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The Official Show News THURSDAY NOVEMBER 9, 2017 DAY 4 McCORMICK PLACE THE OFFICIAL SHOW NEWS SHOWNORTH AMERICA’S LARGEST METAL FORMING, FABRICATING,DAILY WELDING AND FINISHING EVENT TODAY'S EVENTS Experts Discuss Workforce Development and Recruiting Talent SPIN TO WIN 10:00 AM – 2:00 PM, Hall C: Booth C41344 The manufacturing sector is in the territory vice president of Kelly Ser- Making the Case for Early Chance to Win Prizes! midst of dramatic change as new vices, moderated the session. Panel Engagement technologies drive it towards Industry members included: Manufacturers face workforce short- 4.0, the fourth industrial revolution. • Mike Cattelino, apprenticeship One of the principal challenges com- ages daily in key areas within their manager at Fox Valley Technical operations. A major point of the panies face as they travel this path is College finding and developing the new work- panel: those who engage with their force. According to industry analyst • Laura Elsner, workforce communities, including technical high Gartner, “The transition to Industry development manager at DeWys schools and colleges, manufacturing 4.0 requires huge levels of change Manufacturing summer camps for youth, and Manu- and new skills not only within discrete • Warren Long, commodity man- facturing Day celebrations, are ahead functions, such as manufacturing, but ager at Briggs & Stratton Prod- of the pack in filling these positions. also across the entire organization— ucts Group “Manufacturers need to understand touching almost every department • Hernán Luis y Prado, Founder & the advantage of getting workforce and function.” CEO, Workshops for Warriors development started at a much The recent Manufacturing Workforce younger age than they traditionally Symposium underscored the crit- ical problem at hand: the need for educated and skilled manufacturing workers is growing faster than their availability. At yesterday’s expert pan- el session, five experts held a lively discussion before a packed audience that seemed to reflect the industry’s Stop by and spin the growing concern about the workforce wheel for a chance challenge. The topic of the session was “Innovative Approaches for to win prizes! Workforce Development and Recruit- ing Talent.” Brad Beckner, Chicago continued on page 14 Meet the new plasma. XPR300™. See it live at booth A3525. Enter to win a Powermax45® XP at booth B17013 TRUMPF_FABTECH2017_Ad_ShowDaily.indd 1 9/15/17 11:51 AM FABTECH BOOTH A2619 SR-F eX-F RX-F XL-F MEET MITSUBISHI’S COMPLETE LINE OF FIBER LASERS FABTECH is just around the corner – Visit Mitsubishi’s booth A2619 and see how ZOOM Fiber technology is changing the game. Are you moving towards industry 4.0? Learn about Mitsubishi’s Remote 360 application and how it’s revolutionizing business. That’s not all – Press Brake, Automation, CO2 laser, 5-axis laser, milling and turning equipment will all be on display!!! Visit our web site at www.mcmachinery.com MORE FIBER www.mcmachinery.com Follow us on Twitter @mc_mits Visit us on Linkedin Like us on Facebook TRUMPF_FABTECH2017_Ad_ShowDaily.indd 1 9/15/17 11:51 AM ® 4 DAY 4 THURSDAY, NOVEMBER 9, 2017 THE OFFICIAL SHOW NEWS OF FABTECH 2017 Leaving Money on the Table? John Madsen, vice president of consulting-manufacturing R&D tax credits at Black Line Group. As many U.S. manufacturers actively look ing place in their facilities. In reality, if for business opportunities to improve you quote jobs, take orders, build tools, their profitability or their bottom line, one produce products and sell them to your of the most overlooked resources is the customers, you almost certainly conduct ability to use federal and state research R&D activities. and development (R&D) tax credits. The R&D tax credit is a dollar-for-dollar "I am amazed at how many manufactur- reduction of your tax liabilities that pro- ers do not realize or understand the IRS's vides potentially significant sources of definition of R&D tax credits,” says Ben- unexpected cash for manufacturers of all jamin Rashleger, president and CEO of sizes, including custom manufacturers WSI Industries, a contract manufacturer, that have incurred expenses in pursuit of who discovered the benefits and obtained new or improved products or processes. credits for his company. “If you make or According to Black Line Group, the reg- improve a product or a process, either for ulatory definition of R&D remains much yourself or your customer, you have activ- broader than most people realize. For ities that qualify for the credit. It can sub- example, labor and supply cost spent and or the process to make new parts; This situation changed in late-2015 when stantially reduce your federal and state prototyping or using your resources and designing or developing tools, including federal legislation, the PATH (Protecting tax liability." equipment; costs incurred to quote or ex- dies and