Daily Insight for July 19, 2012
Daily Insight: Manufacturer explains the ways and means of his business
The ways, but not the means: The need for comprehensive tax reform to help small business plan for the present and their future was again the topic of a discussion before the House Ways and Means committee Wednesday.
Ralph Hardt, president of Jagemann Stamping Company in Manitowoc, Wis. told the committee the changes in the tax code need to keep in mind the particular needs of manufacturers like him.
“More than 70% of manufacturers are structured as S-Corporations or other pass-throughs paying taxes at the individual rate,” Hardt told the committee. “There is a lot of noise in Washington right now about only raising taxes on the ‘wealthy’ to pay for social programs and hopefully balance our federal budget.
“However, as a small business, we may report $250,000 or more in profit, but few manufacturers take those profits home – they are overwhelmingly reinvested in the business and our employees manufacturing in America. The less resources we have due to paying more taxes ties our hands and does not allow us to buy new million-dollar machines that need new employees to run.”
Hardt also is a member of the Precision Metalforming Association and the National Tooling and Machining Association. He said there is a distinction between the perception of ‘wealthy’ taxpayers and the realities of small business owners: “What many policymakers in Washington do not understand is, unlike larger corporations, small manufacturers like us are required to provide a personal guarantee for most loans when purchasing capital equipment or expanding our facilities,” he said. “I just recently signed a personal guarantee for [a] new $270,000 grinder. This means as a small business owner, I have to put my family’s home on the line, and take significant risks if I want to grow my business and compete globally.
“How our businesses are organized and the way we pay taxes has the single greatest impact on our companies and how much we reinvest in the business,” he added. “The uncertainty in the tax code and over what the future holds keeps many manufacturers from investing as much as they should or could to grow their businesses.”
Hardt’s full testimony is available by clicking here.
Spirax Sarco goes social: Spirax Sarco has launched its social media campaign which includes Twitter, YouTube, and Pinterest. The company will be keeping followers up to date with the latest industry news and energy saving ideas.
“We are rapidly moving ahead in the game of social media by creating viral campaigns and creating new customer relations opportunities, but not dropping traditional marketing efforts,” said Stephen Gow, marketing director of Spirax Sarco.
They have already started by tweeting pertinent information to their followers, such as technical tips and training information (http://www.twitter.com/spiraxsarco_USA). This platform allows the company to connect with their audience in a matter of seconds.
Spirax Sarco has also created a YouTube Channel featuring a growing videos library that will be used to introduce products and technical information to prospects.
Add time for Additive Manufacturing at IMTS: Additive manufacturing involves making metal or plastic parts using technologies that precisely build an object by adding layer upon layer of material. "3D printing" is another term to describe this process. For many engineered components, additive manufacturing can't replace machining because the part produced this way still has to be machined to its final dimensions and tolerances. But additive processes do provide a way both to expand the range of forms that can be made easily and to get the part much closer to net shape before machining begins. At IMTS this year, additive manufacturing is an important focus of the Emerging Technology Center.
Celebrate our Leaders Under 40: The deadline is August 1 for the 2012 Leaders Under 40 recognition by Plant Engineering. If you or someone you work with is 40 years or younger and making a significant contribution, submit the information at this link: http://www.plantengineering.com/events-and-awards/leaders-under-40.html
The honorees will be featured in the September issue of Plant Engineering.