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US Manufacturers Begin Seeing Benefits From Tax Reform

Following the most recent tax reform legislation passed by the federal government, manufacturers of all sizes have enjoyed

Following the most recent tax reform legislation passed by the federal government, manufacturers of all sizes have enjoyed success in their sectors. This week, White House Press Secretary Sarah Sanders delivered a daily press brief that highlighted how policies outlined in the new tax law have had a positive impact on businesses. One such success story came from Pittsburg, PA’s H&K Equipment.

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Recently Passed US Tax Legislation Has Had A Favorable Impact On The Nation’s Manufacturers.

H&K Equipment’s Story

The company was founded in 1983 by three entrepreneurs and run out of a garage. Today the company has grown to include 200 employees providing services in selling, renting, and servicing lift trucks, container handlers, railcar movers, personnel carriers, yard trucks, and industrial sweeping and scrubbing equipment.

According to company representatives, 2017 had been the company’s best year to date. The success has been attributed directly to the White House’s position on economic and job growth. Tax cuts, in particular, allowed the company to expense new equipment they acquired within the same year and return 50% more on investments made into the company when compared to 2016. According to Sanders, “When they buy more trucks and equipment for their rental fleet, they hire more technicians to service them, buy more service vehicles to transport those techs from customer site to customer site, and buy more parts from their suppliers to keep the rental fleet running. All of this economic activity spurred by the tax bill will result in more jobs, higher wages, and a brighter future.”

A picture of H&K Equipment Headquarters

H&K Equipment’s Success Story Is Just One Of Many Following The Recently Passed US Tax Legislation. Photo Provided By: H&K Equipment

There are currently 566,000 employed by the manufacturing industry in Pennsylvania alone, with an average annual salary of $72,500 for workers. The state generates $85.13 billion according to a 2015 report on manufacturing output. These growth- and worker-focused policies coming from the current US Administration are leading to big benefits for manufacturing outfits in Pennsylvania and across the country. Beyond mid-sized operators like H&K, conglomerates, including AT&T, Boeing, and Waste Management, have all attributed increased commerce and benefits to employees as results of tax reform. 2018 is expected to usher in further progress in US manufacturing investment, expansion, and employment.

US Manufacturing And Production Make Gains In Q4 Of 2017

2017 was a booming year for manufacturing with overall production rising for a fourth consecutive month in December. That resulted in a 2.4% increase year-over-year according to the Federal Reserve. December’s gains dripped slightly from November’s numbers, but the trend gleaned optimism from industry experts and professionals alike. The increase in production for 2017 has been the highest gain since 2014.

A picture of workers and equipment in a manufacturing facility

Manufacturers Big And Small Are Reaping The Benefits Of More Favorable Tax Laws that Facilitate Expansion In Investment And Hiring.

The report from the Federal Reserve released this month pulled data from industrial production, manufacturing, durable goods, and nondurable goods. The biggest gains came from industrial production, which jumped 1.6% from September to October, and nondurable goods, which enjoyed the lion’s share of progress in recovering 2.5% from a September low to its highest show in October.

In related news, overall industrial production was up nearly 1% in December, totaling a 3.6% rise for 2017. Peripherally, utilities and mining rose 5.6% and 1.6%, respectively.

How Encompass Solutions Supports Manufacturers, Producers, And Distributors

Manufacturing, production, and distribution industries are rife with challenges for emerging and established operators alike. With proven experience in each of these sectors, Encompass Solutions puts our award-winning talent to use for clients in organizing, optimizing, and strengthening every aspect of their operations. Utilizing the essential software and tools for functionality in a modern business ecosystem, our expertise in ERP solutions can make all the difference in adapting to change and overcoming the hurdles of growth. Get in touch with our expert consultants today to identify where a robust ERP solution can bring you up to speed and put this administration’s industry-first policies to work for your business.