Hot Off the Press
Economic Stimulus Package
Delivers Huge Benefits to Manufacturers
Thursday, February 21, 2008
The Recovery Rebates and Economic Stimulus for the American People Act of 2008, recently signed into law, does more than just benefit individuals and families--it delivers huge tax relief to manufacturing companies, according to a press release issued by AMT—The Association For Manufacturing technology. First, businesses will receive a 50-percent bonus depreciation for new capital expenditures ordered and placed into service during 2008. Bonus depreciation allows businesses an extra one-year boost in how much they can deduct on capital expenditures that depreciate over time. For example, under the old law, according to AMT, a new $100,000 machine could provide a 2008 depreciation deduction of 14 percent, or $14,000. Now, first-year depreciation climbs to $57,000--half of the purchase price plus the 14-percent regular depreciation on the remaining property basis.
The new law also more than doubles the amount that small businesses can write off for new or used equipment purchased during 2008, from $128,000 to $250,000. And, it significantly increases the amount that can be purchased during the year and still allow manufacturers to receive the full benefits of the Section 179 expensing option--from the previous cap of $510,000 to $800,000.
Download a PDF explaining the benefits further at
Manufacturers Optimistic Despite Stumbling Economy
Wednesday, February 20, 2008
Small and mid-sized manufacturers exhibit optimism regarding the economy in 2008, and most plan significant capital improvements during the year, according to a January survey conducted by the Chicago, Il-based Prime Advantage, a manufacturers’ buying group. Nearly half of its members (46 percent) list raw materials (including stainless steel, nickel and copper alloys and plastics) as their primary concern for the year, with energy costs ranking second (17.5 percent) and costs related to logistics and supply-chain management running a close third (16.4 percent). Rounding out the list of concerns: inflation, labor, foreign competition, overhead costs and healthcare costs.
The survey also finds that more than half (66 percent) of Prime Advantage member companies plan significant capital improvements in 2008, including investments in new press brakes, turret punch presses, laser-cutting machines, robotic-welding cells and metal-stamping equipment. This finding is supported, the group says, by findings from the Business Roundtable’s CEO Economic Outlook survey for the fourth quarter of 2007, in which CEOs predicted a 35-percent increase in capital spending during the first six months of 2008.
Learn more about Prime Advantage and its more than 450 member companies and 110 endorsed suppliers, at www.primeadvantage.com
Buffalo Stamper Welcomes 1000-Ton Mechanical Press
Tuesday, February 19, 2008
P&G Steel Products, Buffalo, NY, has added a 1000-ton mechanical transfer stamping press to its pressroom. The press has a bed size of 120 by 48 in. and will operate in line with a heavy-duty Sesco feed line with sheet-thickness capacity of ½ in. Also on the to the facility is a 46-in. double-spindle vertical grinder. The equipment additions will help P & G, a metal stamper with more than 25 presses, robotic-welding cells and CNC production-machining capabilities; satisfy requirements for a 4-yr. agreement with a new customer. Learn more at www.pgsteel.com