Capitalizing on the Fed Hike
With the new rate changes, companies stand to lose in 2016, however, these few changes could make 2016 a winning year for manufacturing. The goal is to reduce long-term costs while capitalizing on reduction opportunities afforded by the IRS. Rates have long been kept low in an effort to facilitate growth after the recession of 2008. Much of the manufacturing industry has been aware that eventually the rates would have to increase, but many have not properly prepared for the change. Here are some important steps to move your business to the next economic plain.
Invest in New Equipment
Rates are going to continue climbing beyond the current rate, and one of the most important moves for any manufacturer to make is to replace equipment while rates are still reasonably low. Reinvesting in capital equipment now will benefit your company, in addition to, providing an added bump to the economy.
After 2008 many companies had trouble adapting to a weaker dollar, and now that the dollar is gaining ground again, companies are having to retool for a stronger dollar. Many companies that operate internationally are having a hard time selling products due to the strong dollar. Because of this potential loss of income, companies must evaluate how to maintain as little debt as possible and a healthy reserve.
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