When talking about supply chain underperformance, a common misconception is that bottlenecks in transport logistics are the primary cause.
Images abound of ships sitting outside congested ports waiting to be unloaded, geopolitical tensions affecting key shipping routes like the Red Sea, poor infrastructure, or a lack of logistics staff. While these factors and others all contribute to supply chain failures, the reasons are more varied and technical.
Modern manufacturing uses large amounts of specialist alloys. A scarcity of any of these alloys can become a critical supply chain challenge. Energy is one such sector exposed to this. A prime example of a vital alloy is Inconel 718, a high-performance nickel-chromium superalloy crucial for manufacturing components in oil and gas, power generation, and aerospace industries.
Inconel 718’s unique properties – exceptional strength, corrosion resistance, and stability at extreme temperatures – make it indispensable for producing critical components like gas turbine discs, compressor blades, and well-completion tools.
Rather than logistics challenges, the limited supply of raw materials, high demand across multiple industries, and specialized, energy-intensive manufacturing processes contribute to the scarcity and high cost of Inconel 718. This scarcity poses significant issues for energy companies in Saudi Arabia and across the MENA region, which rely on this alloy for critical components in their operations.
Fortunately, there is light at the end of the tunnel. Technology innovations are transforming manufacturing processes and helping overcome alloy scarcity. One solution is using advanced Additive Manufacturing (AM) methods, a case study of how the Fourth Industrial Revolution will impact the economy by combining the digital with the physical. Specifically, additive manufacturing is the process of joining materials to make parts from 3D model data, enabling far more efficient alloy use and, hence, less wastage of Inconel 718.
Additionally, the benefits of AM can be felt at a macroeconomic level; it offers significant positives by supporting localized production, substantially reducing lead times and supply chain risks. Its on-demand, on-site capability is particularly valuable for the energy sector, enhancing operational efficiency and energy security in the GCC.
The industry is also witnessing a shift towards larger-scale AM capabilities, with leading companies investing in advanced equipment capable of producing large, complex parts. These large-scale additive manufacturing technologies open up new possibilities for manufacturing critical parts like large impellers, casings, and heat exchangers directly from Inconel 718 powder. This advancement significantly expands the range of parts that can be produced using AM, addressing many of the size limitations that previously constrained the technology’s application in the energy sector while reducing the amount of Inconel 718 required for manufacturing.
This technological leap is particularly significant for Saudi Arabia, supporting the Government’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil exports. By adopting advanced manufacturing technologies, the Kingdom can more easily localize the production of critical components, reducing reliance on imports and fostering a knowledge-based economy. The result: the Government can improve the Kingdom’s ability to produce large, complex parts locally, not only enhancing supply chain resilience but also positioning Saudi Arabia at the forefront of industrial innovation in the region, turbocharging the development of an energy sector which is critical for meeting the Kingdom’s future energy needs.
The Kingdom is one of the few countries in the region and beyond that is capable of becoming a global player in the metal powder market. The recipe for a thriving industry in metal powder includes a few elements: access to metal mining, access to cost-effective electricity, and a developed local academic institutional base that graduates engineers. KSA has all three, and developing a strong and competitive metal atomization base should be viable and relatively easy to launch.
Additive Manufacturing is the future of manufacturing, and the future is here, not only for the energy spare parts market but across global industries. It is a thrilling time to be involved, as new, innovative techniques are constantly being devised. These techniques allow manufacturers to utilize new materials effectively and, when coupled with industry-specific expertise, produce high-quality parts for all sectors. At Immensa, we are delighted to be leading the charge for the MENA region, creating a cutting-edge advantage and yielding dividends for companies, employees, and governments.