Every time the economy slacks, there are companies that use the down trend to their advantage.  During growth periods many companies need to channel their resources into sales and support versus research and development. This can slow innovation and delay the roll out of new initiatives. This will reverse in a slower market. Other companies remain aggressive with their marketing, recognizing that many of their competitors will reduce their marketing efforts which makes it easier for them to build awareness that will translate in to market share when the market swings back.

For most manufacturers, market contraction tends to reduce in the rate at which companies evolve and move into new equipment or processes. This provides an distinct opportunity for companies that continue to advance. If you can use a down trend to force needed changes and new efficiency in your business, it will provide long term advantages. Supplementing process changes with new equipment that is faster and more automated, will deliver an even greater advantage. With the horizon on the capital equipment tax incentive possibly dut to expire next year, now is the time to consider this carefully.

Expensing equipment more rapidly can not only cut your tax bill, but it can translate into a long term reduction in cost of operation that will pay divedens. So now is the time to consider it because it is either an opportunity or a threat, and the clock is ticking. Here is a link to more information on the Section 179 tax law, it includes a cost saving calculator.