from 3D model data, usually layer upon layer, as opposed to subtractive and formative manufacturing methodologies. Historical terms include additive fabrication, additive processes, additive techniques, additive layer manufacturing, solid freeform fabrication and freeform fabrication ".

3D printing has generally been perceived as the simplest and cheapest type of additive Manufacturing using polymers, but of ISO / ASTM is defined as "3Dprinting is defined as fabrication of objects through the deposition of a material using a print head, nozzle, or other printer technology ".

In practice, additive manufacturing and 3D printing have thus become synonymous concepts. We use in future the English abbreviation AM for additive manufacturing. A common Abbreviated abbreviation is otherwise 3DP.

AM system combines material into three-dimensional models using CAD (Computer aided design). In the process, you must then create an STL file that is sent to the AM system. An STL file describes a surface in a three-dimensional coordinate system and process also called stereolithography. AM can work with metal powders, polymers or ceramics. By building the product stock for stock you can achieve the final result which is not possible with traditional manufacturing technology. AM comes to the biggest use when the need for customized customized solutions is large. AM can at the same time have an advantage even in connection with series production if you want to achieve components that are difficult to produce traditionally, such as components with cavities to save weight. In the vast majority of cases, AM has a competitive disadvantage when it deals about series production in long series. Traditional manufacturing has a marginal cost per produced device that is extremely competitive.


Nevertheless, AM has found a growing market in consumer goods industries throughout the support it can give to product development. With the help of AM you can quickly find out new prototypes, which in turn can then be manufactured using traditional technology. probably is this the main advantage of AM. Using AM can cost and time for product development is reduced.

ASTM has divided AM into seven different types of processes, see Chart 4.6.

Diagram 4.6 Classification of AM technicians according to ASTM.

Process Description Material

Binder jetting Liquid binders are deposited selectively Polymers, metals, cast iron, ceramics
Material jetting Small drops of building materials are deposited selectively Photopolymers, waxes
Powder smelting Heat energy selectively smelt areas in a powder layer. Polymer, metals, ceramics
Targeted Energy Deployment Focused thermal energy merge materials when deposited
Metals Laminating Slices of material bonded to an object Paper, metals
Photopolymerization in containers Liquid photopolymers are selectively cured in containers by sound activated polymerization Photopolymers, ceramics
Extruder Material extruded through a nozzle or aperture Polymer, ceramic, concrete

Source: ASTM International. Swedish Processing: Sven Karlsson, Uppfinnaren & Konstruktøren, 3/2014.

Several of these seven techniques are mainly suitable for the production of prototypes. Binder jetting, powder coating, targeted energy deployment and lamination are also used in direct manufacture. The process that contributed with the most systems is extrusion. Here is Stratasys (www.stratasys.com) largest, based initially on inkjet printer technology. Stratasys is the veteran of AM and has acquired other companies within AM and thus diversified into other technologies. Today, Stratasys systems and solutions deliver to one row of industries and has delivered tools for Volvo Trucks.

The industry where AM has hit most is probably the industry for hearing aids. Tiomilion's earpieces have today been delivered using AM (Sharma, 2013 and Hendricks, 2016). Via a digital photo of the human ear there up to 20,000 Coordinates are defined, you can quickly find an individually customized product. The (as self-employed) leading provider of AM hearing aids industry is EnvisionTEC headquartered in Detroit. The founder of EnvisionTEC began Originally working on another company that delivered AM products to Detroits automotive industry based on a lamination process.

The Swedish company Arcam, listed on Nasdaq OMX, uses powder smelting based on EBM technology (Electron Beam Melting). It differs from powder smear based on laser technology.


Arcam has its foundation in research commenced at the Department of Robotics at Chalmers University of Technology in Gothenburg in 1987. In 1997, Arcam was formed to: exploit Ralf Larson's invention for the production of prototypes and tools of solid metals. The first demo machines were launched in 2002 and 2003 was the first order through an installation at an American university. Arcam uses titanium powder for its technology and acquired the Canadian company AP & C in 2013 titanium powder to ensure access to raw material. Arcam has concentrated its sales on two market segments: the orthopedic industry and the aerospace industry.

Arcam's sales increased from 139 MSEK 2012 to 648 MSEK 2016, which means an annual average growth of 47 percent. In those figures, however, the acquisition of AP & C is included.

In 2016 General Electric offered an offer to Arcam but did not receive more than 76 percent of the shares. Arcam is still listed. Outwardly, you are presented as part of the GE Group.

Healthcare / medical technology and aerospace / industry, the sectors that Arcam has invested in just the two industries where AM broke through. In the field of health care there is a great need to adapt the results to the individual patient, especially in the case of implants, prostheses but more. Within the aerospace industry there is a major need for reduced weight Components and you are also prepared to pay extra for custom parts.

4.3.2 Additive production (AM) - a growing market

As you study AM, you soon encounter the American consultancy firm Wohlers Associates Inc., which for a number of years analyzed the AM market in an annual report, Wohlers Report. Wohlers has developed good contacts with the suppliers in the field who supplies Wohlers with sales data. Wohlers Report also provides a lot exhaustive description of the AM market and where it is on its way and contains one lots of information about the active companies.

