Industrial Trucks and their Impact on the US Economy

Industrial trucks and forklift sales are directly tied to our economy. When our economy does well, more forklifts are required to move the goods ordered by customers and end-users. Conversely, when a downturn occurs, forklift sales drop, sometimes dramatically as they did with the recession of 2009. What few people understood until now, the economic impact these forklifts make on our economy. Recently the Industrial Truck Association in conjunction with Oxford Economics researched the topic, and below are some of the significant findings.

  • Industrial truck manufactures generate 209,600 jobs in the US, directly and indirectly.
  • The economic impact of forklift on the US economy is $25.7 billion dollars. Here in Ohio forklifts generate over $2.4 billion dollars to our state economy.
  • Over $15 billion of that contribution is a result jobs that support forklift sales and service such as service technicians, the parts that are made and sold and installed on forklifts, training centers etc…
  • The Bureau of Labor and Statistic (BLS) estimates that there are about 540,000 industrial truck operators in the US.
  • There are over 200,000 forklifts sold annually in the US.
  • Over 1 million forklifts are sold around the world each year.
  • The industrial truck industry generate about $5.3 billion dollars in state and local taxes. Here in Ohio, state and local taxes are over $179 million dollars.

As you can see, when we sell a forklift we create a lot of work not only here at Valley, but for our customers, their customers and the impact is felt all throughout our state and national economy.

Report – Industrial Trucks Effect on State and National Economics

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Section 179 Tax Incentives Renewed for 2017

section-179-header

Jan 1, 2017 –   Section 179 is still affected by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) that was signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000, where it will remain for all of 2017. For those interested, you may read the summary from the Ways and Means committee here.

Section 179 Deduction: Until further notice, Section 179 will be permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.

50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

IMPORTANT THIS YEAR: Section 179 for Current 2017 Tax Year
Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight December 31, 2017. Use this 2017 Section 179 Calculator to see how much the Section 179 tax deduction can save your company.

 

2016 Section 179 Tax Information (Last Year)

The PATH ACT passed in December of 2015 affected 2016 and beyond, making the Section 179 deduction for 2016 $500,000. In addition, the 50% Bonus Depreciation was reinstated.
Click Here for the fully updated Section 179 Calculator for tax year 2016 (Last Year).

Answers to the Three Most Common Section 179 Questions

How Much Can I Save on My Taxes in 2017?
It depends on the amount of qualifying equipment and software that you purchase and put into use. See the handy Section 179 Calculator that’s fully updated for 2017, and includes any/all increases from any future legislation.

What Sort of Equipment Qualifies in 2017?
Most tangible business equipment qualifies. Click here for qualifying property.

When Do I Have to Do This By?
Section 179 for 2017 expires midnight, 12/31/2017. If you wish to deduct the full price of your equipment from your 2017 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.

Many businesses are finding Section 179 Qualified Financing to be an attractive option in 2017, especially since the expected Federal Discount Rate increases don’t leave much time for action. Please apply today.

 

More Section 179 Deduction Questions Answered

Welcome to Section179.Org, your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding Section 179, and clearly and honestly discuss the various aspects of IRS §179 in plain language. This will allow you to make the best possible financial decisions for your company.

Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have a lot of questions regarding Section 179 such as:

We’ll answer all of these questions, and make certain that you come away with all of the knowledge you need to make smart business decisions in this 2017 tax year regarding equipment and/or software purchasing and Section 179.

Why? Because if you’ve been thinking about buying or leasing new equipment and/or software, it’s definitely to your advantage to use this excellent tax break.

Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment. In short, taking advantage of the Section 179 Deduction will help your business keep more capital, while also getting needed equipment, vehicles, and software.

Free Tools that Make Calculating Section 179 Deductions Simple

Section 179 is really very simple. You buy, finance or lease qualifying equipment and/or software, and then take a full tax deduction on it this year (also, there are a few other things, which we’ll go over, but in a nutshell, that’s the idea). To give you an estimate of how much money you can save, here’s a Section 179 Deduction Calculator to make computing Section 179 deductions simple.

If you use the calculator, take note of the savings on your tax obligation. Many people find that, if they lease or finance their Section 179 qualified equipment, the tax savings actually exceed the first year’s payments on the equipment (making buying equipment profitable for the current tax year). This is perfectly legal, and a good example of the incentive that Section 179 provides small and medium businesses.

Visit our website to learn more about our line-up of new material handling equipment, including:

Valley Industrial Trucks is your source for quality material handling equipment, service, parts and rentals. Visit our website to learn more. Then contact us for a quote at 888-375-0829.


