[caption id="attachment_26711" align="alignleft" width="108" caption="Clay Stephens"][/caption]
If you are ready to take advantage of growth opportunities, there are valuable reasons to make a move now:
Major tax breaks (100 percent expensing, bonus depreciation plus first year write-offs)
Great time to get bargains from vendors/equipment dealers
Opportunities to move ahead of competitors or move into new markets while others hold back and are uncertain
There is capital available for companies that have shown cash flow in recent years and taken steps to improve liquidity and reduce leverage.
Rates are at historic lows.
Incentives to do it now
If you see opportunities and growth, there are compelling reasons to start the process now. Particularly if new capital equipment can:
Help enter new markets
Not to mention you get to write-off the costs and deduct interest while borrowing at historically low interest rates.
Major companies are reporting near record profits from aggressive re-tooling and improving productivity. It is good time for small/medium-sized companies to evaluate their opportunities to grow and upgrade as well.
Here are some reasons now to look for opportunities to grow your business and some predictors of growth and economic rebound:
• U.S. machine tool consumption is up 62 percent to date in 2010.
• Intel reported profits up 59 percent and sales up 18 percent and announced plans to invest $6 billion-plus in new facilities in Oregon and Arizona, creating thousands of construction and permanent jobs.
• Heavy duty truck production is strong in 2010.
Meanwhile, U.S. News reported four signs the job market is finally improving:
• Record layoffs of ’08 and ’09 seem to be over.
• Major sectors like manufacturing, transportation, retail are hiring.
• Workers with specialized skills are hard to find.
• Private sectors are adding jobs. Private sector hiring has increased every month this year, a gradual but positive trend. Net job losses are due to lay-offs in the government sector.
Here are some more factors to consider:
• For all U.S. companies, the Commerce Department estimates profits are up 26 percent from a year earlier. The data indicates that big companies are recovering faster and more strongly than the overall economy.
• There is a lot of liquidity in the system and on the sidelines – the key is putting it back to work.
• Wine Symposium Survey in September reported increased optimism from wine executives about sales growth and profitability increasing.
• Dr. Christopher Thornberg of Beacon Economics told the Sonoma County Economic Development Board that he sees little risk of a double dip recession and that things are moving in the right direction, but we are in a long, slow recovery.
• On Oct. 18, Apple announced fourth-quarter income up 70 percent, and IBM reported increased income and raised guidance for full year 2010.•Local manufacturers and technology companies are showing an upward trend in orders.