How 3D Printing Affects Global Trade

As with many technologies today, it’s perhaps fair to say that 3D printing has succumbed to the so-called “trough of disillusionment”, as the incredibly lofty expectations heaped upon it have failed to materialize.

Such expectations exist in a recent paper from the University of California San Diego, which examines the potential impact of the technology on global trade. Their hypothesis is that as 3D printing allows goods to be produced locally, it could be detrimental to global trade.

Limited impact

The research suggests that while 3D printing did indeed change various production processes, it had much less impact on supply chains. This finding emerged after analyzing the production of hearing aids, which are commonly made via 3D printers.

The analysis shows that the emergence of 3D printing led to a doubling of exports from producers in the five years after the introduction of the technology. Similar patterns emerged across 35 other products, including prosthetic limbs and running shoes.

“The technology is a boon, not a curse to trade,” the researchers explain. “A country’s exports of hearing aids increased more than trade in other similar goods following the adoption of 3D printing by manufacturers there. The new production technology in combination with trade means that consumers around the world suffering hearing loss are benefitting from better and often cheaper hearing aids.”

Significant investment

The researchers argue that this is likely to be a result of the significant investment in technology and machinery to support the printing of hearing aids in large numbers. A number of countries were among the earliest investors, and the likes of Denmark and Singapore have come to dominate the market.

Hearing aids are also lightweight, which is a characteristic they share with the various other products examined, which can make shipping internationally cheaper.

“Policymakers often view 3D printing as a means to shorten supply chains when in fact it is more likely to enhance trade and reshape supply chains,” the authors conclude.

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