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Report: US will surpass China as top manufacturing country by 2020

By Alan Kelsky via Multiview Posted, January 19, 2016

On Jan. 4, Reuters rang in the new year with a report stating the United States manufacturing and construction sectors can both look forward to “tepid growth.”

However, a report issued by Deloitte Touche Tohmatsu and the U.S. Council on Competitiveness — “2016 Global Manufacturing Competitiveness Index” — predicts the United States will regain its former position as the No. 1 manufacturing producer in the world, surpassing China by 2020. This study was a result of dozens of face-to-face interviews with chief research leaders, chief technology officers and directors of national research facilities.

On the same date the Reuters article was published, China closed its stock market due to rapidly-falling share prices of Chinese-based companies. The U.S. stock markets took big hits as a result of the problems faced by the Chinese.

Where do the countries rank?

According to the Deloitte report, the United States, Canada and Mexico are currently in the top 10 manufacturing countries and will stay there through 2020. But six countries in the Asia-Pacific region — China, India, South Korea, Japan, Singapore and Taiwan — are also listed in the top 10 or marked for future inclusion in top-10 competitiveness in manufacturing.

With nine slots taken by the North America and Asia-Pacific regions, the pressure is on European countries. Many economists believe all European countries’ manufacturing competitiveness rankings will decline by 2020 — with the exception of Germany, which is currently ranked third and is expected to stay there five years from now. Compare that to the United Kingdom, which is currently ranked sixth but expected to fall to eighth by 2020.

“The 2016 Global Manufacturing Competitiveness Index shows the importance of policy, investment and innovation for company and country competitiveness,” said Deborah L. Wince-Smith, president and CEO of the Council on Competitiveness.

These interviews shine light on the strengths and potential vulnerabilities for U.S. manufacturing.

How can US manufacturing stay competitive?

Craig Giffi, vice chairman of Deloitte, offers some interesting analysis.

“By investing in advanced manufacturing technologies, nations may enhance their competitiveness and drive economic prosperity,” Giffi said. “Investments in research and development (R&D) can lead to advanced manufacturing capabilities. This, in turn, can lead to more complex and exclusive products for export — and these high-tech, often high-value, exports can then make a nation more competitive.”

So, what are these advanced technologies? The study discloses 10 of them.

  1. Predictive analytics
  2. Digital design, simulation and integration
  3. Advanced robotics
  4. Open-source design / direct customer input
  5. Augmented reality
  6. Smart, connected products (Internet of Things)
  7. Advanced materials
  8. Smart factories (Internet of Things)
  9. High-performance computing
  10. 3-D printing and scanning

Giffi also said increases in worker pay is an added benefit of advanced technologies: “The average U.S. worker compensation in advanced industries has increased five times that of all industries since 1975 and is now nearly twice the average of traditional industries.”

It’s clear the U.S. is leading the way in these areas of technology, which will help the country regain the top manufacturing spot.

“American executives consistently feel that our entrenched creativity and entrepreneurial spirit have given us an edge,” Wince-Smith added. “They see especially strong potential in technologies related to the Internet of Things — embedded sensors and connected devices, for example. They also see potential in advanced computing, 3-D printing and next-generation materials.

“And they feel excited about the new opportunities that come from combining these advanced technologies in a synergistic manner.”


 

About the Author

Alan Kelsky

Alan Kelsky is a freelance writer with a master’s degree in business administration from Xavier University with a specialty in healthcare management. Alan was formerly a hospital CEO with an active emergency room and was the CEO of an urgent care center in Pompano, Florida. He is also formerly the owner of Electric Control Services. His company worked with manufacturers and commercial building owners by offering energy audits, energy efficiency technology sales, installation and follow-up monitoring.

(photo courtesy of NASA)

MDNA Member Firm’s surplus used on multiple film sets

(photo courtesy of NASA)
(photo courtesy of NASA)

Through the years, a number of film set decorators have purchased items from (MDNA Member Firm) HGR’s showroom for use on the sets of films being shot in Cleveland, including Captain America and The Avengers. One designer stumbled across HGR about four years ago while trying to track down electrical waste (aka computers) for use on a set.

