Fed Survey: US Economy Strong but Hindered by Bottlenecks; Democrats Call for a Tax on Imports From Polluting Countries; A new era for R&D tax relief: Vital funding for UK manufacturing; How is digitalisation transforming the manufacturing Industry?
Fed Survey: US Economy Strong but Hindered by Bottlenecks
The Federal Reserve’s latest nationwide business survey found that the economy strengthened further in late May and early June. The U.S. economy is rebounding strongly from the recession. That has led to a surge in people seeking everything from new cars to hotel stays, leaving businesses struggling to find enough components and employees to meet the demand.
The report said that business sectors dealing with transportation, travel and tourism, and manufacturing all experienced above-average economic growth in the period.
Democrats Call for a Tax on Imports From Polluting Countries
Top Democrats agreed to include a tax on imports from nations that lack aggressive climate change policies as part of their $3.5 trillion budget plan.
The move to tax imports was made public Wednesday, the same day that the European Union outlined its own proposal for a similar carbon border tax, a novel tool that is designed to protect domestic manufacturing while simultaneously pressuring other countries to reduce the emissions that are warming the planet.
Source: The New York Times
A New Era for R&D Tax Relief: Vital Funding for UK Manufacturing
For many UK manufacturers, R&D tax relief has become a tried-and-trusted way to fund investment in R&D. The incentive has offered firms a steady source of cash with which to hire more staff, develop new products and overcome shocks like COVID-19 and Brexit-induced supply chain disruptions.
HMRC has grown increasingly concerned about errors (and fraud) occurring in R&D tax relief claims. As such, it has introduced a number of measures aimed at improving the quality of R&D claims (such as 100 new compliance staff to its R&D unit).
Source: The Manufacturer
How is DigitalisationTransforming the Manufacturing Industry?
Manufacturing is going through a digital transformation and smart technology, data analytics and connected devices are enabling manufacturers to dramatically increase their efficiency, productivity and accuracy. Advice for a successful digitalisation strategy:
- identify digitalisation objectives;
- formulate a digitalisation strategy;
- select the appropriate technology enablers;
- establish technology leadership; and
- train your staff and introduce a digital culture.
Source: The Manufacturer