2024-08-17
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Economic Observer reporter Zheng Chenye Three or two people, one hundred desktop 3D printers, send design files to the machines, load consumables and take out finished products in time, and earn nearly 10,000 yuan a day in full production, like a small factory with all the necessary facilities... This may be the first impression many people have of 3D printing farms. However, when the Economic Observer reporter visited some 3D printing farmers, he found that serious homogeneity and fierce price wars are also eroding this emerging industry.
According to the observation of Tan Wenjie, founder of the consulting agency 3D Printing Resource Library, since the second half of last year, driven by the explosive popularity of 3D printing toys such as the carrot knife, a large number of entrepreneurs have begun to invest in "building factories." "It is conservatively estimated that there are more than 20,000 3D printing farms in operation, more than 500 farmers have 20 3D printing devices, more than 30 farmers have more than 200 devices, and some super farms even have more than 1,000 devices." Tan Wenjie told the Economic Observer.
The emergence of popular 3D printed toys means that the "money-making opportunity" has come to the 3D printing industry. Sufficient orders have shortened the payback period for most 3D printing farmers to less than three months.
However, low barriers to entry also mean fierce competition. After a popular product becomes obsolete, most industry participants can only passively wait for the next popular product to emerge.
"The biggest problem facing 3D farms now is the lack of original design. Few people have their own models and creations. They are all waiting for hot products to appear and then copying them. The fierce competition I mentioned is limited to those farmers who cannot make original designs." In Tan Wenjie's view, 3D printing farms may differentiate in two directions in the future. One is to continue to expand the scale of equipment, turn farms into factories, and do business of small profits but quick turnover; the other is to focus on innovative design and differentiated services, develop unique products, meet specific market needs, and do high-gross-profit niche business.
What is a "3D printing farm"?
"You can think of a 3D printing farm as a small factory. Desktop 3D printers are the interconnected machine tools in the factory. They are driven by a management system, use unified parameters and raw materials, and print out products with unified formats and specifications according to set programs." Ma Xuan, a Shenzhen farmer who owns 80 3D printers, told the Economic Observer on August 15.
From a technical perspective, 3D printing currently relies mainly on a technology called plastic fused deposition modeling (FDM), also known as fused filament fabrication (FFF).
Desktop 3D printers usually use a plastic filament, such as polylactic acid (PLA), polyethylene terephthalate glycol (PETG) and acrylonitrile-butadiene-styrene copolymer (ABS). These materials are softened by heating, and then stacked layer by layer through a nozzle according to the designed path to form a complete object. This method is like building a house, each layer is part of the construction, and the design is gradually turned into reality. It is worth noting that although 3D printing technology is very flexible and suitable for making objects of various shapes, it is relatively slow because it is stacked layer by layer, so it is more suitable for small batch or customized production. "It is called a farm because the process of 3D printing is very similar to planting and harvesting vegetables. Turn on the machine, load the consumables, then import the model into the software, start printing after slicing, and finally take down the finished product. If you have more than 10 3D printers at the same time, you can be called a farmer. More than 50 are considered medium-sized farmers, and more than 100 are large-scale farmers." Tan Wenjie said when talking about the origin of the name 3D printing farm.
So, how much does it cost to open a 3D printing farm? Tan Wenjie did some calculations. For example, if he bought 10 3D printers, each machine would cost about 4,000 yuan, and the total cost for 10 machines would be 40,000 yuan. If each machine uses an average of 500 grams of material per day, at a price of 66 yuan per kilogram, the material cost per machine per day would be 33 yuan. The material cost for 10 machines per month (30 days) is 9,900 yuan, which is about 30,000 yuan for three months.
In addition to the cost of machines and materials, there are also site and operation costs. "If you rent a 100-square-meter site, the monthly rent is 2,000 yuan, which is 6,000 yuan for three months. Assuming the one-time renovation fee is 20,000 yuan, the total cost of site and renovation is 26,000 yuan. Add the electricity cost. A machine consumes 3 kWh of electricity when it runs 24 hours a day. Calculated at 0.67 yuan per kWh, the electricity cost of each machine is about 2 yuan per day, and the total cost of 10 machines in three months is 1,800 yuan." Tan Wenjie said.
By this calculation, the total initial investment for a small farm with 10 3D printers is about 100,000 yuan.
In terms of revenue, at present, the charging methods of 3D printing farms are mainly divided into three categories: the first is charging by weight, which is also the mainstream charging method in the industry. 3D printing farms will charge according to the weight of the printed product, usually in grams. Some 3D printing farms will charge according to the use time of the equipment, especially when it comes to large-scale or complex printing tasks. In addition, for standardized, highly repetitive products or products produced in small batches, 3D printing farms will also adopt a per-piece charging method. "At the beginning of the year, the general charge for farm printing was about 0.2 yuan per gram. According to this calculation, each machine can generate 100 yuan (500 grams) per day, 10 machines per day is 1,000 yuan, and three months is 90,000 yuan. Therefore, a farm with 10 machines can recover its investment in three months." Tan Wenjie said.
The Economic Observer learned that since the second half of 2023, popular products in the 3D printing field have emerged frequently, such as carrot knives, retractable swords, dragons and dragon eggs, which have set off a craze in the global market.
