KROST Quarterly Magazine: The Manufacturing Issue - Volume 1, Issue 2

VOLUME 1, ISSUE 2

KROST QUARTERLY M A G A Z I N E

THE MANUFACTURING ISSUE Beyond the Assembly Line: Benefits of Tech Trends in Manufacturing

Southern California M&A in Manufacturing Report Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware

Keith Hamasaki

leads the Manufacturing Industry group at KROST

TRADE WARS: A WHOLE NEW WORLD IC-DISC Tax Savings on Export Goods or Services

WWW.KROSTCPAS.COM

KROSTCPAs.com Volume 1, Issue 2 / September 2018

Offices Pasadena Headquarters 790 E. Colorado Blvd. Suite 600 Pasadena, CA 91101 Woodland Hills Office 21800 Oxnard Blvd. Suite 1040 Woodland Hills, CA 91367 Valencia Office 26650 The Old Road, Suite 216 Valencia, CA 91381 Phone: (626) 449-4225 Fax: (626) 449-4471

Principals Gregory Kniss, CPA Managing Principal Luis (Lou) Guerrero, CPA, MBT Principal, Tax Practice Leader Jason C. Melillo, CPA Principal, Assurance & Advisory Practice Leader Jean Hagan Principal, Restaurant Operations Practice Leader

Marketing Department / Design / Photography / Curation / Editing Bethany Wolfe bethany.wolfe@krostcpas.com Anna Chen anna.chen@krostcpas.com

CONTENTS

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Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware

by Keith Hamasaki, CPA & Steve Chhuor, CPA

IC-DISC Tax Savings on Export Goods or Services

by Evelyn Fernandez, CPA, MST

This Often-Overlooked Federal Benefit Offers Unique Opportunity for Manufacturers Guest Contributor: Michael Maroney

Southern California M&A in Manufacturing Report - 1st Half, 2018

by Paren Knadjian

Trade Wars: A Whole New World

by Keith Hamasaki, CPA

Beyond the Assembly Line: Benefits of Tech Trends in Manufacturing

by Mara Garcia

Nick Bielski Diana Vu

Stock Photography Adobe Stock Used with permission Copyright Š 2018 by KROSTCPAs.com All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

THE MANUFACTURING ISSUE KROST Quarterly is a digital publication released by KROST CPAs & Consultants headquartered in Pasadena, California. Established in 1939, this full-service Certified Public Accounting and Consulting firm serves clients across a variety of industries. With a focus on recognizing opportunities and creating value, KROST equips clients with tools to make better business and financial decisions for the future.

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INTRODUCING KROST’S MANUFACTURING & DISTRIBUTION TEAM I’m Keith Hamasaki, Assurance & Advisory Senior Manager at KROST. As a trusted advisor with over a decade of experience, my focus is on providing audit and business advisory services to emerging and middle market companies in areas such as process improvement, internal controls, technical GAAP accounting implementation, and procedural review assessments. I oversee the day-to-day operations of the firm’s audit practice and lead the firm’s Manufacturing and Distribution team. As a thought leader on business and accounting issues, I’ve had the honor to speak at organizations and educational institutions such as CalCPA, California State University Northridge, Loyola Marymount University, Glendale Community College, and Pasadena City College.

MEET KEITH

SUBSCRIBE

Our team produces regular KROST Insights posted to our website monthly. This issue of KROST Quarterly will highlight some of the hot topics in manufacturing including cybersecurity, tax benefits and incentives, technological advances in manufacturing, and trends.

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Receive KROST news right to your inbox! To subscribe, click here.

KROST QUARTERLY VOL 1 ISSUE 2 - THE MANUFACTURING ISSUE

Greg Kniss, CPA Managing Principal

MANUFACTURING

& DISTRIBUTION

Team at KROST 360° Service Model Luis Guerrero, CPA, MBT Principal - Tax

Keith Hamasaki, CPA Senior Manager Assurance & Advisory

Evelyn Fernandez, CPA, MST Senior Manager - Tax

Mara Garcia Senior - Assurance & Advisory

• • • • • • • • • • • •

Assurance & Advisory Tax Planning & Consulting Mergers & Acquisitions Outsourced Accounting R&D Tax Credits Cost Segregation IC-DISC Cybersecurity Assessment or Compliance Internal Control Review & Procedural Reviews Technical Guidance Advisory & Implementation Management Information Systems Fixed Asset Depreciation Review

Experience You Can Trust Our Sector Expertise • • • • • •

Aerospace & Defense Automotive & Transportation Consumer Products Food & Beverage Industrial Parts Wholesale Distribution and more...

