Diving into R&D Credits, Entity Selection, and the Work Opportunity Credit, Ep #11
Release Date: 02/20/2025
The Cost of Quality — Why Getting It Right Is the Fastest Way to Get Paid, Ep #39
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Quality is often treated like a cost center in manufacturing. Something we have to do to satisfy customers, auditors, or certifications. But in my experience, quality is much more than that. It’s one of the biggest drivers of cash flow, reputation, and long-term profitability in a shop. In this episode of Buy the Numbers, I sat down with Mehul from Ground Control to talk through the real, often hidden, cost of quality. Our conversation starts with a simple but critical idea: parts don’t get paid for unless the paperwork is right. You can machine a perfect part, ship it on time, and...
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Owning the Problem: Why Accountability, Communication, and Culture Drive Throughput, Ep #38
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One of the patterns I keep seeing in manufacturing has nothing to do with machines, software, or technology. It shows up in how teams respond when something goes wrong. In this episode of Buy the Numbers, I sat down again with Josh McKain from Throughput Mastery to talk about the habits that actually drive throughput, especially accountability, communication, and culture. Josh has now hosted more than a dozen live conversations with manufacturing owners and leaders, and what stood out to me is how often completely different topics circle back to the same root issue. Whether the discussion...
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How a Fourth-Generation Manufacturer Measures Success, Ep #37
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What changes when you’re not building a business to sell, but building one to hand down? That’s the question that kept coming up for me in this conversation. In this episode of Buy the Numbers, I sat down with Jack Watson of HFW Industries, a fourth-generation manufacturer whose family has been operating the same business for nearly 80 years. Jack’s story starts with his great-grandfather in 1947, fresh out of World War II, taking a bet on an emerging technology that would eventually become the foundation of HFW’s identity. What struck me wasn’t just the history, but how that...
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The Inventory Blind Spot: How LIFO Can Unlock Massive Tax Savings, Ep #36
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Inventory is one of the most overlooked levers in manufacturing finance, yet it is often the single largest asset sitting on a company’s balance sheet. In this bonus episode of Buy the Numbers, Mike Payne is joined by inventory accounting experts Erica Parra and Cindy Houser from CLA to unpack why inventory accounting methods deserve far more attention than they typically receive. Most manufacturers default to FIFO or weighted average simply because that is how their ERP is set up. But in periods of inflation, tariffs, and volatile raw material pricing, that default choice can quietly...
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Innovation at the Speed of Trust: Why Real Progress Happens When People Connect, Ep #35
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Innovation in manufacturing is often framed as a technology problem. Better machines, faster software, smarter automation. But in this episode of Buy the Numbers, the conversation takes a different turn, one that looks past tools and toward the human systems that actually make innovation stick. Mike Payne is joined once again by Al Whatmough, CEO of Toolpath, for a wide-ranging discussion on why innovation truly happens at the speed of communication and why trust, relationships, and shared experiences matter more than ever in an AI-driven world. From AI-powered productivity to the limitations...
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QDISC Explained: A 5-KPI System for Smarter, More Profitable Manufacturing, Ep #34
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KPIs can feel like a buzzword—every manufacturer knows they should be tracking them, but few feel confident about where to start or what actually matters. In this episode of Buy the Numbers, Mike Payne sits down once again with Jon Hughes of CLA to unpack the real purpose of KPIs, why they’re so misunderstood, and how data-driven decision-making can completely change the way a shop performs. Mike and Jon dive into the QDISC framework—Quality, Delivery, Inventory, Safety, and Cost—and explore how these five buckets give manufacturers a clear, stable foundation for...
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Cash Flow Power Moves: Pricing, Terms & Tools That Protect Your Business, Ep #33
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In this special crossover episode of Buy the Numbers, Mike Payne joins Josh McCain on The Throughput Show for a fully interactive, live conversation about one of the most misunderstood and mission-critical topics in manufacturing: cash flow. Unlike traditional episodes, this one unfolds in real time with audience questions, open dialogue, and the kind of raw, honest examples operators rarely get to hear outside of private masterminds. Josh kicks off the episode with his hallmark energy and levity—complete with an unexpected “musical” intro for guests Mike, Jon Hughes,...