Celebrating Forklift Safety Day 2016

Forklift Safety Day Logo - mdThe Industrial Truck Association has announced it’s second annual Forklift Safety Day, to be held Tuesday, June 14.

While most of you won’t be able to attend, there are things you can do to take advantage of this day to help create awareness about the dangers that forklifts present and how to minimize the potential for accidents that can result in injury or death, damage to your facility, equipment and financial losses.

We’ve compiled a short list of things you can do on June 14th to improve safety on and around your forklifts.

  1. Make sure all your forklift operators have been trained and that their refresher training is up to date, if applicable or necessary.
  2. Download our “Forklift Operator Questionnaire” to help you vet new operators about their actual experience and history with forklifts.
  3. Take time to teach your forklift operators the importance of daily inspections of their forklifts. Daily inspections reduce the risk of equipment failure and catch small problems before they blossom into giant ones. You can find daily forklift inspection sheets on our Training Page for both IC and electric units.
  4. Download and post our free forklift safety posters that you can find on our Training Page.
  5. Take some time to gather any staff that operates around forklifts, but not on them, to refresh them about the dangers of this equipment and how to be sure to use safe procedures when they are in an area of your facility where forklifts are being operated.
  6. Make sure all your forklift’s maintenance is up to date. If you have a Planned Maintenance Agreement, this would be a good time to review it with your service provider to ensure all standard checkpoints as well as unique equipment attachments are being inspected and maintained properly.
  7. Review any unique “site specific” features your facility may have and be sure your operators are aware of proper handling of equipment while on or around these features (ramps, areas where floors can be slick, floor substrates that vary etc…)
  8. Make sure that training is part of your company’s orientation for anyone that will or MIGHT operate a forklift. Remember, employees that have not been properly trained aren’t even allowed to sit on and start a forklift, much less move it out of the way of anything.
  9. Make sure you forklifts have proper safety equipment and that it’s operating properly. Lights, horns, back-up alarms, seat belts, fire extinguishers etc… Check out our Blue Safety Light for pedestrian safety enhancement.
  10. Make sure you have lock-out kits to ensure that forklifts that do not pass an inspection are locked out immediately until repairs are made.
  11. Review all your forklifts for possible replacement. Old forklifts, or those that are getting “up there” in hours, might be potential threats. Review safety records and maintenance logs for your equipment. You might find this could be a good time to replace some or even all of your forklifts.-

Our goal is to help you operate safe, efficient and productive forklift equipment. To discuss forklift safety, operator training –or to get a quote on new equipment, please Contact Us or give us a call at 888-375-0829..


Section 179 is Back for 2016 and Better!

Sec179Congress has approved much needed improvements in Section 179 which allows companies, like yours, the ability to completely deduct the purchase cost of equipment the first year it is put into service. The new limits are:

Maximum 179 Deduction for 2016: $500,000

This means for qualifying equipment purchases of up to $500,000, your company can deduct 100% of the purchase price from its taxes the very first year it is put into service.

Further, this maximum will be increased annually, with the maximum tied to inflation, at $10,000 increments.

Bonus Depreciation; Maximum Qualifying Purchases: $2,000,000

Once you exceed the maximum deduction of $500,000, bonus depreciation kicks in at 50%, until you reach the maximum qualifying purchases of $2,000,000. For example, if you spend $1,000, ooo on new equipment, you can fully deduct the first $500,000, then deduct 50% of the remaining $500,000 for a total tax deduction the first year of $750,000.  It then begins to phase out dollar for dollar until you reach $2,500,000, where it is then completely eliminated.

Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

Note: The section 179 deduction applies to NEW and USED equipment whereas the bonus depreciation is only available for NEW equipment.

What that means to the purchase price of a NEW, $30,000 forklift? Assuming your company is in the 35% tax bracket, your effective cost, after deducting the entire $30,000 from your taxes, is only $19,500!

With Section 179 in effect for the remainder of 2015 and all of 2016, and beyond, there’s never been a better time to invest in new forklifts for your facility.

Note: We always suggest you consult your accountant or tax professional before you utilize section 179 for tax savings. Not all companies are structured the same and your savings may vary.

To learn more about Section 179, please visit; www.section179.org. Visit our New CLARK Forklifts showroom, our New Doosan Forklifts showroom , New Sellick Forklifts showroom and our Used Inventory to see our models. Then Contact Us for a quote, or give us a call at 888-375-0829.