“The experienced, multi-disciplined teams at KROST can provide advisory and implementation services for very specific needs relating to manufacturing, as well as a holistic approach to tackling multiple challenges as a true partner in the development of your business.”

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Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware

by Keith Hamasaki, CPA, Senior Manager - Assurance & Advisory & Steve Chhuor, CPA, Manager - Assurance & Advisory

S

ince the Target data breach in 2013, and Equifax in 2017, there are more and more cybersecurity concerns brought into public view each year. Companies big and small continue to have data security breaches. Manufacturing companies are just as likely to be targeted as any other business in any other industry, and it’s now more important than ever to plan for and implement processes and procedures that will protect against cybersecurity threats.

Manufacturing: A Prime Target for Cyber Attacks According to a 2018 Data Breach Investigations Report by Verizon1, Manufacturing was listed as one of the top 10 industries targeted by cybersecurity threats. In addition, the report states that 86% of cyberattacks on manufacturers are targeted offenses. This means that while the average attack is opportunistic, breaches in the manufacturing industry are planned and well organized. “Almost half (47%) of breaches involved the theft of intellectual property to gain competitive advantage,� states the report.

From data collection to productivity tracking and more, digital tools are being utilized across the board to improve the bottom line, and have become an essential part of doing business in the modern era. The manufacturing industry in particular has seen incredible improvements in organization and efficiencies through the use of industrial control systems and other software programs designed to save time and money, however, these improvements may have come with an unforeseen cost. These digital tools, while helpful, create a vulnerability that can be exploited by competitors and other bad actors to the detriment of the business.

Owners and CFOs understand that there is a potential risk involved in this common practice, but it does not stop it from happening time and time again. While many other industries have seen a drastic paradigm shift away from old systems to a proactive approach, manufacturing is still behind the times and the numbers demonstrate it.

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“According to a 2018 Data Breach Investigations Report

by Verizon, Manufacturing was listed as one of the top 10 industries targeted by cyber security threats.”

The stakes are high. Earlier this year, GDP from manufacturing in the US was at an all-time high at 2000.40 USD Billion (Trading Economics)2.

The time to act is now.

The Impact of Increased Security Measures and Reporting Requirements Savvy businesses require third-party vendors to supply detailed reports that show that their internal controls are in place.

This is especially important regarding cybersecurity. As revealed with the NIST 800.171 requirement for companies that supply the Department of Defense, we may begin to see that the cost of business will go up for companies to combat this issue. The AICPA has gotten ahead of the game and is in the process of completing their System and Organization Control (SOC) for Vendor Supply Chains3. The purpose of the SOC is to provide a report of the vendor’s internal controls including the cybersecurity risk. While costs may rise due to increased security, the benefits cannot be denied. The legal implications are yet to be fully realized, as well as other ramifications that can be devastating to a company and the business they conduct.

What Can Be Done?

Managing cybersecurity and internal control risks can be a daunting task that takes skills and experience to ensure the proper procedures and processes are in place. To secure company data, manufacturing businesses should seek out expert guidance to ensure best practices are implemented to effectively mitigate risks. Here at KROST our dedicated team is ready to assist you. Contact us today, should you have any questions.

CONTACT KEITH & STEVE 

2018 Data Breach Investigations Report – Executive Summary, Verizon 2 GDP from Manufacturing, Trading Economics 3 System and Organization Controls: SOC Suite of Services, American Institute of CPAs 1

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IC-DISC Tax Savings on Export Goods or Services

by Evelyn Fernandez, CPA, MST, Senior Manager - Tax

I

nterest‐Charge Domestic International Sales Corporation (IC‐DISC) is quite a mouthful, which may be a reason why most people don’t know about this tax incentive. Thousands of businesses are not taking advantage of this tax savings opportunity mainly because they aren’t aware of its benefits. The IC-DISC was originally created by Congress to promote export sales by allowing companies to defer income, with interest charged in the deferred tax. Now, the IC-DISC provides significant and permanent tax savings for producers and distributors of US made products used abroad.

