4Thought Blog


Lean Manufacturing: 8 Steps Manufacturers Should Consider to Reduce Waste

Posted by Concannon Miller on Tue, Feb 26, 2019

The term "lean manufacturing" means different things to different people. However, it can generally be agreed upon that lean manufacturing represents a management philosophy that emphasizes the elimination or reduction of waste in order to increase company profitability. In other words, doing more with less.

Lean manufacturing is often associated with the Toyota Production System (TPS) that helped catapult the car-maker into worldwide prominence. But some industry experts trace its roots back to the Industrial Revolution and Eli Whitney's systemization involving interchangeable parts. Others link lean manufacturing with the Six Sigma set of practices designed to improve processes. In any event, the TPS is often cited as a successful model for implementation of lean manufacturing principles.

Keeping that in mind, consider the following eight steps for applying lean manufacturing to your business operation:

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Topics: Manufacturing

The Wayfair Decision: What Manufacturers Need to Know about the New Tax Rules

Posted by Concannon Miller on Thu, Jan 31, 2019

Last year’s Wayfair decision is a momentous development in the debate over the digital economy’s responsibility for the collection of sales tax. As companies increasingly conduct business across state lines, how states and the federal government craft tax legislation that addresses the evolving definition of “nexus” significantly impacts all taxpayers—including manufacturers.

(Background: In June 2018, the U.S. Supreme Court ruled in the landmark case South Dakota vs. Wayfair that the “physical presence test” for determining if a seller is required to administer sales taxes is “incorrect.” States may now legally require sellers to administer sales taxes, even if the seller has no in-state physical presence.)

While many states offer manufacturers generous sales tax exemptions on certain equipment and machinery purchases, the industry is now faced with new sales/use tax rules that impact both purchase and sale transactions. The Wayfair decision has important business implications manufacturers can’t afford to ignore—lest they wind up with a hefty tax bill they didn’t plan for.

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Topics: Manufacturing, Multi-state taxation

Manufacturers: Are you Ready to Start Exporting?

Posted by Concannon Miller on Thu, Dec 20, 2018

If your company would like to tackle the international market, it's time to evaluate your chances of success.

Manufacturing firms that successfully make the leap generally tend to have a firm domestic base, strong reputations and a quality product. A solid track record is also essential before expanding abroad.

But there's more to it than that. Before taking on the world, realistically examine how your skills and resources fit into a highly competitive global environment. Here are five points to consider:

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Topics: Manufacturing

Cash Management & Obtaining Financing: What Every Manufacturer Should Know

Posted by Andrew Desiderio on Tue, Nov 20, 2018

Cash flow is the lifeblood of every manufacturing company. While many business practices factor into your company’s cash flow, two are especially important: cash management and obtaining outside financing.

Effective and efficient cash management practices can help best administer the money coming in and out of your business. And bank loans can sometimes be necessary to provide your company with a cash flow influx, especially during times of expansion or other capital projects.

Read on for tips for cash controls, negotiating bank loans and your company’s cash conversion cycle.

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Topics: Manufacturing

The R&D Tax Credit: Many Businesses Can Qualify (Video)

Posted by Tony Deutsch on Thu, Oct 25, 2018

The R&D or Research and Development Tax Credit is available to far more industries than you’d think, including manufacturing, construction and software development among many others. You don’t have to develop a new product to qualify; even improving processes can be a qualifying activity. The R&D Tax Credit is one of the most lucrative available as it’s a dollar-for-dollar reduction in tax liability.

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Topics: Business tax planning, Manufacturing

How Much is My Brewery Worth? A Valuation Primer

Posted by Andrew Desiderio on Tue, Sep 25, 2018

Whether you’re looking to buy a brewery, sell a brewery, gift some ownership to a partner or successor, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.

There is no black and white formula for determining what a brewery is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.

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Topics: Manufacturing, Business Valuation, Brewers

New Guidance on Taking Advantage of Expanded Bonus Depreciation

Posted by Concannon Miller on Tue, Aug 21, 2018

Federal tax reform through the Tax Cuts and Jobs Act significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy to claim bonus depreciation deductions.

Although the regs are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017, for tax years ending on or after September 28, 2017.

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Topics: McDonald's management, Business tax planning, Manufacturing, Construction & Real Estate Development, 2017 Federal Tax Reform

Business Growth & Forecasting Tips for Manufacturers

Posted by Harry Pietrouchie on Thu, Jul 26, 2018

It’s challenging to succeed in the manufacturing industry without a plan, or at least some written goals. A basic plan should include your annual budget. Even better, it should include multi-year budgets and projections.

Forecasting may be time consuming, but is a necessary step in predicting and controlling future success. Many of the most successful manufacturing companies we work with not only engage in forecasting, but do so with their entire executive team and on a regular basis. 

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Topics: Manufacturing

Manufacturers: What to Look for in a CPA (Video)

Posted by Andrea Brady on Tue, Jul 3, 2018

There are many lucrative tax benefits for manufacturers. Concannon Miller’s Manufacturing Team is immersed in the industry and is able to identify missed tax opportunities.

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Topics: Manufacturing

Manufacturers: Manage Equipment Assets for Increased Savings, Productivity

Posted by Concannon Miller on Tue, May 29, 2018

As manufacturers look for every opportunity to cut costs, one important area to address is equipment downtime. A breakdown, even for just an hour, reverberates through the manufacturing process.

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Topics: Manufacturing

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