Southwest Regional Manufacturers Association

... your resource for manufacturing in Southwest Florida

Insight on Tax Breaks

Sales Tax Credit Testimonials:

The Smart Companies

As our Screen manufacturing business continued to grow, capacity became a giant bottleneck. We had to search for more efficient methods to produce our products in the limited space we currently occupied. The biggest demand for space was our cutting operation. Cutting the raw materials was also the most labor intensive phase of the process, as well as the task where we experienced the most errors and injuries. Proper/improper layout also accounted for the greatest scrap or highest yield.

During the first quarter of 2013 we attended a trade show and we were introduced to equipment that would automate both the layout and cutting of our products. Through an embedded CADD program all of the products could be nested, decreasing waste dramatically. The program could be designed to automate not just the cutting but for many of the tedious tasks of our operations including labeling for identification and provide a finished edge using a high speed laser system.

The only hurdle to implementing this device was the cost. The system best suited for our operation had an installed price of over $340,000. During the second quarter of 2013 I became aware, through a meeting of the SRMA, of a program by Governor Scott that waived all State Sales Tax on Manufacturing Equipment purchases. This incentive would end up saving us over $80,000.
Today that machine has decreased waste by 12%, improved efficiency by over 25% and reduced the demand for floor space by 50%. For Storm Smart that dinner meeting has put our company in a completely different competitive position.

Thank You SRMA

Brian Rist
President of the Smart Companies 3/1/15

 

 

Polygon Solutions Inc.

During a review of our rotary broach manufacturing operations in 2013, we decided it was time to bring a new lathe into the shop. The lathe allowed us to have more control over part tolerance, mix, design and quality. We began to review costs, establish a budget, and plan a timeline for delivery of another machine into the plant.

Deciding on which machine to buy was not only a challenge due to price, but also due to availability. With manufacturing gaining steam in 2014 after the recession, many of the older and lower cost models were gobbled up quickly, and we were soon comparing what was available with new machines. As we started working with the machine dealer in Tampa we realized how close the cost of buying a used machine was to buying a new machine.

We had heard about the tax credit, but weren’t sure if it applied to us or our circumstances. During an SRMA meeting, we were introduced to others familiar with the rules and were directed to state agency that could give us direction. To our delight we did qualify for the credit, the savings justified the upgrade to a new machine, we were able to add another job in the shop, and our customers are benefiting from the updated technology.

The value of our SRMA membership has been well worth it.

Peter Bagwell, Product Engineer
Polygon Solutions Inc. 3/18/15

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