{"id":35919,"date":"2018-11-13T19:58:34","date_gmt":"2018-11-14T00:58:34","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/rest-easy-global-giant-additive-manufacturing-as-risk-mitigator\/"},"modified":"2018-11-13T19:58:34","modified_gmt":"2018-11-14T00:58:34","slug":"rest-easy-global-giant-additive-manufacturing-as-risk-mitigator","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/rest-easy-global-giant-additive-manufacturing-as-risk-mitigator\/","title":{"rendered":"Rest Easy, Global Giant: additive manufacturing as risk mitigator"},"content":{"rendered":"

A global giant\u2019s fears<\/strong><\/p>\n

A good night\u2019s sleep might be understandably elusive for Michael S. Burke, CEO of $18B infrastructure design and construction firm AECOM.\u00a0 The scale and variety of risks his firm faces each day are staggering; the firm\u2019s most recent regulatory filings lay out more than 40 of them, ranging from government funding shifts to industry cyclicality.1<\/sup>\u00a0 While many of these risks are beyond his control, Burke could look to one future technology to improve his company\u2019s processes by de-risking them: additive manufacturing (also known as 3D printing).\u00a0 In particular, the technology could address three major risk categories:<\/p>\n

\u00a0<\/em><\/p>\n

Speed.\u00a0 <\/em>AECOM cites \u201cfailure to meet contractual schedule\u201d as a high-level risk across its global construction business.1 <\/sup>\u00a0Additive manufacturing is well-positioned to cut construction times and reduce variability. \u00a0An analysis by The Boston Consulting Group<\/em> (BCG) suggests that \u201cby operating 24\/7 and by reducing onsite glitches and hence delays, 3D printers can cut construction times dramatically,\u201d in part by reducing \u201cdeliveries of building materials\u201d and \u201ccomplex interactions between various trades.\u201d2<\/sup><\/p>\n

\u00a0<\/em><\/p>\n

Safety.\u00a0 <\/em>When AECOM admits its \u201cproject sites are inherently dangerous workplaces,\u201d with risks including \u201cemployee death,\u201d it is not imagining hypotheticals: just this year, an AECOM subsidiary suffered a fatality on a tunnel job-site near San Francisco, and on at least one occasion in the last five years, the U.S. Occupational Safety and Health Administration has levied fines on AECOM for \u201cserious violations\u201d resulting in a fatality.1,3,4<\/sup>\u00a0 Autonomous 3D printers could lessen the need to put workers in the most-hazardous sites, and in turn reduce the chance of fatality or serious injury.<\/p>\n

\u00a0<\/em><\/p>\n

Environmental impact.\u00a0 <\/em>Many of AECOM\u2019s contracts require them to \u201cmanage, handle, remove, treat, transport and dispose of toxic or hazardous substances\u201d in \u201csensitive environmental areas\u201d and in compliance with environmental regulation in over 150 countries.1<\/sup>\u00a0 On this front, BCG also found additive manufacturing to be advantaged, suggesting it could \u201creduce the construction sector\u2019s harmful impact on the environment\u201d by allowing \u201ccontractors to use less material,\u201d enabling \u201cup to 50%\u201d of that material to come from recycled sources, and reducing the need for \u201cseparate structural units.\u201d2<\/sup><\/p>\n

\u00a0<\/strong><\/p>\n

Playing the waiting game<\/strong><\/p>\n

For additive manufacturing to be an attractive risk-mitigation tool for AECOM, it must first be commercially viable.\u00a0 And while publications like The Economist<\/em> may expect \u201c3D printing\u201d to \u201crevolutionise construction,\u201d the headlines are ahead of the reality.5<\/sup>\u00a0 Just how far depends on the application.\u00a0 As shown in Figure 1, by one estimate, whole building- or bridge- scale 3D printing sufficient for AECOM\u2019s infrastructure projects may be nearly 20 years away.<\/p>\n

 <\/p>\n

Figure 1: Estimates of time to full commercial adoption of additive manufacturing, by application<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Source<\/strong>: Romain de Laubier, et al., \u201cWill 3D Printing Remodel the Construction Industry?,\u201d The Boston Consulting Group<\/em>, January 23, 2018<\/p>\n

 <\/p>\n

Given the state of additive manufacturing development, AECOM\u2019s current interest in the technology is twofold: (1) applying the technique, where possible, to building components and models, and (2) partnering with smaller companies innovating in the space.<\/p>\n

 <\/p>\n

Applying the technique has so far been limited to the United States, where The Wall Street <\/em>Journal reported AECOM is \u201cprinting jail cells out of concrete,\u201d in order to \u201cprecisely place openings for plumbing and other fixtures\u201d and ensure security.6<\/sup><\/p>\n

 <\/p>\n

With regard to partnerships, AECOM has been slower to act, signing just one agreement in 2017 with ambitious Chinese 3D printing company WinSun.\u00a0 The pair have been quiet on details of the partnership, though Antonio Ng, AECOM\u2019s Executive Director of Innovation for Greater China, has said publicly that the two promise to \u201cwork together on future construction projects\u201d and send \u201c56 members of AECOM from around the world\u201d to a workshop at WinSun\u2019s facility in China.7<\/sup>\u00a0 Some of AECOM\u2019s competitors, too, seem to have opted for the partnership path\u2014construction companies Vinci and Bouygues have also established partnerships with startups and universities, respectively, on the topic of 3D printing.8<\/sup><\/p>\n

