The manufacturing industry is one of curiosity, determination, and innovation. Unfortunately, women in manufacturing can face an uphill battle when it comes to launching and building their companies for a variety of reasons.
These tips can help you protect your business and allow it to flourish.
Invest in Cybersecurity
The manufacturing industry is one of the top targets for cyber criminals, and cyberattacks are costing small businesses $200,000 on average.
Losing control of your automated systems means missing production deadlines. Delays of this nature can have devastating effects as cyber criminals know that you’ll pay any price to regain control of your business.
Therefore, you don’t only lose money from halted productions, but you’ll have to dig into your reserves as well.
It’s best practice to be proactive and not wait for an attack to up your security. Protect yourself and your business by setting up cyber security trainings, having protocols in place, and talking to a cybersecurity professional before anything happens.
Secure Tax Credits
Investing in yourself doesn’t always mean using your home as collateral to fuel your business. You can use tax credits from the Federal and state government to take your manufacturing company to the next level.
The Advanced Manufacturing Investment Credit is one such example. The IRS states:
The Advanced Manufacturing Investment Credit was established by the Creating Helpful Incentives to Produce Semiconductors Act of 2022, commonly known as the CHIPS Act.
The tax credit is equal to 25% of the qualified investment for the taxable year with respect to an advanced manufacturing facility of an eligible taxpayer. An advanced manufacturing facility is a facility whose primary purpose is the manufacturing of semiconductors or semiconductor manufacturing equipment.
Many manufacturing companies could also take advantage of Federal and state Research and Development Tax Credits (R&D tax credits). These credits are intended to reward women in manufacturing who take a financial risk to experiment and innovate.
Below, you can see what types of manufacturing activities would count for these credits:
- Improving product quality
- Development of second generation products
- Product development using computer-aided design tools
- Tooling and equipment fixture design and development
- Optimizing manufacturing processes
- Designing manufacturing equipment
- Designing, constructing, and testing prototypes
- Designing and developing cost-effective operational processes
- Alternative material testing
- Evaluating and determining the most efficient flow of material
- Increasing manufacturing capabilities and production capacities
- Achieving compliance with changing emission regulations
R&D tax credits can provide a substantial financial boost to your company; a Federal R&D tax credit alone can amount to 7-10% of your R&D costs.
Build a Network
A strong network can take your business to new heights. While joining local networking groups can be a great way to learn about your neighboring businesses, you should also consider joining groups designed specifically for you.
Women in Manufacturing is one such entity that has chapters across the United States. This group offers in-person educational events as well as online seminars.
Women in Manufacturing: What You Need to Know
Be proactive when it comes to building cyber security, financial resources, and friendships to give your manufacturing business the best chance at success.
It can be lonely running a business, but with organizations like Women in Manufacturing, you can learn from your peers and discover new resources. Don’t forget to take advantage of financial resources like tax credits to keep your business thriving too.
Contact the Bowers R&D team today to learn if your manufacturing business could be eligible for an R&D tax credit.