______________________________________________________________________________________________________________ Policy
costs and make the return on automation easier to justify. Depending on the project, available incentives and the manufacturer’ s tax position, these benefits can reduce the aftertax cost of a robotics installation by 30 percent to 40 percent.
Yet many manufacturers still assume R & D tax credits apply only to laboratories and science facilities. In manufacturing, research often occurs on the production floor. Automation-related work may qualify when it involves technical uncertainty and experimentation, including process redesign, custom fixtures, programming and integration with existing equipment.
Purchasing equipment does not itself generate qualified research expenses. However, eligible engineering, testing and process-development work surrounding implementation may qualify.
Automation also changes the workforce equation. The idea that robotics will simply erase manufacturing jobs misses the larger threat. New technology changes how people work and creates demand for different skills. Modern factories already need workers who can operate, program and maintain sophisticated equipment.
The greater employment threat is failing to modernize. A manufacturer that cannot match the productivity, pricing or delivery times of overseas competitors will eventually lose business. When contracts move abroad, the jobs supporting them often follow. Automation can preserve domestic production and the jobs that depend on it.
America’ s ability to lead in AI, power infrastructure and defense production will depend on whether its smaller manufacturers can adapt. The tools to lower costs and improve investment returns already exist, but too few companies understand how to use them. Manufacturers need a clearer path from evaluating automation to putting it to work. Those that act now can strengthen their operations, create better jobs, and compete for the next generation of American industrial investment. ■
Rick Lazio & Myron Moser alliantglobal. com
Rick Lazio, Senior Vice President of alliant, is a former U. S. Representative from New York, serving in Congress from 1993 to 2001. Myron Moser, Strategic Advisory Board Member at alliant, is Chairman Emeritus of Hartfiel Automation in Minnesota which he joined in 1990. alliant is a leading consulting and technology firm, headquartered in Houston, Texas. For over 25 years, it has helped leaders navigate the people, process, and technology challenges of modern business. Its Consulting, AI, Managed Services, and Technology practices keep US businesses competitive in a disruptive market.
manufacturing-today. com 27