VIP, September 2005

September 27 , 2005
Your newsletter for tips on selecting manufacturing technology. In this Issue... Sponsored by JobBOSS

1.) Question of the month --- Winning with hidden assets
2.) Tips on financing options to upgrade capital equipment
3.) Hot products
4.) Manufacturing education and training - Industrial Hydraulics, and Election Drives and Controls

Newsletter sponsor

JobBOSS is most widely used shop management software for the metalworking industry with bar-code data collection, performance analysis, and contact management. Nearly 4,000 hi-tech shops and more than 21,000 shop technology system users rely on JobBOSS for quoting, scheduling, costing, purchasing, inventory, shipping, and quality control. Click here to find out more. Question of the monthWinning with hidden assets

Does your company have a host of hidden assets that can be utilized to improve your business and make it truly successful? Bruce Vernyi, editor-in-chief, encourages you to draw upon teamwork, dedication, performance, and a host of resources to develop a competitive asset. Is this a skill that you possess? Send Bruce Vernyi, AM's Editor-in-Chief your opinion, story, questions, comments, or suggestions.

Online Product Demonstration If you are considering a shop management and control solution, take a close look at the industry leader: JobBOSS. Click here to view a FREE 10-minute audio overview or interactive demo. If you have any questions, you can speak with a JobBOSS representative at 800-777-4334

Tips on Selecting
Financing options to upgrade capital equipment

First, a decision must be made whether to buy or to lease new equipment. Generally, the cost of leasing is comparable to that of other financing options, considering the entire transaction. But leases are not loans, and their costs are figured differently. Leases take into account that the equipment has a residual value at the end of the lease term. Residuals are built into lease pricing, usually making lease payments lower than loan payments.

When comparing loan versus leasing options, consider length of ownership, cash flow, tax incentives and ability to obtain financing. For long-term ownership, seven years or more, a loan is usually the best choice since equipment is an asset and offers equity value. For short-term use, three years or less, equipment can be easily upgraded to meet changing needs with a lease. If cash flow is tight, a lease may also be the better option, even if long-term ownership is planned. A lease requires no down payment, provides an immediate write-off of the dollars spent, and soft costs—such as installation and training—may be included in the finance agreement. Be wary of oral agreements, and be sure to understand the provisions in a contract before signing it.

Recent changes in the tax code and segregating assets for tax purposes allow for accelerated depreciation of certain assets, resulting in a considerable tax savings. Where a shop is located can qualify it for a number of local enterprise-zone credits and incentives. Small businesses may also receive incentives. Those that qualify are eligible for several Small Business Administration (SBA) loan programs.

Hot Products

New Compact, Fast, 5X VMC with High Volumetric Accuracy

Mitsui Seiki's Vertex 550-5X is the new machine with Mitsui's legendary precision, a compact footprint, ample work envelope for complex parts, and a competitive price.NEIDLEIN FACE DRIVERS FROM LMC WORKHOLDING