High-Accuracy Filling Equipment and Automation Improves Production Operations
One of the most underrated and miscalculated factors in production is filling accuracy and its significant impact on ROI and annual savings.
The U.S. reduction of the federal corporate tax rate from 37% to 21% starting in 2018, paired with new federal tax rules,1 are accelerating plans for automation and modernization in U.S. factories by giving manufacturers incentive to buy new machinery and boost productivity. Currently through 2022, the revised tax code allows companies to deduct 100% of the cost of equipment purchases from their taxable income in the first year. Previously, companies were only allowed to write off a portion of the equipment cost in the first year and the balance over subsequent years.2
These corporate tax changes are encouraging manufacturers to install more automation and replace aging machines sooner than originally planned. Many manufacturers have already increased their capital spending plans for 2018 and beyond. As a result, companies are re-evaluating their return on investment (ROI) policy on new equipment and payback timing.