St. Louis, MO. . .Diagraph, a leading manufacturer and distributor of marking, coding, labeling and RFID systems, is educating our customers and prospects on why NOW is a great time to buy.
Most companies are watching Wall Street and looking at internal improvements, cost reductions, ROI, etc. and Diagraph believes that we can help them achieve their goals. For capital expenditure projects that have been slated for 2008, but have been considered being postponed due to economic conditions or threats, news from the White House provides good reason why it may make more sense to make those purchases NOW, rather than later.
On Feb. 13, 2008 - President Bush signed H.R. 5140, the Economic Stimulus Act of 2008*. In addition to providing stimulus payments to individuals, it provides tax benefit incentives to businesses. These incentives include two provisions: an increase in the small business expensing limitation for tax years beginning in 2008 and/or a special 50-percent depreciation allowance for 2008 purchases.
Provision #1: Section 179 Expensing*
In general, a qualifying taxpayer can elect to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property, after the relevant section in the Internal Revenue Code.
Under the new law, a qualifying business can expense up to $250,000 of section 179 property purchased by the taxpayer in a tax year beginning in 2008, up from $128,000 previously. (The $250,000 amount provided under the new law is reduced if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $800,000).
AND/OR, provision #2
Provision #2: 50-Percent Special Depreciation Allowance*
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over several years. It is an annual allowance for the wear and tear, deterioration or obsolescence of the property.
Under the new law, a taxpayer is entitled to depreciate 50-percent of the adjusted basis of certain qualified property during the year that the property is placed in service. This is similar to the special depreciation allowance that was previously available for certain property placed in service generally before Jan. 1, 2005, often referred to as “bonus depreciation.” To qualify for the 50 percent special depreciation allowance under the new law, the property must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009. To reflect the new 50-percent special depreciation allowance, the IRS is developing a new version of the depreciation and amortization form for fiscal year filers. The new form will be designated as the 2007 Form 4562-FY.
Provision #2 Example** Let’s take a look at an example of how a company purchasing capital equipment may benefit from this Economic Stimulus Package.
The example illustrates the difference prior to the Stimulus Package, and with the Stimulus Package now in place. Here’s the criteria we’ll use: ABC Company purchases $24,000 of equipment that qualifies as eligible property, they are in a 30% tax bracket, and they do a straight-line depreciation over 5 years:
Prior to Economic Stimulus Package For a $24,000 piece of equipment, ABC Company would depreciate $4,800 in years #1 through 5, and their tax savings on the depreciation would be $1,440 ($4,800 x 30% tax bracket) in years #1 through #5.
With Economic Stimulus Package For a $24,000 piece of equipment, ABC Company would depreciate $12,000 in year #1 (50% special depreciation allowance), and $3,000 in years #2 through 5. The depreciation of $12,000 in year #1 brings a tax savings of $3,600 ($12,000 x 30% tax bracket) and $900 ($3,000 x 30% tax bracket) in years #2 through 5.
Summary With or without the Economic Stimulus Package, ABC Company’s tax savings over 5 years remains the same (in this example it would be $7,200). The key difference is that companies save more tax dollars immediately, (in year #1), instead of it being evenly recovered over 5 years. In our example, ABC Company saves an additional $2,160 ($3,600 minus $1,440) in year #1. And the more money that businesses can put in their pocket today to invest in additional capital purchases or create new jobs is the key benefit of this Economic Stimulus Package.
NOW Is The Time… This growth package will protect the health of our economy by putting money back into the hands of American workers and businesses. The agreement offers incentives to spur business investment, by saving businesses approximately $50 billion in near-term taxes through this temporary change to the tax code.
Diagraph believes that if our customers and prospects have a capital expenditure project planned for 2008 and considered postponing it; this news should make them reconsider. It may be smart to do it NOW rather than later, not only for the tax savings incentive, but especially if…
Food & Beverage manufacturers are in one of the most stable, mature markets in industry. The growth is under 5% and the making, packaging, packing and shipping of the food and beverage we consume everyday is not that much different month to month. Some tweaks may occur, but these manufacturers have their processes down to a science. So really, the art is in helping them with their systems that they rely on to meet the demands of the supply chain. Diagraph is focused on providing solutions that will provide cost benefits, improve throughput and add value. And that coupled with the news of the tax savings, should help manufacturers realize that NOW is a great time to buy.
For more information on marking, coding, labeling and RFID systems, call Diagraph at 800-722-1125, send e-mails to email@example.com, or visit us on the web at www.diagraph.com.
Diagraph, a division of Illinois Tool Works Inc., has been in the product identification industry for over 100 years and manufactures and distributes automated industrial coding and labeling systems and supplies. Primary product lines include: small character ink jet systems, large character ink jet systems, automated labeling systems, and Radio Frequency Identification (RFID) Systems.
