As a part of the Economic Stimulus Act of 2008 that was signed into law
on February 13 by President Bush, two provisions provide
significant benefit to manufacturing companies.
The new law nearly doubles the amount of deductible Code Sec. 179
expensing for 2008 to $250,000, and increases the threshold for
reducing the deduction to $800,000. It applies to property purchased
and put into service in the tax year beginning in 2008. This would benefit small businesses that are purchasing equipment.
The Act also provides a temporary bonus depreciation aimed at encouraging
business investment. Property must be eligible for the modified
accelerated cost recovery system, with a depreciation of 20 years or
less, and must be purchased and placed in service during 2008. The new
law provides taxpayers a 50% first year bonus depreciation of the
adjusted basis of the property.
SAN JOSE, CA - Global Industry Analysts, Inc. has released a
report suggesting that the worldwide market for Surface Mount
Technology (SMT) equipment will see favorable growth over the
next few years. The report stated that key factors driving growth
include component miniaturization, technology advancements and
mandatory legislation.
The report cites an increased demand for efficient packaging that offers the cost-effective placement of electronic components
onto the ever-decreasing size of the printed circuit board.
Accordingly, the report claims that the market for SMT equipment is
poised to exceed $5.6 billion by the end of the year 2010, and that the
Asia-Pacific region offers the most opportunities for the global SMT
industry. It projects annual sales of SMT equipment in the area to grow
at a compounded annual rate of 13.3% over the years 2001 through 2010.
SMT equipment sales in the U.S. totaled an estimated $718 million in
2006, while sales in Latin America are projected to exceed $146 million
in 2009.
The report states that the primary drivers of SMT equipment sales will
be Agilent Technologies, FeinFocus USA, Glenbrook Technologies, Phoenix
X-Ray Systems and Services, Teradyne, and Universal Instruments, among
others.
TAIWAN - Notebook makers Quanta Computer, Compal, Wistron, Inventec and Pegatron Technology were
all affected by fewer working days in February due to the Lunar New
Year, and saw revenues in February drop 10% to 15% for the month.
Notebook makers also expect shipments in the second quarter to be
impacted by a battery plant fire in Korea’s LG Chem's facility, and
Quanta stated that Matsushita's battery plant, which also suffered
damage in a fire in September 2007, will not resume full production
until the end of June. While demand should start increasing in the next
few months, the battery shortage problem may continue for some time.
Compal also pointed out that in addition to the shortage of batteries, chassis supply is also a problem.
GERMANY –
The German Electronics manufacturing industry saw orders for electronic
goods rise by near 12% for the fourth quarter 2007, which led to a 4.3%
increase in revenues for the same period, according to the German Electric and Electronic Manufacturers' Association(ZVEI).
Manufacturers
have stated that revenue growth might have been higher, but was
impacted by the lesser number of working days in the fourth quarter (60
as opposed to 65).
The
Book-to-bill ratio reached 1.10, indicating a coming increase in sales. The number of employees increased slightly by 0.4%.
