Why the Time for Section 179 is Now

As we enter the fourth quarter of 2020, shops can once again take advantage of Section 179 bonus depreciation when purchasing capital equipment, and machine tools do qualify. All of the typical benefits remain in place this year, including many ways to achieve significant cost savings. In light of the events of this year, I think there are currently even more advantages to taking action on Section 179 – and the sooner the better. Here’s why.

Pivot Faster Than Your Competitors

As a result of this year’s pandemic we’ve seen many shops take the opportunity to pivot – to adapt or diversify the products they’re making and the markets they serve. Speed is of the essence here as the best advantages can be gained by getting to market ahead of your competitors. As our customers move into new territories, we’ve been able to support them, because while these markets may be new to them, we have many years of experience with most types of parts and can lend a hand. Taking advantage of Section 179 can be a great opportunity to equip yourself and make sure you have the technology you need to ensure a great future for your company.

OPPORTUNITY TO MAKE YOUR MOVE INTO AUTOMATION

If you’ve been on the fence about automation for your shop, now might be the perfect time to get involved. All of the latest Okuma machine tools are very user-friendly when it comes to providing access for robots, machine-to-machine connectivity, and other aspects of automation. Some Okuma machines, such as ARMROID and STANDROID, even provide automation within the machine tool itself. These are all Section 179 deductible, making this the best time to get into automation.

WE’RE ON COVID TIME

Over the past several months we’re come a long way in building skills around virtual customer interactions, so the communications aspect of the sales process can be taken care of in the same time frame as usual. However, depending on what state you’re located in, and the current state of the virus, there may be a couple of extra hurdles to jump that may add a bit of time to your transaction. For example, both Okuma America and your distributor need to make sure we have the customer’s COVID policies in-hand, and we need to determine if there have been any cases in the past 14 days, which also requires extra investigation for the safety of all. We’ve found these to be simple and straightforward procedures, but make sure you give yourself time to take care of these extra details.

ENSURE YOU HAVE TIME TO TACKLE THE UNKNOWNS

Perhaps more than ever, planning is crucial to ensure your machine tools are delivered and in service by December 31, 2020. With all the chaos we’ve endured this year, it can be easy to lose sight of the fact that you may need to make sure your facility is properly prepared. For example, there are many variables that must be considered to provide a suitable foundation for certain machine tools in your shop. There are also process considerations such as layers of approvals within organizations, and scheduling/availability of service personnel, that can chip away at your timetable. Who needs extra stress this year? Start early and ensure you have time for a manageable process.

SPECIAL DEALS AND INCENTIVES

We’ve created some special incentive programs for you to consider this year; you can get all the details by contacting your Okuma distributor. They can also show you the wide variety of machine models you can choose from, available for immediate delivery. I recommend contacting your distributor soon to start reviewing your options so you can maximize your benefits from this program.

About Summer Cline
Summer Cline is Vice President of Finance, Okuma America Corporation.
Connect with Summer on LinkedIn.