In simple terminology, an IC‐DISC is a separate legal entity from the operating entity.

This is how it works: • The operating company pays a deductible commission to the IC‐DISC. • IC‐DISC is not taxed on the commission income.

• IC‐DISC pays dividends to its shareholders taxed as qualified dividends.

What is the result?

A shareholder/partner pays at a 20% qualified dividend tax rate as opposed to a 29.6% tax rate (assuming highest tax rates and operating entity is a flow‐thru eligible for the 20% Qualified Business Income (QBI) deduction). The outcome in this scenario is that a $500,000 commission would result in a tax savings of $85,000.

Probably worth looking into.

Who qualifies?

• A company that exports products that it manufactures.

• A company that manufactures a product that is included in a good that is exported.

• A company that provides engineering or architectural services conducted in the US for foreign construction projects.

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Of course, with all complicated tax incentives comes a long list of rules.

• An entity separate from the operating entity must be created.

• Any kind of entity or individual can own an IC‐DISC. • For the greatest benefit, an individual or flow‐through entity (S corporation, partnership, LLC) should consider forming an IC‐DISC. The calculations have specific rules as well.

There are two traditional methods in determining the maximum allowable IC-DISC commission: 1. The first method is calculated on 4% of overall export gross receipts.

2. The second method is calculated on a maximum of 50% of net income from qualified exports.

Interested in learning more about IC‐DISC and seeing if you or your entity qualifies for this often‐missed tax savings opportunity? Here at KROST, we have a dedicated team of experts that are ready to assist you. Not only can we determine if IC‐DISC is right for you, we can also discover what other tax incentives may be available to you. Let’s get started today, contact us.

CONTACT EVELYN 

SHAREHOLDERS

Dividend Income 20% Capital Gain

OPERATING COMPANY

Commission Deduction 37%/29.6% Ordinary Income

IC-DISC

Net Effect: 17%/9.6% Rate Reduction

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EXPERIENCE YOU CAN TRUST

79

YEARS

of experience helping thousands of businesses and individuals reach their financial goals.

SERVICES • Outsourced Accounting • Corporate Consulting • Tax Compliance • Assurance & Advisory • Mergers & Aquisitions • Tax Planning & Consulting

THREE-TIME AWARD WINNER Inside Public Accounting

2018 BEST OF THE BEST FIRM 2018 #1 Fastest Growing Firm 2018 Top 200 Firm

Your Success is Our Bottom Line 8

FULL-SERVICE ACCOUNTING & CONSULTING

This Often-Overlooked Federal Benefit Offers Unique Opportunity for Manufacturers Guest Contributor: Michael Maroney, Senior Manager - R&D Tax Credit Services, KBKG

W too).

ith the R&D Tax Credit now permanent, businesses are taking full advantage of this valuable credit. As manufacturing continues to be a mainstay in the American economy, it’s crucial for owners and operators of these facilities to maximize the opportunity provided by the federal government (some states offer benefits

In the past, many businesses avoided this credit due to the uncertainty that it would be extended year after year. Regardless of its huge benefits, the credit’s impermanence made tax planning a unique challenge. With these concerns now a thing of the past, manufacturers should take another look back at prior tax years to capitalize on potentially missed credits, and plan for this credit in the future. Companies involved with new product development, improving existing products or initiating process improvements to their production lines are prime candidates for the R&D credit. Generally, development efforts that include the following activities are likely to qualify for the credit.

Examples of potentially qualified R&D Activities: Developing new, improved, or more reliable products / processes / formulas with the intent of: • • • • • • • •

Improving strength, durability, service life Cost saving Reducing transit damage Developing processes that would meet stringent regulatory requirements Developing new or improved quality assurance testing process Testing prototype samples Experimenting with new or improved filling and packaging techniques Process improvements, including: Filling and sealing of the product Packaging New die design / techniques Minimizing environmental impact – waste control and recycling Flexibility and agility due to increased product volume and diversity • Developing prototypes using computer-aided design and computer-aided manufacturing process • Determining tooling requirements and optimal placement of equipment

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Manufacturing Process There are several phases in the manufacturing process that may qualify for R&D Tax Credits.

