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April 04, 2018 02:00 AM

Godwin: New tax law may lead to buying rather than shopping

Audrey LaForest
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    Battenfeld-Cincinnati USA
    Godwin

    Paul Godwin, president and CEO of extrusion machinery maker Battenfeld-Cincinnati USA, said NPE2018 could see an increase in equipment buyers instead of just browsers thanks in part to the new tax law.

    The Tax Cuts and Jobs Act, signed into law by President Donald Trump on Dec. 22, slashes corporate tax rates to 21 percent from 35 percent and provides an immediate 100 percent depreciation for capital investments.

    "I think the tax law will be a stimulus for some equipment purchases," Godwin said in an email interview. "The purchase of capital equipment is planned for well in advance, but this law could shift planned purchases forward."

    McPherson, Kan.-based Battenfeld-Cincinnati has no immediate short-term changes planned for the company's investment schedule this year, Godwin said, but he is anticipating the atmosphere at NPE2018 to be different from previous years.

    "The new tax law may make the NPE a buying show rather than a shopping show," he said. "The outlook for 2018 remains positive in the extrusion markets we participate in."

    Wherever you fall on the shopping spectrum — from "just looking" to "Who do I make the check out to?" — Battenfeld-Cincinnati will have a range of extruders — a style for everyone, if you will — at booth W2771.

    The company's SolEx NG single-screw extruder, ConEx NG twin-screw conical extruder and StarExtruder are highlights of the showcase. All three extrusion systems will be equipped with the company's Industry 4.0-compatible BCtouch UX control, Godwin said.

    "Industry 4.0 will be an ongoing technical development for many years," he said. "This will be a growing interest for our industry and our clients as the definition develops over the next few years."

    The SolEx NG offers up to 20 percent higher outputs and uses 15 percent less energy. The extruder's new processing unit also results in a reduction of melt temperature by 15° to 20° F.

    The ConEx NG boasts a highly flexible design, offering a wide range of outputs for the extrusion of PVC pipe, profile and sheet. It enables energy savings up to 20 percent, the company said, and also offers configurations for primary or coextrusion applications.

    Battenfeld-Cincinnati's StarExtruder, designed for high-grade food packaging such as thin-walled, resealable plastic containers or trays, consists of three parts: a single-screw zone for plastification, a planetary roller section for efficient degassing and an optimally dimensioned discharge zone.

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