Innovation and research and development (R&D) play a critical role in the manufacturing industry and are essential to the success of companies that want to stay competitive and meet the ever-evolving needs of their customers. Unfortunately, recent tax changes are making it more difficult for small manufacturers to invest in R&D. Companies such as Marlin Steel will be feeling the effects of these changes.
How the New Tax Code Will Impact Marlin Steel
Marlin Steel has been at the forefront of innovation in the manufacturing industry for decades. Specializing in producing custom wire and sheet metal products for a variety of industries, including aerospace, medical, pharmaceuticals, and more, Marlin Steel's success is due in large part to its commitment to R&D. We have invested heavily in new technologies and processes that have enabled us to produce high-quality products quickly and efficiently.
However, recent changes to the R&D tax policy are making it more difficult for Marlin Steel to continue its R&D efforts. Under the new rules, businesses are now required to spread their R&D deductions over several years, whereas before, they could deduct all of their R&D expenses in the same year those expenses occurred. This change means that smaller companies, like Marlin Steel, will have a much harder time making investments in innovation.
The changes in the R&D tax policy are a blow to Marlin Steel's R&D efforts. This could have long-term implications for the company's ability to compete in the marketplace. In a recent interview with Nam, the president and owner of Marlin Steel, Drew Greenblatt, discusses how this tax change may threaten the company’s progress. Not only will the new tax code increase taxes, making it more difficult to invest in new talent and equipment, but it will also hinder small businesses’ ability to foster innovation and remain competitive during economic hardships.
The Takeaway
The situation at Marlin Steel highlights the need for policymakers to consider the impact of tax changes on small manufacturers. R&D is critical to the success of companies in the manufacturing industry, and small businesses should not be penalized for their size. By making it more expensive for smaller businesses to invest in R&D efforts, these tax changes could stifle innovation and limit the ability of small manufacturers to compete.
How to Move Forward
Innovation and R&D are crucial components of Marlin Steel’s success. As a manufacturer of 100% USA-made, American steel wire baskets, racks, trays, and other wire components, Marlin Steel strives to deliver top-quality products with fast delivery. We have a wide range of in-stock products and can also custom-manufacture a solution to fit your particular requirements.
To ensure we can continue innovating our products, policymakers need to be made aware of how the R&D tax policy changes are affecting small manufacturers. By making sure that the tax code encourages competitiveness and innovation, smaller businesses like Marlin Steel can continue their R&D efforts and drive growth and success in the manufacturing industry.
For more information about our dedication to R&D and innovation, or to learn more about our products and capabilities, contact Marlin Steel today. Also watch how we have grown Marlin Steel over the last several years and how we have enabled our employees to be the best they can be:
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