If you carefully watch the 2011 Avengers film, you can see 9,385 pounds of equipment, including a Sercem automation winder, a welding station enclosure, five germfree S/S fume hoods, an air pressure control, an assembly station, and a neat inspection machine purchased from HGR in two memorable scenes:

  • At the beginning, Black Widow is fighting off Russian mobsters and tangles one with chain hoists. Yep, the hoists came from HGR. And, the opening scenes were shot at the Space Power Facility at NASA Glenn’s Plum Brook Station in Sandusky, Ohio (pictured above)
  • In another scene in Loki’s lair, Dr. Erik Selvig, played by Stellan Skarsgard, and his minions are working with machinery on the Tesseract. The machinery, originally from a pill factory, was purchased from HGR. This scene was shot under an unfinished transit bridge in Cleveland.

Ever wonder what happens with the items used on a film set after the movie has been finished? The film company containers it and ships it to Los Angeles then keeps it in storage for six months to a year in case it needs to reshoot scenes. After that, it is scrapped, sold to a company such as HGR, or the film company has a huge studio sale, often advertised on Craigslist. Who’s up for a trip to L.A.? If not, you always can come to HGR’s showroom to see the stuff from which science fiction/fantasy films are made.

Story courtesy of HGR Industrial Surplus (MDNA Member Firm)

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Oprah Winfrey’s Studio gets Auctioned off by MDNA Member Firm

By Paul Finn,  Joseph Finn Co. Inc. 

Oprah Winfrey. Not a name you usually associate with auctions. Definitely not a name you associate with industrial auctions. But this year Oprah’s Harpo Studio sold off millions of dollars of state-of-the-art equipment in a two day auction conducted by (MDNA Member Firm) Joseph Finn Co. Auctioneers.

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As with any auction of this magnitude, one of the largest sales of its kind ever in Chicago, it was extremely complicated. When Winfrey took over Fred A. Niles Studio in 1988, she and her partners invested millions of dollars. Twenty-five years later, Winfrey moved her production to Hollywood, leaving behind what had grown from a 90,000 square foot stage complex to nearly a whole city block filled with equipment. It was a veritable cornucopia of broadcast equipment, including HD cameras, lenses, teleprompters, techno cranes, lights, mixers,

“The complex was nearly a whole city block. It was

a veritable cornucopia of broadcast equipment.”

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microphones, and of course, receivers, headsets, and miles of cables. In an interesting decision, the auctioneers decided to have an online only sale. This made it much more manageable given that there were over three thousand lots. But this further affirms the potency of the online auction. Certainly, it must have been tempting to fill up Oprah’s former studio with live bidders. In the end, the sale did not disappoint, with over 800 registered bidders and more than 400 winning bidders. And with the global reach of the online auction, the sale was able to attract buyers not only from across the United States, but across the world, including Denmark, Israel, the United Arab Emirates, India, and as far away as Australia. The debate about whether or not to have a live auction component will continue, but there is no question this sale demonstrated the power and efficacy of the online auction. The Internet will continue to erode many traditional mediums, but we know one thing for sure – Oprah can still bring ‘em in and that’s the power of television.

john josko

Members Share Valuable Lessons Learned for 2016

As we make our way into the NEW YEAR of 2016, it’s important to look to the past to see what lessons can be gleaned. We asked a few MDNA members to tell us something important they’ve learned. Here’s what they had to say…

john joskoOver the years in this industry I have learned that you must continue to educate yourself and never close your mind to learning new things or new ways of doing something you think you know how to do.  —John A Josko, Industrial Asset Appraisals & Consulting, Inc.

 

         “MANAGEMENT IS DOING THINGS RIGHT –

LEADERSHIP IS DOING THE RIGHT THING”— Terry Yoder, Yoder Machinery Salesterry yoder

 

 

Paul Lashin, Prestige Equipment says “The main thing I’ve learned (and keep learning) is Paul Lashin that no matter how advanced our means of communication get, nothing beats a personal phone call, or better yet, sitting down over a steak and a Martini, to help develop a relationship and get a deal done.”

brian swain

 

“Never make the same mistake twice!”

Brian Swain – President, PlastiWin Capital Equipment, LLC

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New Director of Sales for Wire and Plastic Machinery Corp.

