The Great Wall of Additive Manufacturing: How China's Subsidies Threaten U.S. Competitiveness

Authored by Seurat's CEO, Co-Founder & Co-Inventor, James DeMuth

Seurat manufactures customer parts at 40hz printing speed.

The United States is on the verge of repeating a costly mistake that could jeopardize its position as a global leader in manufacturing. Just as it ceded dominance in solar panel manufacturing to China after developing the technology here, the U.S. now risks losing its competitive edge in the crucial field of Additive Manufacturing (AM) due to a lack of strategic action.  

Metal AM allows any geometry, complicated or simple, to be produced layer by layer, adding material only where needed. Traditional manufacturing techniques form objects by the subtraction of material from a larger block (i.e. machining) or require extensive molds and tooling (i.e. Casting and Forging). AM is crucial for the next generation of commercial and defense technology, offering design innovation, as well as stronger, lighter, and faster-to-market parts.  

Today, American innovation, competitiveness, and readiness are threatened by heavy Chinese government subsidies of its domestic AM companies. AM Research states that the Chinese AM market is “one of, if not the, fastest growing [AM markets] globally … thanks in large part to government stimulus”. This provides Chinese companies with a competitive edge in research, development, and production. China’s aggressive strategy, coupled with numerous country-wide and province-specific policies focused on modernizing its industrial infrastructure and Additive Manufacturing practices, will inevitably result in China's increased role in the AM market.  An article in the Summer 2024 issue of Metal Additive Manufacturing highlights the success of these policies “…a fair case could be made for saying that, at least in some respects, Chinese (AM) industry has pulled ahead of its peers in the West.”.   

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If the U.S. fails to quickly respond through investments, incentives, and strategic policy, it may never recapture the lead from China...

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If the U.S. fails to quickly respond through investments, incentives, and strategic policy, it may never recapture the lead from China in this vital industry that is transforming manufacturing for national security, infrastructure, energy, communications, and consumer goods sectors. 

The consequences of allowing China to control the AM market are grave. Aggressive price competition and innovation subsidies from China could devastate the global (and explicitly the United States’) AM industry. This would not only stifle innovation and investment in the U.S., and globally but also undermine our national security interests by making us reliant on Chinese AM supply chains (and the IP transfer they require). Strong U.S. AM capabilities are a key component of the DoD’s flexible acquisition strategy that “…will allow the DoD to optimize for dynamic production and capabilities that strengthen defense supply chains and bolster a modern industrial ecosystem.”.   Consequently, allowing China to dominate AM technology would not only move more high-paying production jobs from the U.S. but also threaten our economic and technological sovereignty.

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For more on how AM enables defense-ready production flexibility, see our blog Modular Manufacturing: Seurat’s Versatile Solution for National Security Challenges.

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To prevent history from repeating itself, we must take proactive measures to safeguard America's position as a leader in Additive Manufacturing technology. This entails advocating for policies that promote innovation, incentivize investment, and ensure a level playing field for American companies. Specific actions can include: 

• Tax Credits for companies that invest in developing AM technology or use additively manufactured parts 

• R&D Grants for projects focused on advancing AM technologies, materials, and factories. 

• Streamline the procurement and qualification processes for AM parts 

Additionally, fostering partnerships between industry, academia, and local governments is crucial to cultivating the skilled workforce necessary for advancing AM innovation. These collaborations should not only emphasize engineering roles but also include comprehensive retraining programs that equip today's blue-collar workers with the skills needed for career progression in the cutting-edge manufacturing techniques of tomorrow. 

At Seurat, we are committed to making scaleable, affordable, and flexible AM a cornerstone of Industry 4.0 and the Fourth Offset Strategy in defense operations. Our proprietary Area Printing® technology is more than just another incremental improvement, it’s a seismic shift that enables us to leapfrog foreign AM suppliers.  However, this cannot be done alone. The support of industry leaders, stakeholders, and policymakers is needed to secure America's position as a leader in this transformative technology.  Together, we can ensure that Additive Manufacturing does not become another example of how China swooped in and dominated a market while the USA stood idly by.

Read this article on medium.com and follow James.

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