The Potential Benefits of the R&D Credit There are several benefits to realizing the R&D tax credit. These benefits can include the following: • Up to 13.5 cents of R&D tax credit for every qualified dollar • Dollar-for-dollar reduction in your federal and state income tax liability • Increased in earnings-per-share • Reduction of your effective tax rate • Improved cash flow • Unused credits carried forward up to 20 years • Recent regulatory developments make claiming the R&D tax credit for companies much more feasible • Look back studies can recognize unclaimed credits for open tax years (generally 3 or 4 years)

Qualifying Phases:

Phase 1 – Concept Development Phase 2 – Applied Research Phase 3 – Design Development Phase 4 – Prototype Phase 5 – First Run & Testing

Non-Qualifying Phases: Phase 6 – Full Production Phase 7 – Life Cycle Management

Why Now and Not Before?

Monetization has never been easier. Qualified small businesses may now apply the R&D Tax Credit against Alternative Minimum Tax (“AMT”). Additionally, qualified startup companies may elect to use up to $250,000 of R&D credits against their payroll taxes. The R&D Tax Credit is an often overlooked and misunderstood tax benefit. Most tax preparers only associate R&D with technology, biotechnology and pharmaceutical activities. Treasury regulations have substantially broadened the range of taxpayers eligible for the credit. As a result, more companies can take advantage of these benefits.

For businesses large and small that conduct qualifying research, this credit should be considered. Manufacturers have a unique position and opportunity as many of the activities qualify in order to maximize the benefit.

About KBKG

Established in 1999 with offices across the US, KBKG provides turn-key tax solutions to CPAs and businesses. KBKG’s engineers and tax experts have performed thousands of tax projects resulting in hundreds of millions of dollars in benefits for clients nationwide. For an estimate of the benefits or for more information, visit kbkg.com/researchanddevelopment.

CONTACT MICHAEL  10

S U B S CR I B E TO KR OS T NEWS GAIN ACCESS TO THE LATEST TAX AND ACCOUNTING NEWS UPDATES THAT CAN HELP BOOST YOUR BOTTOM LINE. WE'LL KEEP YOU INFORMED OF CURRENT INDUSTRY NEWS AND WHAT YOU SHOULD PREPARE FOR AS WE LOOK TO THE FUTURE.

ROST

CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS SINCE 1939

Southern California M&A in

Manufacturing Report - 1st Half, 2018

by Paren Knadjian, M&A & Capital Markets Practice Leader

Overview & Trends

M

ergers & Acquisition (M&A) activity in manufacturing globally was robust in 2018 with just under 3,200 deals announced amounting to $400 billion in value. Of that total, about 1,546 involved US companies with $187 billion in transaction value.

Narrow that search to companies from Southern California and that figure comes to 156 deals with $5.6 billion in transaction value. That is 21 more deals and an 89% increase in value over the 2nd half of 2017 and 105% increase in value over the 1st half of 2017.

M&A Ac�vity in Manufacturing for Southern California by Quarter 6B

100

5B 4B

80

3B 2B

60

1B 0B

2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Capital Invested

Deal Count Source: Pitchbook Data, Inc

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Significant Transactions • The $405 million acquisition of Buena Park-based Wheel Pros, a manufacturer of aftermarket wheels and performance tires, by Santa Monica-based Clearlake Capital • The $235 million acquisition of Irvine-based FMH Aerospace, a manufacturer of aircraft systems and components by publicly traded AMETEK (NYSE: AME) • The $215 million acquisition of Santa Ana-based JWC Environmental, a provider of sewage treatment products, by Swiss-based Sulzer, which itself is majority owned by Renova Group, a Russian Private Equity group • The $118 million acquisition of Rancho Cucamonga-based Innovative DisplayWorks, a manufacturer of merchandise display units for beverage companies, by Oxford Financial Group (a family office) and other undisclosed investors Also worth mentioning, was the $214 million Series I capital raise by Hawthorne-based SpaceX in a deal led by Fidelity Investments, putting the company’s pre-money valuation at $25 billion. 7percent Ventures, The K Fund and StraightPath Venture Partners also participated in the round. The company has raised $2 billion in equity, grants and debt so far.

In addition, there was one significant IPO – Escondido-based One Stop Systems a manufacturer of industrial-grade computing systems and components for high-performance computing applications. The company raised $19 million on the NASDAQ stock exchange under the ticker symbol of OSS in February. A total of 3,800,000 shares were sold at a price of $5 per share. It is currently trading at just over $4 per share.