To Do a BIG Job, You Need a BIG Forklift

When one of our great customers, Mercer Forge needed a BIG, reliable forklift to handle the 10 ton plus steel pipes and bars; then turned to us for a piece of equipment that would do the job, reliably and within their budget. We recommended the Doosan D140S-7. The Doosan D140S-7 heavy-duty forklift is powered by Doosan’s 5.9 liter diesel engine featuring intercooled turbocharging that generates over 158hp.

Doosan Forklift

The cab and seat are heated to provide comfort when working outdoors during our region’s coldest winter months. It also features a stereo with bluetooth connectivity. To retrieve and deposit these big loads, it has 96″ forks, 144″ two-stage mast and sideshifting fork positioners.

When it comes to forklifts that will handle the largest loads, all day, every day, you can count on Doosan and Valley Industrial Trucks to get you the right forklift for the job you need done, and keep it operating at maximum productivity with our planned maintenance programs.

Check out our Doosan Forklift Showroom. When the time comes for a durable and reliable forklift and forklift service company, Contact Us, or give your local Valley Industrial Trucks branch a call. We serve northeastern Ohio and Western Pennsylvania from our convenient Youngstown and Akron facilities.


Getting Ready for Forklift Safety Day

Forklift Safety Day

The Industrial Truck Association has announced it’s second annual Forklift Safety Day, to be held June Tuesday, June 9. You can register to attend the event, held in Washington, DC. While most of you won’t be able to attend, there are things you can do to take advantage of this day to help create awareness about the dangers that forklifts present and how to minimize the potential for accidents that can result in injury or death, damage to your facility, equipment and financial losses. We’ve compiled a short list of things you can do on June 9th to improve safety on and around your forklifts.

  1. Make sure all your forklift operators have been trained and that their refresher training is up to date, if applicable or necessary.
  2. Take time to teach your forklift operators the importance of daily inspections of their forklifts. Daily inspections reduce the risk of equipment failure and catch small problems before they blossom into giant ones. You can find daily forklift inspection sheets on our Training Page for both IC and electric units.
  3. Download and post our free forklift safety posters that you can find on our Training Page.
  4. Take some time to gather any staff that operates around forklifts, but not on them, to refresh them about the dangers of this equipment and how to be sure to use safe procedures when they are in an area of your facility where forklifts are being operated.
  5. Make sure all your forklift’s maintenance is up to date. If you have a Planned Maintenance Agreement, this would be a good time to review it with your service provider to ensure all standard checkpoints as well as unique equipment attachments are being inspected and maintained properly.
  6. Review any unique “site specific” features your facility may have and be sure your operators are aware of proper handling of equipment while on or around these features (ramps, areas where floors can be slick, floor substrates that vary etc…)
  7. Make sure that training is part of your company’s orientation for anyone that will or MIGHT operate a forklift. Remember, employees that have not been properly trained aren’t even allowed to sit on and start a forklift, much less move it out of the way of anything.
  8. Make sure you forklifts have proper safety equipment and that it’s operating properly. Lights, horns, back-up alarms, seat belts, fire extinguishers etc… Check out our Blue Safety Light for pedestrian safety enhancement.
  9. Make sure you have lock-out kits to ensure that forklifts that do not pass an inspection are locked out immediately until repairs are made.
  10. Review all your forklifts for possible replacement. Old forklifts, or those that are getting “up there” in hours, might be potential threats. Review safety records and maintenance logs for your equipment. You might find this could be a good time to replace some or even all of your forklifts.-

Our goal is to help you operate safe, efficient and productive forklift equipment. To discuss forklift safety, operator training or to get a quote on new equipment, please Contact Us or give us a call at 888-375-0829..


OSHA Announces 2014 Most Cited Standards

Patrick Kapust, deputy director of OSHA’s Directorate of Enforcement Programs, and Kyle W. Morrison, S+H’s senior associate editor, announced OSHA’s Top 10 list in front of a crowd gathered on the Expo Floor.

For the fourth year in a row, OSHA’s Fall Protection Standard (1926.501) is the agency’s most frequently cited violation.

The entire list is as follows:

  1. Fall Protection in Construction (1926.501)
  2. Hazard Communication (1910.1200)
  3. Scaffolding in Construction (1926.451)
  4. Respiratory Protection (1910.134)
  5. Lockout/Tagout (1910.147)
  6. Powered Industrial Trucks (1910.178)
  7. Electrical – Wiring Methods (1910.305)
  8. Ladders in Construction (1926.1053)
  9. Machine Guarding (1910.212)
  10. Electrical – General Requirements (1910.303)

The data is preliminary. S+H will publish the finalized data.