The Section 179 Trap: Why Tax Breaks Shouldn’t Drive Your Equipment Purchases, Ep #32
Release Date: 11/06/2025
Buy the Numbers
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,...
info_outlineBuy the Numbers
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...
info_outlineBuy the Numbers
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...
info_outlineBuy the Numbers
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_outlineBuy the Numbers
In this episode of Buy the Numbers, I sit down with Roger Atkins, President of the National Tooling and Machining Association (NTMA), to talk about the real state of U.S. manufacturing as we close out 2025. Representing more than 1,000 small and medium manufacturers nationwide, Roger brings a boots-on-the-ground perspective to the headwinds, opportunities, and trends shaping the industry right now. The conversation goes well beyond statistics to explore the forces behind them. Roger shares his preview of the MTForecast conference and NTMA’s ENGAGE event, pulling back the curtain on survey...
info_outlineBuy the Numbers
When you’re buying a machine shop for the first time, it’s easy to feel like you’re lost in the dark. I’ve been through more than 150 transactions in my career, but I still remember what it was like sitting across from my first seller—wondering if I was asking the right questions or if I was missing something important. That’s why I love conversations like this one. In this episode of Buy the Numbers, I sit down with Jeff Lee, Operations Manager at Hayer Engineering in Singapore. Jeff reached out after listening to some of our episodes on acquisitions, and the quality of his...
info_outlineBuy the Numbers
In this episode of Buy the Numbers, Mike Payne sits down with Dave Necessary, Executive Vice President of Products and Markets at Gardner Business Media, to dig into the power of benchmarking and the Top Shops program. For more than a decade, Top Shops has been the definitive survey that shows manufacturers where they stand—highlighting the practices, strategies, and investments that consistently separate the best from everyone else. Dave shares how the survey functions like a business health check-up, providing both an industry-wide benchmarking standards report and a...
info_outlineBuy the Numbers
Selling a business is rarely just about the numbers—and in this episode of Buy the Numbers, we explore why. Recorded at the CLA Connect Center in Minnesota, Mike Payne and guest co-host Erin Mickels sit down with two sets of owners who have recently gone through the process of selling their companies. From fielding unsolicited offers to choosing between 26 potential buyers, their stories highlight the strategic, emotional, and deeply personal factors that shape a sale. Joel Bauer of Midsota Manufacturing shares his unlikely journey from part-time welder to co-owner of a thriving...
info_outlineBuy the Numbers
If you think selling your business is just about getting the highest number, think again. In Part II of my conversation with the all-star team at CLA—Erin Mickels, Mike Britten, and Mike Pohl—we dig into the fine print that can make or break your deal after the handshake. From LOIs to sales price allocations to working capital battles, this is where the real money is won or lost. We start with what seems like a formality—signing the LOI—but as you’ll hear, that’s often the moment your leverage walks out the door. I’ve seen it firsthand: missed tax planning, bad...
info_outlineBuy the Numbers
If you’ve ever thought, “I’ll sell when I’m ready”—you’re already behind. In this episode of Buy the Numbers, I sit down with three powerhouse advisors from CLA—Erin Mickels (owner transition expert), Mike Britten (tax wizard), and Mike Pohl (wealth whisperer)—to unpack what it really takes to set yourself up for a successful exit from your manufacturing business. We talk through the overlooked planning window between “someday I’ll sell” and “it’s time to list.” Whether you're ten years out or just three, this conversation will help...
info_outlineWhen 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 Commercial Capital to talk about how to make smarter, data-driven decisions when it comes to equipment purchases. Ty shares a powerful analysis tool that helps manufacturers look beyond tax savings to understand true ROI—factoring in cash flow, breakeven points, and strategic timing. Together, we dig into what it really means to make a strategic equipment investment instead of an emotional one.
We also talk about what we’re seeing in the market after attending AMT’s MTForecast. While 2025 hasn’t lived up to some expectations, all signs point to a strong rebound in 2026. That makes this the perfect time to evaluate your CapEx plans, your lending relationships, and your readiness for growth. Ty and I explore how financing can be an influencer, not the decision itself—and why the best purchases are made in alignment with your customers, not just your accountant.
If you’ve ever felt the year-end pressure to spend before you think, this conversation will help you pause, run the numbers, and invest with confidence.
You will want to hear this episode if you are interested in...
- (1:17) Welcome to Buy the Numbers — Mike and Ty catch up and set the stage
- (1:40) Why manufacturers love Section 179—and why it shouldn’t drive your buying decision
- (2:19) Grow your top and bottom line with CliftonLarsonAllen (CLA)
- (2:58) Ty’s equipment purchasing analysis tool and how it partners with firms like CLA
- (6:15) MTForecast recap: What 2025 taught us and what 2026 could bring
- (7:43) “Finance is an influencer, not the decision”: Understanding your customer’s demand before you buy
- (9:33) Pent-up demand and why Q1 2026 could be explosive for U.S. manufacturing
- (11:11) Banking relationships vs. alternative lending—why both matter
- (16:34) Verdant Commercial Capital’s tailored approach to manufacturing finance
- (17:13) Structuring financing: loan-to-value and including setup, tooling, and rigging costs
- (19:50) Real numbers: Comparing cash flow impact between bank vs. Verdant financing
- (21:55) The Verdant application and approval process—approvals in 24–48 hours
- (24:57) Financing for cash-based businesses—building credit history the smart way
- (28:24) Setting good financial habits early to be “finance ready” when opportunity strikes
- (30:46) Beyond equipment: Verdant’s acquisition by Axos and expanded capabilities
- (33:43) How to follow Ty for updates on new financial services
- (37:07) How ProShop ERP can help you achieve on-time delivery
Resources & People Mentioned
- Verdant Commercial Capital’s tailored approach to manufacturing finance
- Grow your top and bottom line with CliftonLarsonAllen (CLA)
- How ProShop ERP can help you achieve on-time delivery
Connect with Ty Willis
- Connect on LinkedIn
- Verdant Commercial Capital
Connect With Buy the Numbers
Subscribe to Buy the Numbers
Audio Production and Show Notes by - PODCAST FAST TRACK