Outlook The elephant in the room is the potential for a global trade war triggered by imposition of certain tariffs by the US Government. The exact impact of that on the manufacturing sector, and the effect (if any) on M&A activity remains uncertain.

However, the local economy remains robust and continues to grow. The Greater Los Angeles area (which includes the counties of LA, Ventura, San Bernardino, Orange and Riverside) is a $700 billion economy and the largest manufacturing center, for its geographic size, in the US. The manufacturing industries employ 480,000 workers and are supported by the Ports of Los Angeles and Long Beach – the two largest seaports in North America, and, combined, the 10th largest in the world.

GDP growth in the area is expected to match the overall US economy’s recently revised annualized growth of 4%. This provides a strong foundation for deal making. In addition, the continuing supply-side demand for investments from private equity, the likely repatriation of money into the US, the lower corporate tax rates for strategic buyers, and the continued need for companies to innovate to remain relevant, will continue to drive M&A deals in Southern California.

CONTACT PAREN 

³Data provided by Pitchbook

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Trade Wars:

A Whole New World

by Keith Hamasaki, CPA, Senior Manager - Assurance & Advisory

A

nother week, another new list of potential tariffs on imported manufactured products. If you’re manufacturing in China, Europe, Canada, or Mexico the potential trade war will affect your business.

Trade War, What’s Happening?

For companies manufacturing goods outside of the United States and importing them, there is a list of products that potentially have a tariff. A tariff is an additional tax on products because it is manufactured outside of the United States. A full list can be found on Docket No. USTR-2018-0005 from the Office of the United States Trade Representative.

For each action, there is a reaction. As the US applies pressure on China, NAFTA, and the EU, there are similar proposals to have tariffs on US products imported to those countries. This increases the cost of doing business outside of the US and certain company strategies can lose their effectiveness.

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Tariffs, Trade Wars…a sudden 10% increase in your raw materials can be devastating to margins, but what can be done?

As the trade wars and tariffs escalate, companies may seek more local suppliers to eliminate the risk of tariffs, but there is always the question of quality and timeline demands. Therefore, companies may find safety in hedging their commitments to purchasing inventory outside of the US through derivative instruments.

Manufacturing or distribution companies that purchase significant amounts of raw materials or finished goods may consider reducing their foreign currency volatility by hedging.

To hedge against foreign currency fluctuations is a means to decrease risk by controlling foreign currency volatility, but there are certain complexities to accounting for each of these transactions that can add additional cost and time.

Accounting for Hedging Instruments Cash flow hedges manage the transaction risk and hedge against variability of anticipated future foreign cash flows by converting cash flow to a fixed amount.

Fair value hedges manage translation and transaction risk that hedge the value of a firm commitment.

The purpose of the accounting treatment is to separately present the hedged risk against foreign currency fluctuations. In accordance with ASC 815, a hedged item denominated in a foreign currency may designate itself as either a fair value hedge or a cash flow hedge. The company must determine the type of hedge they will use to manage their foreign currency fluctuation risk. If the company determined that they have a fair value hedge, then gains and losses are recorded to the income statement. If the company determined that they have a cash flow hedge, then gains and losses are recorded to equity as other comprehensive income. Hedging products may save a company money, but a thorough analysis with a full understanding of how to account and record the transaction is necessary.

What’s Next?

Interested in learning more about our advisory services that help you prepare detailed financial analysis to determine if your company can prepare for future risks? Here at KROST, we have a dedicated team of experts that are ready to assist you. Not only can we determine if a hedging instrument is right for you, we can also discover what other tax incentives may be available to you. Let’s get started today, contact us.

CONTACT KEITH 

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Beyond the Assembly Line: Benefits of

Tech Trends in Manufacturing

by Mara Garcia, Senior - Assurance & Advisory

T

he Association of Equipment Manufacturers listed five manufacturing trends to note in 2018; the internet of things, industry 4.0, automation, additive manufacturing, and augmented reality. All of these trends highlight the use of technology to evolve the manufacturing process. Companies now utilize cutting-edge technology such as Artificial Intelligence (AI) and virtual reality to help reinvent and make prototypes. With all these new, innovative advances in technology, what are the tax, accounting, and compliance implications?

