Depreciation legislation contributed to manufacturing recovery
January 10, 2012
A recent prediction from the Association of Manufacturing Technology (AMT) forecast "continued but slower growth" in the industry in 2012, PlasticsToday reports.
Last year saw a resurgence in manufacturing technology orders, with the year-to-date total (as of December 26) at the second highest dollar amount in the past 15 years - something experts attribute in part to the accelerated depreciation
tax break offered by the federal government.
"Our research says it had some impact on people's willingness to drive investment sooner, and to get the added incentive is beneficial," AMT president Douglas Woods told the news source.
Woods noted that another driving factor was likely the fact that companies have "a lot of money on the sidelines … and nowhere else to go" so they elect to upgrade their fixed assets
or expand their fixed asset
registers after a period of lean spending that generated pent-up demand.
An AMT report found that another likely reason was the aging of equipment. Manufacturing technology orders were highest in the Midwest, which has the oldest equipment in the nation.
Having a solid fixed asset tracking
system in place is especially important during periods of high turnover, when old equipment is being retired and replacements brought in.