Impacting the Bottom Line with Economic Incentives
by Leslie Rubin and Sarah Rubin
There is a bumper sticker that says, “When the going gets tough, the tough go shopping.” Frankly, many economists and government officials are hoping there is some truth to the saying and that eventually the general public will emerge from repeated waves of economic shock. The economic stabilization and healing that needs to occur is likely to take another year if we can believe what we read and hear.
A year to 15 months is barely enough time to plan for, and
construct, a 250,000-square-foot warehouse but it can seem a financial eternity in uncertain economic times for logistics companies that have experienced reduced margins for nearly two years already.
Companies increase revenue and reduce costs to realign margins. Economic assistance in the form of grants, tax savings and low-interest loans sourced from various levels of government will directly impact the bottom line and thus effectively increase revenue. Under the right circumstances, the economic benefits will also offset cost and can potentially justify incurring planned investments sooner. The challenge becomes which program to pursue and when.
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