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The Section 179 Trap: Why Tax Breaks Shouldn’t Drive Your Equipment Purchases, Ep #32
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When Section 179 and bonus depreciation come back into play, it’s easy to get swept up in the excitement of “saving on taxes.” Every year around this time, I start hearing from shop owners who are ready to buy a new machine before the end of Q4—sometimes for the right reasons, but often for the wrong ones. Don’t get me wrong, I love a good deduction as much as anyone. But if you wouldn’t buy that equipment without the tax break, you probably shouldn’t buy it because of it. In this episode of Buy the Numbers, I sit down with my good friend Ty Willis from Verdant...
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How Foreign Trade Zones Can Unlock Millions in Working Capital, Ep #31
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When tariffs, trade policy, and cash flow collide, manufacturers are forced to think creatively—or risk being crushed by uncertainty. That’s exactly where Mary Buchzeiger, CEO of Lucerne International and Lucerne Global Solutions, found herself. With skyrocketing tariffs on imported automotive components, Mary realized the solution wasn’t to absorb the hit—it was to rewrite the playbook altogether. In this episode of Buy the Numbers, we dig into how Mary leveraged a little-known financial and logistical strategy: the Foreign Trade Zone (FTZ). By turning Lucerne’s Michigan...
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Building a KPI Culture That Drives Real Improvement on the Shop Floor, Ep #30
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In this episode of Buy the Numbers, host Mike Payne sits down with continuous improvement coach and Lean Six Sigma Master Black Belt Brian Karp to dig into the metrics that matter most for manufacturing leaders. Together, they explore how data can be used not just to measure performance, but to transform culture, drive engagement, and spark meaningful improvement across every department. For more than a decade, Brian has helped manufacturers simplify their approach to measurement—turning overwhelming spreadsheets and endless KPIs into tools that actually guide better decisions....
info_outlineWhat if you could save thousands on your taxes with a few strategic changes to your business? In this episode, Nick Romanelli and Dylan Valentyn from Clifton Larson Allen share key tax strategies that many manufacturers overlook.
We dive into the R&D tax credit, showing how manufacturers—whether small job shops or larger factories—can qualify by innovating in ways they may not have considered, such as improving products, developing new processes, or creating prototypes. By documenting these activities and tracking time and materials, manufacturers can unlock valuable credits that could significantly boost their bottom line.
We also explore the impact of the Section 174 rules, which now require manufacturers to capitalize and amortize research expenses over several years rather than expensing them immediately. While this change can affect cash flow, the R&D tax credit offers relief by providing a dollar-for-dollar reduction in tax liability. Nick and Dylan explain how to navigate these changes and ensure manufacturers are maximizing their R&D claims.
Next, we discuss the critical decision of entity selection—LLC, S Corp, or C Corp. Nick and Dylan break down the advantages and disadvantages of each structure, and how making the right choice can lower your tax burden, attract investment, and set up your business for long-term success.
Finally, we introduce the Work Opportunity Tax Credit (WOTC), a valuable but often overlooked tax benefit for manufacturers who hire employees from groups facing employment barriers, such as veterans or long-term unemployed individuals.
Tune in to discover how these tax strategies can save you money and help your manufacturing business thrive, plus a look at what tax changes to watch for in 2025.
You will want to hear this episode if you are interested in...
- (0:00) Introduction to the episode and the guests
- (0:59) Depreciation strategies for IT and power infrastructure
- (02:25) The overlooked opportunity of R&D tax credits
- (04:34) Tracking R&D activities for tax credit qualification
- (10:32) The process for claiming R&D credits
- (13:51) The impact of the 174 rules on research expenses
- (17:10) Tax strategy for manufacturers considering entity selection
- (21:16) Exploring the Work Opportunity Credit
- (24:18) Tax changes to watch for in 2025
Resources & People Mentioned
Connect with Dylan Valentyn and Nick Romanelli
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Audio Production and Show Notes by - PODCAST FAST TRACK