MDNA Member Firm, Wire and Plastic Machinery Corp. hires Erik A. Macs as the erik macsnew Director of Sales of Bristol, CT. Mr. Macs has over 25 years of experience in wire and cable machinery sales. Previously, he had been involved with ebeam crosslinked wire materials research at Judd Wire, blown film packaging manufacturing at Union Camp, extrusion and injection molding processing at Dennison and Teflon film heat sealing and thermoforming research with American Durafilm. He has a degree in mechanical engineering from Central New England College. He has been a member of the Wire Association International since 1991 and was the recipient of WAI’s 2013 Donnellan Memorial Award, which honors an individual’s contributions to the Association, as well as WAI’s 2004 President’s Award for extraordinary volunteer service. He served two terms on the board of directors of WAI. He is still a member of the Education Committee, Member Relations Committee, and Paper Awards Committees. A former director of the New England Chapter of WAI, he also served as that chapter’s president in 2000. He developed the seminar “Introduction to Insulated Wire Manufacturing” which was presented by the New England chapter in 2001 and 2002. He has also chaired the Fundamentals of Wire Manufacturing program since 2007, frequently serving as a course moderator and presenter.
Erik and his wife, Laura, have been married since 1986 and have one son, John (24). They currently reside in Natick, MA.

wire and plastic logoMDNA Member Firm, Wire and Plastic Machinery Corporation deals in used and rebuilt machinery around the world for the Wire and Cable and Optical Fiber industries and has 7 US warehouses located in CT, MA, RI, NC and TX.

government

Section 179- President Signs Tax Extenders Bill

Posted: 12/21/15

On Friday December 18, President Obama Signed the $1.8 Spending and Tax Bill Into Law.  Earlier on Friday, the Senate gave final congressional approval to the bill, which includes nearly $700 billion in tax breaks.

The legislation extends more than 50 expiring tax cuts, with more than 20 becoming permanent, including increasing the maximum amount for small business expensing under IRS section 179 to $500,000.  This would be reduced if the cost of section 179 property placed in service exceeds $2 Million.

The new permanent Section 179 expensing limit allows a business to take a current year deduction of the full purchase amount up to $500,000 for assets under $2 Million.


 

Posted: 12/18/2015

Increased Expensing Passes/Made Permanent

The Senate has now done its part and passed a year end budget deal that funds the U.S. government through September 2016, avoiding a shut down.  This was combined with a package of tax breaks providing much needed tax benefits to a broad spectrum of small businesses.  The bill now heads to the President for his signature, which the White House indicates he will sign.

The legislation extends more than 50 expiring tax cuts, with more than 20 becoming permanent, including increasing the maximum amount for small business expensing under IRS section 179 to $500,000.  This would be reduced if the cost of section 179 property placed in service exceeds $2 Million.

The new permanent Section 179 expensing limit allows a business to take a current year deduction of the full purchase amount up to $500,000 for assets under $2 Million.

Example Savings*

Original Equipment Cost:                  $500,000

New Potential Tax Savings:               $175,000

Final Equipment Cost:                       $325,000

  Cash Savings on

Equipment Purchase:                        $175,000

*Assuming a 35% tax qualifying purchase

This information does not constitute tax advice, please check with your tax advisor on how this applies to your business.


 

Posted: 12:18/15

$500,000 Expensing Limit One Step Closer

Today, the House of Representatives passed a $1.1 trillion dollar spending bill to keep government agencies open.

The bill now goes to the Senate, where it will be combined with a package of tax breaks which passed late yesterday afternoon, one of which is the permanent increase of the expensing limit of IRS Section 179. 

The Senate will then take up the combined package in a series of procedural steps and a final vote expected by early Friday (12/18/15) afternoon.

The White House has reported that President Barack Obama would sign the measure into law.



Posted: 12/17/15

THE SECTION 179 ROLLER COASTER MAY BE COMING TO AN END

“The House is set to vote this week on Speaker of the House, Paul Ryan’s sweeping $1.6 Trillion dollar budget deal.  If the current bill (H.R. 2029 Protecting America from Tax Hikes Act of 2015) passes, the yearly battle to get increased expensing limits under the IRS section 179 will finally be over.  The bill will permanently raise the limit to $500,000.

If the bill passes, it will not only increase expensing limits, but there are a number of other provisions that will be beneficial to MDNA Members and small businesses.” —MDNA Executive Vice President Mark J. Robinson

government

The current language in the bill reads:

SEC. 124. EXTENSION AND MODIFICATION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

(a) Made permanent.—

(1) DOLLAR LIMITATION.—Section 179(b)(1) is amended by striking “shall not exceed—” and all that follows and inserting “shall not exceed $500,000.”.

(2) REDUCTION IN LIMITATION.—Section 179(b)(2) is amended by striking “exceeds—” and all that follows and inserting “exceeds $2,000,000.”.