As labor costs increase and the threat of tariff wars looms, we are seeing manufacturing companies invest large amounts of capital into technology. Whether it’s the implementation of industry 4.0, 3D printing, or the use of the concept of augmented reality, companies are relying on new technologies to increase their efficiencies without increasing their import taxes, and to help them stay at the forefront of the latest trends in manufacturing. Those who understand the impact of technology on the manufacturing industry and start planning for early implementation will reap the rewards on their bottom line.

With the rapid pace of change in technology in the manufacturing industry, it is now more crucial than ever for manufacturers to have solid financial and tax strategies in place. Not only are there inherent advantages to improving processes and procedures from an operations standpoint but there are added tax benefits that result from integrating new technology into manufacturing systems. Additionally, enhanced internal controls can help improve the bottom line and provide peace of mind in the face of a potential cyber attack. There are several opportunities that companies should consider as part of their financial planning and operations strategy as we look toward 2019 and beyond.

Areas of Opportunity to Consider Assurance & Advisory

Implementation of new technology is not cheap, and many companies opt to finance these changes. To finance technology improvements, companies must consider whether the loans require audits or reviewed financials statements as part of the covenants. Further, understanding internal processes and controls is important to allow the owners and

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executives to step out of the trenches and take ownership of their executive responsibilities. Our advisory services help businesses put these processes together and prepare them for implementation. Moreover, with businesses becoming more digital, the risk of breach and lost information is high. For more information on cybersecurity and manufacturing, see our article on page 4.

Cost Segregation

Cost Segregation accelerates depreciation deductions and defers federal and state income taxes on buildings that have been constructed, purchased, expanded or remodeled. Manufacturing facilities that may be renovated to accommodate the new technology being implemented can now increase cash flow through this strategic tax planning tool.

“With rapid upgrades and new trends, manufacturers are attempting to better understand the effects of all of this change on operations.”

Fixed Asset Depreciation Review

While a Cost Segregation Study focuses on buildings, a Fixed Asset Review encompasses all fixed assets a company owns, including real property, machinery, furniture, fixtures, and equipment. Fixed Asset Review can provide manufacturers with immediate and substantial cash flow by way of accelerating deductions on assets that were previously placed in service with longer tax lives. Other benefits include accurate reporting of book-tax differences and more accurate tax filings.

IC-DISC Federal Export Tax Incentive

The Interest Charge Domestic International Sales Corporation (IC-DISC) offers significant Federal income tax savings for making or distributing US products for export. The IC-DISC was originally created by Congress to promote export sales by allowing companies to defer income, with interest charged on the deferred tax. Now, the IC-DISC provides significant and permanent tax savings for producers and distributors of US made products used abroad. For more on IC-DISC, see our article on page 6.

R&D Tax Credits

Maybe the most obvious tax planning strategy for manufacturers that are embracing new technology to improve processes and procedures to consider is the R&D Tax Credit. While it’s been around since 1981, recent tax law changes made the benefit permanent making it much easier for businesses to plan for the credit. Additionally, the PATH Act extended the benefit to small businesses and start-ups. For more on the Research & Development Tax Credit, see our article on page 9 for a full explanation of the benefits of the credit for the manufacturing industry.

Taking Advantage of the Benefits of Technology in the Manufacturing Industry With change comes new responsibility to seek out the latest information to protect and preserve, and in many cases, improve the business’ bottom line. In addition to the strategies list above, another look at internal controls and procedures, technical guidance advisory, and management information systems could yield added benefits. Manufacturing is seeing a surge as it continues to be a major player in the US economy. Now is a great time to keep a finger on the pulse of this intersection of technology and its impact on manufacturing for better or for worse.

CONTACT MARA  Association of Equipment Manufacturers, 5 Manufacturing Trends to Watch in 2018

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K R O S T C PA S . C O M

KROST QUARTERLY MAGAZINE

With 79 years of experience, KROST has assisted businesses and individuals reach their financial goals through their in-depth knowledge of Tax, Accounting, Assurance and Advisory, M&A, and Wealth Management services. KROST also provides specialty tax services such as Cost Segregation studies, R&D tax credits, Green Building Tax Incentives, Repair vs. Capitalization, Fixed Asset, IC-DISC, and more.

Pasadena • Woodland Hills • Valencia Phone: (626) 449-4225 Fax: (626) 449-4471 KROSTCPAs.com