The newly passed Tax Cuts and Jobs Act (TCJA) lowers the corporate tax rate from 35% to 21%, — the largest reduction in the U.S. corporate tax rate in our nation’s history. It’s more complicated for small businesses, and you should definitely speak with a tax adviser before you run out and spend that extra 14% of revenue, but many businesses will have a big chunk of change to spend this year.
The Best Way to Use the Money
But how should you spend it? Savvy business owners who make products using industrial fabrics and composite materials will figure out a way to use the money to grow their businesses and get a return on their investment. Investing in a cutting table not only allows businesses to increase production and sell more products, it saves money by eliminating the need to hire more hand cutters to keep up with the growth in sales.
Because a fabric cutting table is more efficient and precise than hand cutting, it also saves money in less wasted material. Autometrix CEO Gil Griego tours a lot of businesses that cut fabric. “In some places, you can’t see the floor. You are walking on fabric,” said Griego. “When I see the fabric covered floor, I see wasted money that the customer can easily recoup by precise, high-speed cutting.”
The sample cut of 15 costumes took the fabric cutting table 21 minutes. It took two of Roberts’ hand cutters and an assistant four and half hours to do the same job.
Noreen Roberts, Owner of Creative Costuming & Designs put off buying a fabric cutting machine for her costume apparel business for years. Her business was so successful, they were turning away 10,000 costume orders each year.
Automation Can Catapult Your Production – and Your Sales
It took Autometrix doing a sample cut for Roberts to really show her what a difference a cutting table could make for her business. The sample cut of 15 costumes took the fabric cutting table 21 minutes. It took two of Roberts’ hand cutters and an assistant four and half hours to do the same job. After purchasing a Radium fabric cutting table, Roberts was able to triple her production. She is working towards quadrupling the number of costumes her business produces. The fabric cutting machine paid for itself within a few months.
Griego sees similar customer transformations all the time. He recognizes what a hard decision it is to part with a large amount of money. “It’s easy to talk yourself out of spending $90K,” he said. “When customers finally make that decision, it is almost universal, almost 100% that they come back and say I can’t believe how scared I was of this. I should have done it sooner.”
Using this tax break windfall to invest in equipment that can simultaneously save your business money and bring in more revenue should be an easy decision. If you haven’t fully explored automation, take a few minutes to watch this video about Creative Costuming and Designs.
Tax Deductions for purchase of Capital Equipment
As a parting note, also remember that Section 179 has an increased deduction limit of $1 million for the tax year 2018, allowing you to keep substantial dollars in your pocket. Go to Section179. org for more information. The 179 deduction also includes software, providing the Autometrix customer a complete patterning and cutting solution for their business.
Here is a free Section 179 calculator where you can run some numbers and see how much you can actually save this year by purchasing that much needed equipment that will take your business to the next level by improving your production and profitability!
Schedule a demo with us so that we can show you how a fabric cutting table can catapult your business.