Tuesday, August 28, 2018

Economic indicators look good, but is it time for mattress producers to react?

These are exciting times we live in!



The economic climate for US manufacturers in the summer of 2018 has been very lively. Let's summarize recent developments that are favorable for these producers:

  • unprecedented business confidence
  • strong GDP growth
  • record-breaking stock market performance
  • new tax incentives
  • manufacturer-favorable deregulations
  • strong efforts to balance import/export trade
  • a new post-NAFTA manufacturing trade agreement with Mexico
  • an uptick in retail sales
  • record low unemployment, coupled with rising consumer confidence

Of course many of these conditions impact some sectors far more than others, but, as a whole, it's becoming a very good manufacturing environment - and a very good selling market on the cusp of a boom! The key is finding out how to capitalize on factors you can benefit from the most.

So far, mattress industry sales have remained fairly sluggish as these economic changes have developed. This may be due in part because these economic changes have occurred so rapidly the consumer, and the mattress producer have not had time to react. If your business is still operating in the same fashion it did prior to today's business conditions, it may be TIME FOR YOU TO REACT.

When the mattress shopper catches up with the market, be ready to deliver. There is still time to upgrade your equipment for more productive highly-efficient equipment before the calendar year runs out. Thanks to recent manufacturer-favorable tax code changes, you can now deduct up to $1,000,000 worth of equipment with the Section 179 deduction. So you can basically get $1,000,000 worth of equipment for only $650,000 this year!*

Click on this Calculator to plug in your own numbers and see how you can benefit:

 Section 179 Calculator
(Courtesy of section179.org)

It's time for you to capitalize on these favorable business conditions, and prepare yourself for when the mattress shoppers catch up.


* This tax information, though based on a realistic scenario, may vary from your actual experiences. It is provided for illustrative purposes only. Consult a qualified tax professional for specific information before making purchase decisions.