3D printing business affected by economic volatilities in China

3D printing business affected by economic volatilities in China

The research question is evaluating the impact of trade and financial instabilities in china concerning the adoption and diffusion of 3D technologies in manufacturing and production. The research question assesses the nature of economic uncertainties, such as a decline in demand for 3D technologies in local and international markets. The research question studies business volatilities, such as an increase in costs of rare earth elements utilized in the design and production of 3D technologies. Moreover, the research question assesses cause and causality between economic uncertainties in China and international markets and the demand for 3D techniques in manufacturing and production.

A feasibility study on the success, adoption, and diffusion rates of 3D technologies and techniques is inherent in favorable economic and financial environments. In China, the availability of raw materials such as rare earth elements makes it cheaper to develop and design 3D printers and techniques. However, a market slowdown in Chinese products and exports threatens the profitability and potential success of 3D technologies as such. The rate of production dependent on 3D techniques is on the decline, hence imposing a going concern in additive manufacturing innovations. Moreover, lower demand for 3D printers attributes to increasing costs and expenses of purchasing additive manufacturing innovations, thus becoming an economic uncertainty for available and skilled labor.

The research question is essential in the process of evaluating the profitability of 3D techniques as a viable business opportunity. Secondly, the research question is interesting in assessing the potential of 3D innovations in creating sufficient demand and employment opportunities while studying potential benefits in eliminating business slowdowns in the Chinese economy. The research question is adequate in evaluating future impacts of economic uncertainties in the research and development of modern manufacturing and production techniques that facilitate the creation of value and wealth.

Time series data is appropriate in studying business uncertainties in the economy and industry of china, leading to the unpredictability of profitability of 3D technologies. Time series data examines economic fluctuations through 2-week periods based on market demand and purchase of 3D technologies. Time series data intervals of 2 weeks are sufficient in assessing small changes in costs and application of rare earth elements utilized in the design and production of 3D printers. Time series forecasting offers qualitative and quantitative results on expected financial gains compared to invested capital in the design and diffusion of 3D techniques. Time series data derives from primary sources of entities engaging in the design and production of 3D technologies. Time series data includes production and demand estimates of 3D technologies on a two-week basis, thus offering current analysis of business performance.

Cross-sectional analysis of the rate of adoption of 3D technologies evaluates challenges from lack of incomes and capital for the purchase of essential production techniques. Periods of 2 weeks in the study and analysis of cross-sectional data is vital to gauging the effects of the lack of employment opportunities and impact on the level of productivity by skilled human capital. Data obtained for cross-sectional analysis derives from primary sources such as production numbers of 3D printers and technologies and the amount of available social money for entities dealing with additive manufacturing techniques.

Key challenges in the collection of time series and cross-sectional data is a limited two week period that offers short term inferences on business fluctuations and volatility. A second challenge is a reliance on primary and secondary data on the demand and productivity of employees utilizing 3D techniques within a short period of 2 weeks. Strategies for addressing these challenges is the reliance on primary data from industrial participants in the design of 3D technologies while maintaining a high degree of causation between business volatilities and inefficiencies in the diffusion of additive manufacturing innovations.

3D printing business affected by economic instabilities in China

Data indicates that business volatilities in China have the potential to disrupt the sourcing of raw materials. Due to disruptions in the supply and delivery of raw materials deriving from insufficient logistics, production of 3D products declines. Sufficient raw materials include rare earth elements for use in 3D printers, with the potential to increase costs in the short term. Disrupting the logistics and timely arrival of raw materials for 3D creates uncertainties on production schedules, making it difficult to conduct future investment appraisals. Rare earth elements are costly and expensive to source from the market, thus making it difficult for businesses to afford essential raw materials during market fluctuations.

Empirical data depicts a decline in research and innovations due to economic and financial volatiles in Chinese markets. The empirical data studies the productivity of human capital due to fears of declining demand for 3D products. As such, potential human capital that is skilled and qualified may fail to exploit market opportunities due to anticipation of low demand in the future. Lack of utilizing skilled human capital leads to lesser innovations and a lack of motivation in reducing the costs related to 3D production and manufacturing. Empirical data present economic uncertainties as reducing the welfare effects for skilled engineers and robotics designers, thus limiting the growth and innovation process of 3D technology.

Cross-sectional data from primary and secondary sources indicate lower rates of absorption and diffusion of 3D technology and AI. Since the development of business AI and 3D technology is a novel manufacturing process, economic uncertainties increase startup capital and fixed overheads. As such, the cross-sectional data studying startups in the 3D industry indicates the potential for failure in 3D businesses. Furthermore, few consumers are willing to purchase expensive and costly 3D technologies, thus limiting the rate of absorption in manufacturing and production lines. Business uncertainties hence restrict the profitability of novel innovations such as 3D technology, thus necessitating government subsidies. Moreover, 3D businesses may opt sharing of essential research and development data to minimize costs associated with novel manufacturing techniques.

The main results of this paper are a feasibility analysis of the future of 3D technology in spite of economic fluctuations in Chinese and international markets[1]. The results indicate a favorable market environment for 3D businesses with sufficient capital for the purchase of raw materials in advance. Secondly, the maximum results encourage 3D businesses to explore human capital flexibility in avoidance of loss of productivity and motivation among employees[2]. Secondary data from 3D enterprises and industry manifest lower costs and fixed overheads in the sourcing of skilled human capital through networking and pooling of international resources.

Contributions to the feasibility study include a literature review analyzing the rate of absorption and diffusion of 3D technologies. Contributions from secondary sources debate the costs and fixed overheads due to disruptions in logistics of rare earth elements utilized in 3D technologies. Finally, contributions assess lower demand for 3D technologies due to high initial costs in the purchase and acquiring of novel manufacturing and production techniques.

[1] Xiao, Xiaoyong, Qingsong Tian, Shuxia Hou, and Chongguang Li. “Economic policy uncertainty and grain futures price volatility: evidence from China.” China Agricultural Economic Review (2019).

[2] Xiao, Xiaoyong, Qingsong Tian, Shuxia Hou, and Chongguang Li. “Economic policy uncertainty and grain futures price volatility: evidence from China.” China Agricultural Economic Review (2019).