fixtures; and activities related to Americans from Tax Hikes) Act became A good number of manufacturers do not periment with different designs and mate- software development—all may generate law. That legislation, in addition to mak- 23706 Show Daily 2017 2.ai 1 9/15/17 8:53 AM believe they have R&D activities tak- rials; the design/engineering of new parts R&D tax credits. ing the federal tax credit permanent for the first time in the credit’s 35-yr. histo- Manufacturers of all kinds, including ry, significantly enhanced how small and those that design and develop their own midsized manufacturers (SMMs) can products, as well as contract manufactur- benefit from the research tax credits they ers and job shops, can take advantage generate, utilizing the following signifi- of the tax credit. Both the customer and cant provisions: vendor (job shop/contract manufacturer) of an R&D part can take the credit. The Eligible SMMs may now claim the cred- customer will have qualified expenditures it against the Alternative Minimum Tax around the ‘product’ development/im- (AMT) to offset AMT for tax years begin- provement activities of the part or com- ning after December 31, 2015. ponent, and the vendor will have qualified Some start-up companies may offset pay- expenditures associated with developing roll taxes with the credit—in tax years be- the ‘process’ for making the part. ginning after December 31, 2015, certain If you are unsure of how to navigate the start-up companies can use the research process, or don’t even know where to credit to offset the employer’s payroll-tax start to see if you qualify for the credit, (i.e., FICA) liabilities. you are not alone. How are these changes significant? In “I was skeptical when I first learned years past, a large number of eligible of the R&D tax credit,” explains Tom SMMs (especially S Corporations and Chacon, of MN-based Boring Machine other flow-through entities) did not pursue Corp. “My company did not have what I the tax credit because the AMT prevented thought were true R&D activities. I was them from using the credits they could gen- a job shop just making tools and parts erate. In addition, young companies typi- for my customers. Since I learned about cally didn’t have a need for tax credits be- the tax-credit process, my company has cause their expenditures were higher than received tens of thousands of dollars ev- their sales, thus creating operating losses. ery year in credits. It is like free money to Both new changes will allow a higher num- reinvest in my business.” ber of companies to immediately monetize the credits they generate. New Legislation Enhances Tax-Credit Benefits Until 2016, the reality was that many small and midsized manufacturing companies and their CPAs/tax advisors simply felt that it was not viable to pursue the credits due to specific limitations in the tax code. NORTH AMERICA’S LARGEST METAL FORMING, FABRICATING, WELDING AND FINISHING EVENT Innovation Drives Success Experience Innovation at FABTECH Booth A1819 See why Bystronic continues to be the leader in high performance manufacturing technologies and your key to competitive differentiation. NEW – ByStar Fiber 10kW with ByTrans Extended Designed for Fiber. Unrivaled for Speed. NEW – Xpert 40 Mobile Bending Cell High-Speed Bending meets Robot Automation NEW – Xpert 80 High-Speed Mobile Bending with increased Bending Length and Press Capacity NEW – Xact Smart 160 The Smart Choice in Performance Bending NEW – ByCockpit Real-time Information for Sheet Metal Processing NEW – Bystronic MES Software The Ultimate Navigation System for Production Management Xpert 40 with Mobile Bending Cell Additional Demonstrations and Services: • BySmart Fiber 3kW – Bridging Performance with Lower Investment Costs • Xpert Tool Changer – The Set-up Accelerator • BySoft 7 – Make It Easy • ByFinances – Turning Dreams into Reality Bystronic…Your single source solutions partner Laser | Bending | Automation 800-247-3332 | bystronicusa.com BYSL-437A_Fabtech2017_ShowDaily_Ad.indd 1 9/15/17 4:09 PM ® 6 DAY 4 THURSDAY, NOVEMBER 9, 2017 THE OFFICIAL SHOW NEWS OF FABTECH 2017 Trade Patterns in Flux Dr. Chris Kuehl, FMA's economic analyst and founder of Armada Corporate Intelligence. The U.S. market is immense. It is some- the U.S. are only dimly aware that their jobs the most coveted in the world as the U.S. good that the U.S. exports, and it is also times easy to forget this is the case and are tied to what happens in other countries. consumer is the most dedicated buyer in good that the U.S. imports. These imports what that means to the rest of the world, as the world, and that means that imports are are generally less expensive than they The truth is the U.S. is and has always well as to the business community and the always significant as well. The difference would otherwise be, and that allows the been a highly export-centered nation.
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