Your newsletter for tips on selecting manufacturing technology.
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
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.
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.
LMC'S Neidlein face drivers allow the entire OD of a workpiece to be machined in a single operation which helps increase productivity, quality and cost efficiency.Banner's EZ-SCREEN Guarding System guards areas and perimeters without a controller and starts at only $795. Check it out
American Machinist is pleased to announce the re-launch of americanmachinist.com. The site is faster, easy to navigate and more information then ever before.
Click here to visit!
Industrial Hydraulics, and Election Drives and Controls
Bosch Rexroth Corp., a manufacturer of automotive OEM and aftermarket, industrial and consumer products, will offer training classes from October through December 15, 2005, covering introductions, theories of operation, functions of major components, and other fundamentals and applications. The company holds their industrial hydraulics training in Bethlehem, Pa., and Welland, Ontario. Electric drives and controls training will be offered at the company's Illinois and Michigan sites. In-plant programs are available upon request. To verify course offerings and dates, visit www.boschrexroth-us.com and enter web code #US0211.
Coming in October: AMERICAN MACHINIST will focus on Toolholding.
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