 <\/p>\n

The path forward<\/strong><\/p>\n

Given 3D printing\u2019s potential to substantially reduce risks in AECOM\u2019s processes, the company could more aggressively pursue the technology:<\/p>\n

 <\/p>\n

The short-term: sponsorship.\u00a0 <\/em>With interest and investment continuing to grow in the space, AECOM can move quickly to broaden its set of 3D printing partnerships.\u00a0 This may take the form of projects\/tests with additional startups in different geographies, research with universities, and\/or agreements with larger corporations also interested in advancing additive manufacturing.<\/p>\n

 <\/p>\n

The medium-term: research<\/em>.\u00a0 AECOM could leverage its global scale, relationships, and resources to directly invest in developing cutting-edge technology that would move 3D printing forward.\u00a0 Though it would require substantial investment in human capital and equipment, recent work in autonomous driving\u2014where stalwarts like GM have attracted billions in partnership investment and aim to launch early products by next year\u2014provides a proof point for the type of acceleration possible.9<\/sup><\/p>\n

 <\/p>\n

Open Questions<\/strong><\/p>\n

Though promising, the future of 3D printing in construction is far from clear.\u00a0 As AECOM grapples with it, foundational questions arise: Is 3D printing revolutionary enough to warrant funding research, or should management wait-and-see?<\/p>\n

 <\/p>\n

 <\/p>\n

(790 words)<\/p>\n

 <\/p>\n

 <\/p>\n

Endnotes<\/strong><\/p>\n

1<\/sup> AECOM, September 30, 2017 Form 10-K, http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=131318&p=irol-sec, accessed November 2018, p.18-22.<\/p>\n

2<\/sup> Romain de Laubier, et al., \u201cWill 3D Printing Remodel the Construction Industry?,\u201d The Boston Consulting Group, January 23, 2018, https:\/\/www.bcg.com\/en-us\/publications\/2018\/will-3d-printing-remodel-construction-industry.aspx.\u00a0 Accessed November 2018.<\/p>\n

3<\/sup> Michael Barba, “Twin Peaks Tunnel Construction Resumes After Accidental Death Of Worker,”\u00a0San Francisco Examiner<\/em>, August 12, 2018, http:\/\/www.sfexaminer.com\/sf-twin-peaks-tunnel-construction-resume-accidental-death-worker\/, accessed November 2018.<\/p>\n

4 <\/sup>Occupational Safety and Health Administration, \u201cInspection: 1050255.015,\u201d September 30, 2016, https:\/\/www.osha.gov\/pls\/imis\/establishment.inspection_detail?id=1050255.015, accessed November 2018.<\/p>\n

5<\/sup> \u201c3D printing and clever computers could revolutionise construction,\u201d The Economist, <\/em>June 3, 2017, https:\/\/www.economist.com\/science-and-technology\/2017\/06\/03\/3d-printing-and-clever-computers-could-revolutionise-construction, accessed November 2018.<\/p>\n

6<\/sup> \u201c3-D Printed Buildings Are a Tech Twist on Ancient Construction Techniques,\u201d The Wall Street Journal, <\/em>April 1, 2018, https:\/\/www.wsj.com\/articles\/3-d-printed-buildings-are-a-tech-twist-on-ancient-construction-techniques-1522580400, accessed November 2018.<\/p>\n

7<\/sup> Antonio Ng, \u201cAdditive Construction: From the 3D-Printed House to the 3D-Printed High-Rise,\u201d interview by Michael Molitch-Hou, Engineering.com, <\/em>May 31, 2018, https:\/\/www.engineering.com\/3DPrinting\/3DPrintingArticles\/ArticleID\/17038\/Additive-Construction-From-the-3D-Printed-House-to-the-3D-Printed-High-Rise.aspx, accessed November 2018.<\/p>\n

8<\/sup> \u201cAECOM forms alliance with Chinese 3D printer WinSun,\u201d Global Construction Review, <\/em>May 19, 2017, http:\/\/www.globalconstructionreview.com\/companies\/aecom-forms-alliance-ch7inese-3d-prin7ter-win7sun\/, accessed November 2018.<\/p>\n

9<\/sup> Neal E. Boudette, \u201cHonda Putting $2.75 Billion Into G.M.\u2019s Self-Driving Venture,\u201d The New York Times, <\/em>October 3, 2018, https:\/\/www.nytimes.com\/2018\/10\/03\/business\/honda-gm-cruise-autonomous.html, accessed November 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"

For infrastructure-builder AECOM, additive manufacturing represents a way to address a set of its most-pressing risks–but is the technology ready?<\/p>\n","protected":false},"author":11464,"featured_media":36172,"comment_status":"open","ping_status":"closed","template":"","categories":[4102,5083,1409,37,1832],"class_list":["post-35919","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-3dprinting","category-government-contractors","category-infrastructure","category-innovation","category-risk-management","hck-taxonomy-organization-aecom","hck-taxonomy-industry-construction","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2018\/","yoast_head":"\nRest Easy, Global Giant: additive manufacturing as risk mitigator - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/rest-easy-global-giant-additive-manufacturing-as-risk-mitigator\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rest Easy, Global Giant: additive manufacturing as risk mitigator - 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