Based on 97 international system and product vendors, Wohlers calculates Report 2017 that the AM industry in 2016 had sales of 6.1 billion USD and grew by 17 per cent from the previous year. (Wohlers Report 2017, Press Release). Over the five-year period 2011-16, average annual growth was 29 percent in value. It is a significant one higher growth than in the years before the financial crisis (2003-08). Growth is impressive though However, overall sales show that the AM industry is still a small industry. The slower growth in 2016 is due primarily to the two largest companies Within AM Stratasys and 3D Systems, something backed up.

Wohlers Associates has given us permission to use part of the results from Wohlers Report 2017 for installed systems by industry and country. Table 4.3 shows distribution by industry on the number of installed systems by the end of 2016:

Table 4.3 Wohlers Report: Global Industry Distribution of Installed AM Systems 2016.

Machine industry 18.8%
Aerospace industry 18.2%
Automotive 14.8%
Consumer goods, electronics industry 12.8%
Medical Technology / Dentistry 11.0%
Other 24.4%

Source: Wohlers Report 2017.

As appears from the report, the distribution is significantly broader than just air and healthcare. One of the reasons is that polymer-based AM products have been more widely distributed. Polymer-based systems that are often based on extrusion can be purchased for a relatively cheap money and they dominate volume. The distribution of the number of installed systems Therefore, does not say much about how much every industry put down on AM. The most expensive The systems are metal-based. More polymer-based systems have been sold than metal-based, but today, metal products are based on metal powder which increases fastest. It is also these latter that are most interesting for the manufacturing industry.

Table 4.4 shows the distribution of installed systems by country at the end of 2016. North America has a major head start in terms of AM and Europe after Asia.


Table 4.4 Wohlers Report: Installed AM system 2016 per country (percentage distribution).

USA 36.8%
China 10.3%
Japan 9.2%
Germany 8.4%
South Korea 3.4%
Italy 3.3%
France 3.1%
Canada 1.9%
Taiwan 1.6%
Spain 1.2%
Sweden 1.2%
Other countries 19.6%

Source: Wohlers Report 2017.

In the last section, we saw that the United States was behind Europe and Asia in terms of robotization. In the case of AM, the United States obviously has a head start. In Europe it sees as if Germany has a head start compared with other countries. Sweden is well situated compared with other European countries, but 1.2 per cent is approximately in par with our share of world trade. As with industrial robots, China is well even though the numbers would be less impressive if you put it in relation to industrial production.

Let's focus on the production of metal parts. There are great benefits of production of metal components via AM.

Figure 4.4 shows how additive manufacturing allows you to skip many joints the production of a metal-based product. This means shorter lead times and less the need for stockholding and, ultimately, a significantly shorter value chain. AMtekniken makes the metal consumption smaller and that there will be a significant reduction in waste products. Product design where stock is added to stock brings more degrees of freedom.


Figure 4.4 Metalworking - Preparation of a final product with conventional technology respectively additive manufacturing according to McKinsey (2017).

MANUFACTURE OF A PRODUCT IN METAL

At first glance, it appears that AM means fewer joints. The disadvantages of AM can still be significant. It is difficult to compete with the piece cost at conventional technique. A factor that limits the expansion of metal-based AM is additionally the availability of powder metal. It is both expensive and of varying quality. But figure 4.4 actually gives a simplified picture. What does not appear is that you initially at AM too must do both CAD programming and create a print file. It requires action by qualified staff. So it's not just pressing the button. AM technology requires Also some finishing to ensure quality assurance that you must also take in Consider when comparing costs and quality, and it concerns both powder-smearing like other technologies. McKinsey actually points out these things in his report as we downloaded the picture, but still fall for the temptation to produce the technology as easier than it actually is.

The issue of AM in the future can compete with conventional technology as well series production we do not see an answer in a while. Today, AM is not competitive as soon as you talk about serial production if it does not concern expensive aircraft parts and In fact, the series is not very long.

Siemens Turbomachinery in Finspång has established an entire production line with AMsystem indicating that the time has come to produce a prototype to 4-5 weeks from previous 18 months (see Tune in Print out, How a 3D revolution is reshaping industry, Business Sweden August 2017). And it's just when it comes to the production of prototypes as the major advantage of AM arises. AM complements there traditional manufacturing technology, it does not compete for it.

It is precisely in terms of prototyping that AM has its major advantages. Therefore, AM appears as a complementary technique for conventional manufacturing technology, not a competing technique. AM can contribute to faster product development. AM is also interesting when it comes to short series. Many subcontractors are focused on series production of long series and is not interested in delivering short series like You do not see any economy in. There can AM come in, either through the companies themselves acquire the technology or buy the result from outside. Höganäs has launched AM on demand (see https://www.hoganas.com/en/businessareas/3dprinting/technology/) under the brand Digital Metal. Höganäs provides long metal, nickel and cobalt powder metal. In 2012, Höganäs acquired the company Fcubic who developed an AM powder metallic system. The method is based on binder jetting.

