Trump tax cuts, innovation fuel industrial expansion; future uncertain

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by Samuel Pordengerg Mar 18, 2023 News
Trump tax cuts, innovation fuel industrial expansion; future uncertain
streamline 3d

Kevin Tolman andCody Laruson are showing off a 3D-printed shoe. Next, the product is put into a tumbler to be polished The photo was taken by Frank Lopez.

published on March 17, 2023 - 11:41 AM

It was written by Frank Lopez.

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Manufacturing is more likely to be affected by unstable economic periods than any other sector.

Capital for expansion is more difficult for manufacturers because of the large investments in equipment, structures, research and development.

In the fourth quarter of the year, manufacturing labor productivity decreased as output decreased.

Between the fourth quarters of the year and the year after, manufacturing labor productivity grew by 0.8%.

Capital investment in equipment and intellectual property increased in the year after the Tax Cuts and Jobs Act was signed by President Trump.

The corporate tax rate was slashed by Trump.

Private equipment investment went up from $174 billion to $185 billion in a single year. The investment in private structures went down.

Because of California regulations, manufacturers have been investing in technologies to go green, such as solar power, more efficient heating, ventilating, and air conditioning systems, and the use of electric vehicles.

More manufacturers are investing in robotic and artificial intelligence to increase productivity, reduce lead times and spare workers from physically demanding labor

Local manufacturers have been busy with production and investment despite not having as many available workers.

streamline 3d products
Streamline 3D, which is the only industrial 3-D printer open to the public between Sacramento and Los Angeles, uses multi-jet fusion to make products that are extremely durable, exhibit finer surface finishes and finer feature resolutions. Photo by Frank Lopez

It's bending with time.

With a full engineering and design department, Total Concept is able to develop projects of any size.

The manufacturer transitioned its facility to run on solar and cover all electricity costs.

David McIlvaine, co-owner of Total Concept, said that the past year was a success despite the start of a new century.

McIlvaine said they were adjusting on the fly because they haven't seen a decline in demand.

The company is also investing in new business, having purchased two new machines to meet demands from customers.

In the past two years, Total Concept has invested a lot of money.

The company was spurred to use available funds under the new tax code.

When you have a break like that, you want to know how to invest in the company at that time. The growth was driven by that. McIlvaine said that buying a new machine is different now that we don't have the same advantages.

A change to the tax code that went into effect this year applies a new minimum 15% tax on annual income in a corporation's financial statement

McIlvaine said that the lack of a full sale and use tax exemption on manufacturing equipment deterred people from investing in new machines and equipment.

To meet the needs of potential new clients, the company needs to invest in new machinery and possibly additional floor space.

McIlvaine said that if there were more qualified workers, more manufacturers would invest in their workforce to help expand and then invest in new technology and machinery to continue to grow.

McIlvaine said that more manufacturers are investing in marketing teams and social media in order to stay current with modern times.

streamline 3d
Streamline 3D has two HP Jet Fusion 5200 Series (outer left and right), each with a price a price tag of about $500,000. They typically run day and night, printing various products for their clients. A tumbler (center) polishes the layers of nylon powder after a 3D printed object’s shape is completed. Photo by Frank Lopez

There is a third-dimension investment.

Kevin Tolman, co- founder of Streamline 3D, made a presentation during public comment to request permitting for expanding the company and moving into a larger facility in order to meet expected demand.

The parts produced by Streamline 3D are used in a variety of industries.

The facility where Streamline 3D operates is connected to Traffic Signal Hardware, which has been manufacturing frameworks for the traffic signal industry in North America since the 1960s.

Ron Tolman is the president of Traffic Signal Hardware and his son is the co-president.

Two years ago, Laursen and Tolman co- founded Streamline 3D.

When Laursen bought his first manufacturing machine, A Taig, in 2015, he used his free time to design and make bicycle parts. In 2016 Streamline 3D got its first 3-D printer.

He started advertising his services in the manufacturing lab after noticing that the university's 3D printers were always broken.

With the chance to get the best 3-D printing equipment in the world, Streamline bought an HP Jet Fusion 5200.

Two of the company's 3D printers are in use.

Tolman said that Streamline 3D is open to the public. streamline will manufacture the product with their printers for a fee if a customer takes a design or idea of what they would like.

Most people think of Material Extrusion 3-D printers, which extrude material through a heated nozzle that is deposited along a path determined by software, when they think of 3-D printers.

A bed of powder material is deposited and fused with detailing agents into a solid layer. The process of printing more powder on top of the bed continues until the product is complete.

The method allows for waterproof projects that can be used in industrial and commercial settings.

Their clients include some of the world's best known companies.

He predicts they will need to be in a 20,000 square-foot building within the next two years.

According to Tolman, Streamline 3D will triple its business in three years.

It would take another $2 million invested into the company and another $3 to $5 million for a new building with the size we need.

He said that the city gave some leads for facilities to rent.

Laursen said that there will be another HP Jet Fusion 5200 by the end of the year.

Laursen said this year is looking good. We are on track to do 50% better.

An expansion would allow them to fulfill orders quicker. Being able to offer overnight delivery is a big benefit in today's on demand society.

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