# # #
*For specific information regarding the Economic Stimulus Act of 2008 and more information on the tax savings benefits, please visit the Internal Revenue Service website at www.irs.gov and always consult your company’s Controller and/or your tax professional.
**This example is for illustration purpsoses only. For exact tax savings for your capital equipment purchases, please consult your company’s Controller and/or tax professional.
System uptime is the average length of time a piece of equipment runs between interventions are required to keep it operating smoothly. When comparing system uptime when assessing coding equipment, it is important to look at several factors including:
To understand system uptime better, let’s take a closer look at each of these key areas:
Consumable replenishment is the most common and necessary interaction with any given piece of coding equipment. The amount of time a system can go between consumable replenishment, like adding more ink to an inkjet coder, replacing ribbon stock in a thermal transfer printer, or replacing labeling stock on a labeler largely depends on the capacity of the individual piece of coding equipment. There are additional factors to consider when assessing consumable replenishment.
For inkjet coders, it is important to understand how long a printer can run after the bottle or cartridge of ink has run out of fluids. Does the system provide an advanced notice warning giving a countdown to when the coder will be truly empty? Does it provide enough of a warning that allows for fluids to be replenished at ideal production times like before and after shift changes? Can the fluids be replaced while the system is actively coding?
For thermal transfer printers, ribbon capacity as well as total ribbon usage are important to maximizing the length of time between replacing ribbon stock. For ribbon capacity, look at the maximum size of the ribbon roll for your chosen ribbon type. To maximize ribbon usage, look for thermal transfer printers that offer ribbon saving features that utilize as much surface area of the ribbon before advancing it for ribbon waste collection.
Although replenish consumables is unavoidable for the most common types of coding equipment, the very act of replacing or replenishing a bottle of ink or solvent, a roll of ribbon, or a roll of label stock can be made easier and less time consuming for system operators.
Inkjet coders tend to be the easiest type of coding equipment when it comes to consumable replenishment since most inkjet coders can keep running while being refilled. Look for inkjet coders that offer mess free, mistake free refill options like needle and septum systems that prevent leakage and dripping when swapping fluid bottles. This is ideal compared to inkjet coders that require fluid bottles to be manually poured into the system. Another factor to consider is how many touches or actions are required to complete the fluid refill process. Look for systems that provide one-touch fluid refill options as well as variations in shapes and sizes between ink and solvent bottles to simplify the process as much as possible while preventing the wrong fluids from going in the wrong compartments.
Due to the nature of thermal transfer printing, the printer will become temporarily unavailable for coding while ribbon stock needs to be replaced. Look for thermal transfer printers that have an easy-to-web design as well as easy to remove and replace ribbon cassettes. Investing in an additional ribbon cassette that can be loaded and ready to go when ribbon is low minimizes downtime on thermal transfer printers as much as possible.
Like thermal transfer printers, automated labelers also become temporarily available for use when label stock needs to be replaced. Look for an automated labeling system that has an easy label webbing design to make it easy to unload spent stock and load a fresh roll. Manufacturers with high production commands benefit from having alternate labeling machines available. When one machine signals that its label stock is low, the other starts applying labels so that the low system can be replaced. This virtually eliminates downtime with automated labelers.
Although consumable replenishment is required more frequently than maintenance, preventive maintenance procedures take more time to complete and often require the coding equipment to be completely unavailable for printing while being serviced. Not all coding systems are created equal. Service intervals are usually stated in the amount of system hours that can pass before preventive maintenance is required. Things like ink type, manufacturing environment, and overall wear and tear caused by the application can impact recommended system intervals.
For inkjet coders, look for systems that can run as long as a year or more before maintenance is required. Better yet, look for systems that provide advanced warnings about upcoming maintenance so that you can schedule interventions around your production schedule. Another factor to consider is how easy or complicated it is to perform maintenance. Look for systems that have self-contained service modules that can be easily swapped out without the need for a service engineer. Systems that have screen-guided instructions for service interventions tend to be the easiest to use.
For thermal transfer printers, take a look at preventive maintenance requirements that are recommended by the manufacturer. How many parts require replacement? How long does the manufacturer state it will take to perform maintenance? How easy is it to access parts that need to be replaced? These are all important questions to ask when evaluating thermal transfer printers.
When it comes to automated labeling systems, all-electric systems allow you to replace wear parts while relying on pre-programmed settings to get the labeler operating as quickly as possible. Pneumatically operated labeling systems require extensive adjustments after replacing wear parts, making maintenance interventions anything but fast. Also look for labeling systems that offer screen-guided instructions for quick and simple service interventions. Another advantage of all-electric labeling systems over pneumatic is that electric options allow for a gentler application of the label to the substrate. This cuts down on overall wear and tear, allowing the system to go for longer between maintenance intervals.
If you have any questions about how to calculate the uptime of your current coding equipment compared to new coding equipment technology, we are here to help. Contact a Diagraph product identification expert today by calling 1.800.722.1125 or contacting us through our website.