Mr. Li, a 3D printing farmer in Guangzhou, said that at the end of last year, there was a huge demand for 3D printed dragon eggs in the market, with some foreign trade manufacturers purchasing them in units of tens of thousands. A gap in 3D printing production capacity also appeared at that time.
Take dragons and dragon eggs as an example. These two popular products were originally simple toys, but gradually evolved into multiple versions as market demand changed. For example, designers incorporated gradient colors, luminous materials and movable parts into dragon eggs. These innovative elements have enhanced their collection value and market appeal.
3D printing farmers need to seize every opportunity when a popular toy appears on the market, take orders through various channels, produce the products, and then sell them. In essence, this business is no different from that of toy manufacturers.
The Economic Observer also noted that 3D printing hit products such as carrot knives and dragon eggs have many common features. First, these hit products have high visual impact or unique designs. Through 3D printing technology, these products can present complex details and rich colors. Secondly, hit products usually combine current pop culture elements or themes. For example, the design of dragons and dragon eggs caters to many consumers' love of fantasy themes, while carrot knives and telescopic swords attract people who love novel props and interesting collectibles.
In terms of sales channels, people can see such hot-selling products on domestic e-commerce platforms, offline stalls, and overseas cross-border e-commerce platforms. Especially in the European and American markets, these 3D printed toys have become popular holiday gifts and collectibles. Mr. Li told the Economic Observer that the dragon eggs sold very well during Easter, mainly because they were highly consistent with the theme and symbolic meaning of Easter. "The threshold for 3D printing is very low. You can watch two teaching videos, buy a dozen 3D printers, and take time to look after the equipment. The design drawings are all available online. You can start work after packaging and shipping. Why are 3D printing farms so popular since the end of 2023? There is a large demand for hot-selling products and a lack of production capacity. At that time, a large number of people rushed in to open farms." Mr. Li said.
Ma Xuan told the Economic Observer that the threshold for desktop 3D printers was not so low at the beginning, but thanks to the technological innovation of domestic 3D printers in recent years, domestic manufacturers such as Shenzhen Tuozhu Technology Co., Ltd. (hereinafter referred to as "Tuozhu") and Shenzhen Chuangxiang 3D Technology Co., Ltd. (hereinafter referred to as "Chuangxiang 3D") have launched a series of extremely cost-effective desktop 3D printers. At the same time, combined with their supporting management systems, ordinary people can quickly master the tricks of 3D printer operation.
The explosion of market demand and the extremely low entry threshold of 3D printing farms have made the 3D printing farm model popular. "A popular 3D printing product has created hundreds of 3D printing farmers," said Tan Wenjie.
But logically, this kind of hot-selling product with high demand seems to be more suitable for injection molding. The injection molding process has higher production efficiency and lower unit cost. For products with high demand and relatively fixed design like dragon eggs, injection molding can produce a large number of consistent finished products in a short time. Although 3D printing is more flexible, it is less efficient and more expensive in mass production. Especially when facing large-scale orders, the advantages of injection molding should be more obvious.
Tan Wenjie explained: "The reason why we didn't choose mold injection molding is that it is difficult to make products with movable joints such as carrot knives, telescopic swords, and Chinese dragons by injection molding. Even if they can be made, the cost is very high and the yield rate may be very low. As for the gradient chromatic dragon eggs, it is also quite difficult to make molds, so the final production can only rely on 3D printing."
At present, quite a number of large toy manufacturers use 3D printing farms as a way to "test the waters". When a new design toy appears, the relevant manufacturers will first produce a small batch through their own or commissioned 3D printing farms. If the market response is relatively good, they will turn to mold injection molding for large-scale development.
In the first half of this year, Tan Wenjie conducted an in-depth research on the current market status of 3D printing farms. According to him, the equipment commonly used by 3D printing farmers is mainly Tuozhu's P1 series 3D printers, in addition to equipment from Zhejiang Flashforge Group Co., Ltd. and Chuangxiang 3D.
"These are all 100% domestically produced equipment, and according to our statistics, 9 out of 10 consumer-grade 3D printers abroad are from China. In the first half of 2024, the total export volume of additive manufacturing equipment reached 1.829 million units, a year-on-year increase of 40.29%. The total export volume for the whole year is expected to reach 10 billion yuan, of which consumer-grade 3D printers accounted for the majority. The materials used are also mainly from Chinese material manufacturers." said Tan Wenjie.
From a monthly income of 200,000 yuan to machines that are not fully utilized
The 3D printing farm, which appears to be a niche field on the surface, has now been able to gather a large number of practitioners from all over the world to hold a forum.
Tan Wenjie has been busy with this recently. On August 29, the 3D Printing Resource Library and the organizer of Formnext Shenzhen Exhibition will jointly hold the "2024 China 3D Printing Farm Industry Summit Forum" in Shenzhen. From the equipment and material suppliers in the upstream of the industrial chain to the 3D farmers in the downstream of the industrial chain, they are all positive about the on-site exchanges. "I have been working in the field of 3D printing for 11 years, but this is the first time to hold a theme forum on 3D printing farms. This also proves from the side that the scale of this industry has reached a certain level." Tan Wenjie said.
