$10k to Start a Manufacturing Business?
Forget manufacturing in China and spending millions to set up a plant. What if i told you, you could set up a manufacturing business for $10k. Here’s an industry that is now set to grow in dimensions we don’t fully understand. Additive Manufacturing. What’s Additive Manufacturing? It’s 3D printing. It’s called that because it’s different from subtractive method of production – which removes unnecessary materials from the final material.
The technology for 3D printing has existed for many years now, but what makes this moment special is that it has advanced enough where it is price competitive to larger manufacturing players in several categories already. In fact, according to research from grand view research below, it is already a 5 to $10 billion USD market, and set to grow at a very healthy CAGR of 21% for the rest of the decade – creating opportunities in many interesting ways.
One of the first successful applications was in the dental clinic. Patients who needed a dental implant or crown – Instead of waiting for a week, could now have one during a single doctors visit. This was a game changer in terms of patient experience.
Perhaps you know someone who has had Invisalign? That’s another medical procedure enabled through the use of accessible 3D printing. Retainers are produced for only a few dollars each, and sold at a roughly 95% gross margin.
There are several existing and to be developed niche applications to 3D printing – from construction to jetfuel (yes fuel for fighter planes!) so the sky is literally the limit. Barriers to entry are relatively low with potential first mover advantages in several new categories. The person who develops the channels first, will have distinct advantages over future challengers. Here are some sample prices of 3D printers used for medical (dental) applications – TLDR, it’s not a whole lot.