Read the full bill here

government

The Section 179 Roller Coaster May Be Coming to an End

“The House is set to vote this week on Speaker of the House, Paul Ryan’s sweeping $1.6 Trillion dollar budget deal.  If the current bill (H.R. 2029 Protecting America from Tax Hikes Act of 2015) passes, the yearly battle to get increased expensing limits under the IRS section 179 will finally be over.  The bill will permanently raise the limit to $500,000.

If the bill passes, it will not only increase expensing limits, but there are a number of other provisions that will be beneficial to MDNA Members and small businesses.” —MDNA Executive Vice President Mark J. Robinson

government

The current language in the bill reads:

SEC. 124. EXTENSION AND MODIFICATION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

(a) Made permanent.—

(1) DOLLAR LIMITATION.—Section 179(b)(1) is amended by striking “shall not exceed—” and all that follows and inserting “shall not exceed $500,000.”.

(2) REDUCTION IN LIMITATION.—Section 179(b)(2) is amended by striking “exceeds—” and all that follows and inserting “exceeds $2,000,000.”.

Read the full bill here

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MDNA Tri-Chapter Meets in Atlantic City—Meeting Re-CAP

On December 3rd MDNA’s Philadelphia, New York/New Jersey and New England Chapters hosted their annual Tri-Chapter meeting.  This year’s meeting took place at the Borgata in Atlantic City, New Jersey.

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Here’s what some of the MDNA members who attended had to say about this year’s programming….

“I’ve been attending meetings for the past two years now on behalf of zac Smith absolute machineryAbsolute Machinery, and each meeting seems to one-up the last. As a member of the New England chapter, it is always nice to venture out and meet members from other chapters, and Thursday night in Atlantic City at the Borgata Casino and Hotel was another great example. As a younger member, it is always nice to meet members from different chapters and from a networking standpoint, there is nothing better than the MDNA.

At the Tri-Chapter (NY, Philly & NE) meeting, there was a great “Price is Right” themed icebreaker that peaked everyone’s interest, and kept the mood light and exciting. Terry Lashin also spoke for a while about a very interesting and relevant topic; international business. He spoke on a few points from freight forwarding, to cargo insurance, international business ethics and how to stay away from bad deals. Overall he hit some very key points that I believe helped raise awareness of not only the benefits, but also what to be on the lookout for when conducting business overseas for everyone in attendance.

Regardless of what the topic is at each MDNA meeting, you always walk out of each meeting learning something new that pertains to your industry, and with new contacts that you now have the opportunity to conduct business with, and in the end, make money. Whether it’s sharing leads that you come across in your industry that you might not be as familiar with, or partnering up on a deal, the MDNA is a great network of great people.

I was also able to meet Richard Bass and Meghan McLellan of the AMEA, and look forward to earning my certification with the AMEA in the near future. With that said, you could also say the MDNA is a great tool for furthering your education and credibility in your industry.” -Zac Smith, Absolute Machinery Corporation

“Great meeting, learned a lot from the group sharing experiences on the pitfalls of theSTEVE Brenner Prime Machinery Import/Export side of the machinery business” —Steve Brenner, Prime Machinery, Inc

“I thought the tri chapter meeting at Atlantic city / Borgata hotel was very successful, out of all the MDNA meetings I have attended, this was one of the most influential and interactive meetings so far. There was a lot of Matt Schulman Grand Marshall Machineryengagement between other dealers, auctioneers, repair services etc.. It was a great opportunity to network with eachother and I enjoyed the “Ice Breaker” it was a great chance to see other dealers equipment and put everyone’s mind to the test.”Matthew Schulman, GRAND MARSHALL MACHINERY

“Last night’s tri-chapter meeting at The Borgata in Atlantic City had everything that one could possibly want in an MDNA meeting:  a fun and informative machinery valuation icebreaker for AMEA credit, instruction on how to close more deals by getting quick and easy financing for your WillCroppedcustomers via Direct Capital, valuable education and advice regarding importing, exporting, and establishing overseas business relationships, and maybe most importantly an opportunity to meet, mingle, and network with fellow MDNA members in a fun and unique environment. Meetings like this are exactly why North American Machinery Sales has been a member of the MDNA for many decades now.” — Will Putney, North American Machinery Sales

Special Thanks to Event Sponsors

Clark Machinery Sales, LLC

clarkmachinery_hi res logoDirect Capital Corp.  direct captital logo

Capital Recovery Group LLC

CRG logo low resThe Branford Group, LLC 

branford group logo

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Recap: Fall Southern Regional Chapter Tour

On November 12th, 2015 MDNA’s Southern Regional Chapter met for an action packed three day outing spanning parts of North & South Carolina featuring a golf outing, multiple machinery warehouse tours and even a football game and tailgate!golf nc

On day one the group kicked the event off with a fun golf outing courtesy of MDNA Member Firm, Asset Sales, Inc. at Rolling Hills Country Club located in Monroe, NC.