Of course, "many people" usually also means "competitiveness". For example, Ma Xuan is also going to attend the forum and hopes to meet some big farmers on site. "When the situation was good before, the monthly revenue was close to 200,000 yuan. Now the machines are not fully used, and sometimes the daily revenue is only a few hundred yuan. I want to see what solutions everyone has for breaking through the situation."
“I don’t know how they calculated the three-month payback. It’s impossible now. We’ll be lucky if we can cover the costs of water, electricity and rent.” On August 16, Diao Lei, a large farmer in Chengdu, Sichuan, seemed a little discouraged when talking about the latest market status of 3D printing farms. “Now the price has dropped to 0.12 yuan per gram. It’s impossible to make a payback in three months. Moreover, 3D printing machines have great wear and tear. They can only be used for three to four years at most.”
Diao Lei's 3D printing farm has been in operation for more than two years and now has 100 3D printers. At the same time, he has hired two employees to run the farm together. From dragon eggs, rice dumplings to small dinosaurs, Diao Lei's farm has received a variety of printing orders. "We mainly accept orders for proxy printing and do not directly contact the end customers. It is mainly the channel dealers who contact us, and we take orders and produce." Diao Lei said.
For 3D printing farms, orders come from many sources. Diao Lei mainly accepts demands from downstream toy manufacturers or cross-border e-commerce companies. They print whatever the customers need. However, since the orders have been handed over by downstream customers, the middlemen have made a profit from the "price difference", so the profit of this type of orders is not high.
"We will post some videos of our 3D printing products on platforms such as Bilibili and Douyin, and customers will contact us through these platforms when they see them," said Diao Lei.
Mr. Li from Guangzhou is currently exploring the use of cross-border e-commerce platforms to sell related products. Ma Xuan has already begun “preparing to set up a street stall online.”
In Tan Wenjie's view, the reason for the involution of 3D printing farms is simple: there is an oversupply of homogeneous production capacity, and most farmers lack differentiated competitive capabilities. "The threshold for 3D printing farms is not high. At the end of last year and the beginning of this year, a large number of newcomers entered the market relying on popular products. So they can only involution and engage in price wars. Therefore, some farmers who do not have original capabilities feel that competition is intensifying."
The Economic Observer learned that 3D printing farms are currently somewhat "dependent on luck": most participants in the industry can only passively wait for the emergence of popular 3D printing products in the market, and then obtain design drawings through various channels and start to receive orders; when there are no popular products in the market, some farmers can only sit idle. Only a very small number of super farmers have a dedicated team of designers who can design original products. "(After the dragon became popular,) now I feel that there is nothing else in the entire market except dragons, and it will collapse sooner or later. Now it feels that it is no longer selling. I have a friend who has six or seven stalls in Chengdu, and now he is losing money every month." When talking about the popular dragon products in the current 3D printing field, Diao Lei said.
On the Amazon US platform, the Economic Observer noted that the monthly sales of the two 12-inch 3D printed dragons with the highest sales rankings are more than 1,000 sets, priced at $9.99; the price of dragon eggs is also $9.99. Judging from the comments, most of these products were bought by users as toys for their children. According to Ma Xuan's observation, the current prices of 3D printed dragons and dragon eggs have fallen by about 30% from the peak period. "Farmers who have their own design capabilities and find their own special customer groups will not be greatly affected. At the same time, some head farmers have stable sales channels, and they are actually doing well, and they have the right to speak. The profits of small farmers who can only accept second-hand or third-hand orders will be squeezed. The advantage of farmers is either the ability to design or the sales channels. If they have neither, they will be eliminated sooner or later." Tan Wenjie said.
In Tan Wenjie's view, 3D printing farms are essentially a variant of 3D printing services. With the diversification of technology, such as the use of AI modeling technology, the introduction of metal materials, the addition of traditional computer numerical control (CNC) equipment such as lathes, and the provision of stamping services, 3D printing farms are expected to be upgraded to 3D printing factories.
In this context, the challenges currently faced by domestic 3D printing farms are not actually at the technical level, but in the objective reality that there are few hit products due to lack of creativity. "On the one hand, we need to focus on design, and on the other hand, the market. Only with good design can a large number of buyers be willing to pay. The buyers mentioned here mainly come from two aspects, first of all, foreign cross-border e-commerce, then domestic offline stalls, online Douyin stores, 1688, Taobao and other e-commerce platforms. The overall development direction of 3D printing farms in the future is one is factoryization, they are no longer just producing toys, but with the improvement of equipment and material performance, they will produce industrial parts, walking on two legs; the other is specialization, doing original personalized customization for special groups." Tan Wenjie said.
When talking to the Economic Observer reporter about potential hit products in the future, Ma Xuan joked: "Mid-Autumn Festival and National Day are coming soon, and there are no eye-catching products on the market. Now everyone is still busy fighting dragons. Who will they sell to when the time comes?"
(At the request of the interviewee, Ma Xuan is a pseudonym)
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Zheng Chenye, reporter of Economic Observer
Shenzhen News Department Reporter
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