How 3D Printing changes the economics of outsourcing and globalization

3D Printing is a revolution that changes two important economic equations – insourcing/outsourcing, and the globalization/localization equation.

It tips the balance between insourcing and outsourcing of manufacturing in favor of insourcing. And it tips the balance between globalization and localization in favor of localization.

In the pre-3D Printer era, outsourcing —  the transfer of a number of business activities to third parties either at home or abroad — allowed companies to improve efficiency, cut costs, speed up product development, and focus on their “core competencies.” It helped American companies address the destructive forces of globalization; that is, the intensification of competition and the price and profit erosion that followed it.

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