Day two’s agenda began with a warehouse tour at MDNA Member Firm R. P. Machine Enterprises, Inc. located in Statesville, NCR. P. Machine Enterprises, Inc. carries a large gear machine inventory as well as providing reconditioning services for all types of machinery.

(Pictured below) Richard Piselli, President of R.P. Machine Enterprises, Inc. leads guests around their facility demonstrating what goes on behind the scenes.

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After lunch the group headed over to MDNA Member Firm EDM Systems, LLC, located in Statesville, NC. EDM Systems specializes in servicing the EDM market in North America. The tour was led through EDM’s over 17, 000 square foot warehouse getting an insiders’ look at their expansive inventory of used EDM machines.

(Pictured below) Tim Harwood Developer of EDM Systems, leads the group tour.

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The final tour of the day was at MDNA Member Firm Champion Machinery Inc.’s  Fort Mill, location. Champion specializes in buying and selling CNC machine tools.

“Champion showed us a lot of machining centers & lathes with good insight into what is selling today” Jim Bowman, Locator Services

(Pictured below) Dale Danahey, President & Owner of Champion Machinery Inc. shows the group around the warehouse in Fort Mill, SC.

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After the final tours wrapped, the group met for dinner (sponsored by Direct Capital) and the MDNA Southern Regional Chapter meeting at Gusto’s Restaurant in Charlotte, NC.

Day three of this event was all about the FOOTBALL! Champion Machinery sponsored a pre-tailgate party before guests went to see the Florida Gators vs South Carolina Gamecocks. It was a tight game with the Gators 24 to 14 against the Gamecocks.

Check out the video (below) of the guys enjoying the opening ceremony before kick-off at the game! For even more photos from the event check out the online album on MDNA’s Facebook page!

A special thank you again to all who attended this event, to each of our tour hosts, R. P. Machine Enterprises, Inc. ,Champion MachineryEDM Systems, LLC and to each of the events sponsors, R. P. Machine Enterprises, Inc. Champion Machinery and Asset Sales, Inc. 

NAM Urges Congress To Make Small-Business Tax Breaks Permanent

NAM Urges Congress To Make Small-Business Tax Breaks Permanent

The Business Journals’ (12/1, Hoover) Washington bureau predicts lawmakers this month will raise, as they did in December 2014, the limit under current law for small businesses to take advantage of a tax break known as Section 179 expensing. However, “business groups want Congress to end the guessing game” on whether that and other tax provisions “will be available in a given year by making these tax breaks permanent.” The Business Journals quotes NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman as urging lawmakers in a letter to make the R&D credit permanent because it “spurs the investment … that leads to new product development and increased productivity.” Her letter “also touted the benefits of now-expired tax breaks such as bonus depreciation … and a ‘look-through’ rule” that lets American manufacturers “‘redeploy foreign earnings from active overseas business operations without triggering immediate U.S. tax,’” relieving those companies of a “competitive disadvantage” globally. Coleman added that by approving at least “a multiyear extension of these provisions,” Congress would provide “a critical bridge of predictability until comprehensive tax reform is enacted.”

Politico (11/30, Becker), in its “Morning Tax” roundup, asserts that business groups are seeking “fast” action by Congress on the provisions, “and they want their priorities permanent.” Politico quotes the NAM as writing, “Making permanent the pro-growth tax provisions important to manufacturers would eliminate the cycle of uncertainty associated with temporary tax extenders, bringing confidence back into investment decisions that fuel economic growth.”

In the association’s Shopfloor (12/1) blog, Director of Tax Policy Christina Crooks explains that due to congressional inaction on the issue so far, “the NAM is taking the fight to social media and is seeking [the public’s] help to push for a permanent or multi-year extension of the temporary tax provisions today, Tax Relief Tuesday.” She asks readers to contact their elected representatives in Washington and urge them to extend the expired provisions, either permanently or on “a multi-year basis.” Crooks also invites supporters to “join the conversation on social media by using #TaxReliefTuesday to urge Congress to act on tax extenders to promote #JobsandGrowth.”