Höganäs has subsequently made additive manufacturing to one of its business areas. In July In 2017 Höganäs received an order from the French institute CETIM on an AM system (www.hoganas.com/en/news-centre). As a supplier of AM systems, one is extremely fresh and small in comparison to Arcam that delivered several hundred systems even if you total
set is a ten times as big company. On his website, Höganäs urges that contact, tell about his project and send over a CAD file, Höganäs will quote. So far, metal parts are delivered in steel, but other metals are on their way. On This area is at the same time international competition hard, but it can be an advantage to sit on a raw material course. Arcam decided today to be unusual integrate vertically through the acquisition of AP & C.

Höganäs is not the only big company to jump on the AM train. General Electric is betting large and has acquired several companies in addition to Arcam. HP announced in 2014 that it was decided say to place a global center for its R & D within AM in connection with its activities in Barcelona. It raised some attention that HP entered a market
which was dominated by relatively small companies so far and was described as the market leader On 2D Printing, the step goes to 3D Printing. A contributing factor to the increasing The interest of big business, in addition to the growing market, is a lot of patents within AM has expired in recent years.

4.3.3 Additive production - strengths and weaknesses

Can AM have the same productivity gains as industrial robots? Not for a while. productivity gains are difficult to appreciate because of the main advantage of AM is an integral part of product development. It is in industries like hearing aids and dental implants that can be said of large-scale benefits, but these are a small part of the total industry.

Let's recapitulate the benefits of AM.

- "You can quickly develop a prototype - it revolutionizes product development.

- AM means that you can tailor the product to individual needs, something like above all faced a major need in healthcare and medical technology, but about the costs coming down can probably increase the number of applications.

- AM can provide some (but not limitless) new degrees of freedom in terms of design ofthe component that you want to produce.

- "With AM, we can satisfy your needs, which means that we get products like us today can not imagine.

- When the requirements for materials are large (such as in the aviation industry), AM can provide major benefits.

- "These factors can together provide flexibility that can give significant competitive advantages without replacing a traditional production line with an AM-based. AM can serve as a complement. At the same time there are also obstacles and disadvantages that make AM difficult to break through on a large scale.

- "It is difficult to compete with the economies of scale as conventional manufacturing technology have.

- The need to tailor products according to the user's needs is in many cases limited. A number of variants meet the needs of most people.

- "Those who mission for AM often describe it as a technique in which they are pushing on the button and then everything happens. But the preparations required include a whole share labor costs and knowledge. For example, you want to replace a spare part with AM, so it takes a lot of investment in creating print files for all those parts may be demanded.

- "There are today a number of supply problems with regard to AM raw materials that limit how fast the market can grow.

4.4. CONSEQUENCES FOR SWEDISH INDUSTRY

What gets robotization and additive manufacturing (AM) for consequences for a high-cost country like Sweden? The AM can increasingly complement traditional manufacturing and should be close to this, as in Siemens factory in Finspång. It gives one competitive advantage for localization of industry to Sweden if one looks to be at the forefront within AM. AM may strengthen the band manufacturing - research and product development.

When it is profitable to robotize a production line, it increases production per hour worked. It benefits production in Sweden. Today is spreading a media game Techniques like robots then get lost. In some parts of the western world it has the requirements of the rest on introducing a robot tax. Certainly, some jobs disappear in production, but that engineering jobs also arise. If the robot that robs increases its profitability, it is added a reason for increased sales and thus more jobs no fewer jobs. To all those who believe That robots take away the job, we ask: How are the countries that have robotized most are those who also have low unemployment and often lack of labor? The same Can be said about AM. AM contributes to faster product development and to companies accordingly can increase its competitiveness. It contributes to a stronger link between production, product development and research. AM has also laid the foundation for the emergence of new ones products eg implants that raise the quality of life in patients.

Do these technologies affect the global value chains we discussed in section 4.1.3. AM is still a young technology but should eventually lead to shortening the value chains, making more in-house. In some cases, however, the effect may be the opposite, if so leads to some companies specializing in AM and delivering products to a global market. It is hard to say what the impact of the introduction of industrial robots is. When used in e.g. web trade, the effect can be increased cross-border trade. For example, more and more Swedes already act on Chinese Ali Baba.

Industrial robots increase productivity in long series production. Correspondingly AM should increase productivity in short series production or customized products. It is thus technicians that complement each other, they do not compete primarily with each other. Together they have the prerequisites for contributing to an even more efficient industry. We dare not give us a guess if the productivity gains are so big that they also affects macro data such as the growth figures in chart 4.2. Perhaps in the long term.

Swedish industry shows the forefathers in both industrial robots and additive manufacturing. We have important players, we have industries that take on the technology, but overall it seems It's not like industry has taken the technology in depth. Sweden seems to be on the rise Germany, albeit before many other European countries. In Chapter 1, Table 2.5, we saw that The value added per hour worked in Sweden was above average but a bit after they leading countries. More Swedish companies need to increase investments to increase productivity and there, industrial robots and additive manufacturing provide new opportunities.