
Charles R. Goulding and Preeti Sulibhavi reveal how 3D printing is revolutionizing the crafting industry, reshaping supply chains, customization, and customer engagement at Hobby Lobby and Michaels.
The crafting industry is undergoing a transformation, with 3D printing emerging as a pivotal force that is reshaping how retailers like Hobby Lobby and Michaels operate. While these stores have traditionally been associated with conventional crafting supplies, the integration of 3D printing technologies is expanding their horizons, offering innovative solutions to supply chain challenges, customization demands, and evolving consumer preferences.
The recent bankruptcies and complete liquidation of Joann Fabric stores, with the closure of the last 500 stores, leaves Hobby Lobby and Michaels as the remaining national craft retailers.
Beyond Cricut: Embracing 3D Printing
Michaels has taken a proactive approach by offering a range of 3D printers and materials from leading brands like MakerBot, 3Doodler, and XYZprinting. This move signifies a shift towards embracing additive manufacturing as a core component of the crafting experience. Hobby Lobby, while not yet offering 3D printers, provides accessories like the 3Doodler Create Plus Plastic Refill Pack, indicating an awareness of the growing interest in 3D printing among its customer base. Michaels sells Cricut machines and the Glowforge Aura Craft Laser, which are very specialized 3D printers with limited functionalities.
Reimagining Traditional Craft Items
Christmas Ornaments: Traditionally, Hobby Lobby and Michaels stock a variety of seasonal decorations. However, 3D printing allows crafters to design and produce personalized ornaments, from intricate snowflakes to custom figurines, offering a level of customization previously unattainable.
Photo Frames: With 3D printing, enthusiasts can create bespoke photo frames tailored to specific dimensions and aesthetics. This capability enables the production of unique designs that cater to individual tastes, enhancing the personalization aspect of home décor.
Door Signs: The demand for customized signage has found a solution in 3D printing. Crafters can now produce personalized door signs, nameplates, and plaques, adding a distinctive touch to homes and offices.
Jewelry-Making: 3D printing has revolutionized jewelry-making by enabling the creation of intricate designs with precision. This technology allows for rapid prototyping and the production of complex jewelry pieces that would be challenging to craft by hand.
Painting Supplies: Beyond traditional brushes and palettes, 3D printing facilitates the creation of customized painting tools, such as stencils and stamps, offering artists new avenues for creativity.
Addressing Supply Chain Challenges
The crafting industry has not been immune to the disruptions caused by global supply chain issues and tariffs. 3D printing offers a viable solution by enabling localized production, reducing reliance on international suppliers, and mitigating the impact of import restrictions.
For instance, the imposition of tariffs on goods from countries like China and Mexico has led to increased costs for imported craft supplies. By adopting 3D printing, retailers can produce items domestically, ensuring a steady supply of products and maintaining price stability for consumers.
Enhancing Customer Engagement
The integration of 3D printing into the crafting retail space not only addresses logistical challenges but also enhances customer engagement. By offering 3D printing services or workshops, stores like Hobby Lobby and Michaels can provide hands-on experiences, fostering a deeper connection with their customer base and positioning themselves as innovators in the crafting community.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
The adoption of 3D printing by Hobby Lobby and Michaels represents a significant evolution in the crafting industry. By embracing this technology, these retailers can offer enhanced customization, address the current tariff landscape, and navigate supply chain challenges, as well as provide enriched experiences for their customers. As 3D printing becomes more accessible and versatile, its role in the crafting world is set to expand, heralding a new era of creativity and innovation.