Learn more about the all new Linx 8900.
As a key component in our Diagraph Solution Center model, the Diagraph Uptime Advantage focuses on delivering more uptime through our products with minimal intervention requirements. We believe that our coding and labeling solutions should be the least of your worries. This is why our equipment solutions are built to withstand the toughest of manufacturing environments and consistently produce high quality marks – print after print after print.
Our product solution portfolio is built around the principles of reliability and ease of use:
Whether you need entry-level thermal inkjet, high speed continuous inkjet, or high resolution, large format printing, we have a wide variety of inkjet coding solutions that are designed to be low maintenance, user friendly, and offer superior longevity.
Because the most common cause of issues with pressure sensitive automated labeling technology is linked back to pneumatic plant air, we have fully embraced an all-electric automated labeling platform that is designed with servo-controlled label dispensing technology and smart sensing controls to achieve precise label placement at high speeds. You get all of the performance without any of the hassle.
Diagraph’s thermal transfer printing solutions offer not only the highest resolution mark on web- and foil-based product packaging, but also the widest print area range, offering ideal solutions for printing simple product codes all the way to complex messages like ingredient panels and ingredient lists.
Using CO2 and fiber lasers, we can offer an eco-friendly and consumable free option to create permanent traceability codes on packaged goods. Laser coding is an excellent low maintenance option for manufacturers that are implementing anti-counterfeit measures or need a discrete code.
At Diagraph, we will help you formulate the ideal coding and labeling solution for your unique manufacturing environment, code durability requirements, and staff capabilities. This is just one of the many ways we partner with customers to deliver tangible value throughout a long-term relationship. How much time and money can you save by taking a new approach to your coding and labeling operations? Let’s find out together.
Learn more about the other three components of the Diagraph Solution Center:
Diagraph is now offering a newly formulated non-porous ink in an improved 45Si cartridge that will offer Thermal Jet Series technology users greater print quality on some of the most challenging non-porous substrates. Some of the enhancements that make the TJNPMX cartridge the go-to choice for tough non-porous applications include:
3x Darker Print
The new formulation found in the TJNPMX cartridge allows for print messages up to three times darker than the standard TJNPM non-porous ink offering. This allows for greater contrast and improved barcode scan-ability.
2x Greater Throw Distance
The improvements found in the 45Si cartridge allow for a print throw distance up to 3/8”, enabling manufacturers with low volume operations to consider the Thermal Jet Series technology solution as an alternative to traditional continuous inkjet (CIJ) solutions.
Extended Decap Times
The TJNPMX ink formulation combats a common issue found with HP Cartridge technology solutions – printheads that sit idle between prints tend to clog and need to be de-primed to get the print quality back to an acceptable standard. The new formulation allows for excellent decap times lasting up to several hours, assuring consistently high print quality over time.
Non-porous substrates that work well with the TJNPMX formulation include:
QR Code Print Sample:
Alphanumeric Print Sample:
Not completely satisfied with your non-porous print quality? Request a print sample today. Call 1.800.722.1125
Errors can create downtime and missed deadlines. In today's environment, extended downtime is not something a company can afford to have happen. It is vital to understand why errors are occurring and to keep those coding errors to an absolute minimum. If an error is made at the start of the process but not detected until the end, the cost of rework and rescheduling reduces profits.
Mistakes can and do happen. Below are some of the main reasons coding errors occur so frequently.
Of course, it is a good practice to audit coding errors and analyze their causes. This can pinpoint clear actions for improvements such as individual or group training requirements or identify which equipment needs updating or replacing if it has become unreliable.
Eliminating 100% of coding errors is not possible due to the human factor. However, with the wide choice of user interfaces on the market, it makes sense to incorporate as many beneficial features as possible which suit your requirements and workforce. This approach helps reduce operator errors and keeps your downtime to an absolute minimum.
Remember, no one piece of equipment is going to solve your coding errors. You will always need good staff training, teamwork and processes. However, a good user interface that guides employees through initial set up can ensure errors are kept to a minimum. This will go a long way to keeping costs low, reducing downtime and most importantly, keeping your customers happy.
Not having what you need for your coding and labeling equipment when you need it can put a halt to production. This is why we recommend taking a proactive approach to the supplies you need to keep your equipment up and running in tip-top condition. The result? Your coding and labeling operations run like a well-oiled machine, with the right amount of consumables at the ready based on your production and the right parts on hand leading up to preventive maintenance actions.
Through the Diagraph On-time Delivery component of our Diagraph Solution Center model, we match each customer with a dedicated account team that can help plan your order schedule for supplies around the following:
The Diagraph On-time Delivery program is just one of the ways we partner with customers to deliver tangible value throughout a long-term relationship. Free yourself from the hassle and complexity of coding and labeling supply management and also save money by opting-in to our annual services to receive a predictability discount.