Scaling Distributed Manufacturing in the Global South
Deep dive report
Through four pilots at the FT Hub, we’ve been surfacing learning about the potential to scale distributed manufacturing in different contexts. This deep dive aims to collate the learning from our pilot portfolio, and extend it with six additional case studies. Both to clarify what distributed manufacturing is, and to develop a framework of strategies to approach scaling it in the Global South. From this framework, we’ve suggested recommendations for what different organisations can do to support scaling of distributed manufacturing, and suggested questions that remain to be answered such that more distributed manufacturing projects have the potential to scale.
What we’ve discovered about scaling distributed manufacturing in the Global South
There is no generally accepted definition of Distributed Manufacturing (DM). It can be understood as a decentralised approach to production that enables smaller-scale manufacturing much closer to the end-user, often leveraging recent breakthroughs in production and infrastructure technologies. In this model, products are designed, produced, and distributed through a network of local or regional manufacturers, rather than being manufactured at a centralised location and shipped to customers. Three dimensions have been identified on which distributed manufacturing models differ:
Product Variety, or how flexibly a workshop can produce different items;
Network Type, or a typology of nodes and networks built around them;
Degree of Coordination, or how closely coordinated the different nodes are.
A review of the evidence for scaling DM in the Global South suggests that it is still early to point to certain approaches to scaling being more successful than others. As such it can be more useful to point to different strategies that will enable success at the micro, meso and macro level. We can group these factors in five groups
Make: relating to making products
Sell: relating to selling products in the market
Operate: relating to operating the organisation that does the making & selling
Collaborate: relating to working with other stakeholders in the DM ecosystem
Invest: relating to the need to invest in order to grow or scale DM
A full list of strategies for each at a micro, meso and macro level can be found in the report.
One overarching finding from all case studies and discussions is that DM organisations and initiatives are internalising costs to do things that could be more efficiently provided at the ecosystem level or even globally. This means that the costs are higher and sales lower for DM organisations than they would otherwise be; this makes it more difficult to scale, which in turn inhibits the growth of the ecosystem that would lower costs and encourage sales.
Beyond a single organisation or company, efforts to scale DM must take into consideration the development of ecosystems. In other words, identifying and strengthening systems of actors and stakeholders that can work together to achieve shared goals. That will aid in promoting local economic development and building local manufacturing capacity, in an environment that fosters collaboration, innovation, and the sharing of resources and knowledge. This approach involves building partnerships across different sectors and industries, creating networks of support and resources, and developing shared standards and protocols.
Outstanding research and evidence gaps and priorities for future pilots to explore
What are the real economic costs and benefits of DM versus traditional manufacturing models in a globalised world in crisis?
How can socially and environmentally responsible models of procurement be effectively implemented by all actors in the development space?
How can DM be integrated into broader development strategies and initiatives in the Global South?
More information
Other useful resources if you’re considering applying to Frontier Technologies Livestreaming, or are looking to support testing and scaling distributed manufacturing in the global south more generally.
Policy Brief: Routes to Resilience through Distributed Manufacturing and Circular Economy Approaches
View learnings from our blockchain pilots:
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