When it comes time to sell metalworking equipment in North Carolina, many equipment resellers wonder what makes the state so special. With a strong reputation for economic growth, excellent incentives to start and retain businesses in the area and a vibrant business community, it's no wonder businesses around the country and around the globe are focusing on this southern gem. Here's a good look into why North Carolina has become so strong in manufacturing and why this makes it a great environment for selling metalworking equipment.
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Why North Carolina? When a business lands on Forbes' Best States for Business for 12 years running and is the only one in the top five to accomplish this feat, the business world stands up and pays attention. Taking the top spot in 2017, the Tar Heel state solidly kicked Virginia and Utah out of the coveted position they'd been fighting over since 2006, booting the traditional leaders back to fourth and second place, respectively, with Texas and Nebraska rounding out the remainder of the top five at third and fifth.
North Carolina reached this position by having an improved overall economic outlook compared to the other 50 states as the economy continued to recover from the 2008 recession, but also featured the second-lowest business operation cost nationwide in terms of labor, taxes and energy. It also features the second-smallest union workforce in the country, topped only by neighboring South Carolina. This makes free shops a safer bet in the state, allowing for competitive wages that are free of outside interference by union representatives in many cases.
Among the areas that make North Carolina stand out among the states for businesses is the number and variety of business incentives the state offers to attract and retain its vibrant business community. Here is a look at the top four programs that impact manufacturing and make selling metalworking equipment in North Carolina a strong business interest to profitably pursue:
Administered by North Carolina's Department of Commerce, the Community Development Block Grant Building Reuse Program, CDBG Building Reuse for short, is used to funnel funds from the state into vacant industrial and commercial buildings that can then be reused for new businesses. The company must work with a local government to secure this grant funding, with the understanding that the company that receives the fund will use their operation to create permanent full-time jobs.
Falling under the authority of HUD's Title I, the program is designed to develop new jobs for low- and middle-income individuals across the state. Eligibility for the block grant is contingent on hiring 60% of the workforce from low-income individuals whose annual income falls below the 80th percentile of median income for the area for the past 12 months. The grant can be as high as $750,000 but is limited to $12,000 per job created, though manufacturing falls under a special circumstance as priority projects that raises that limit to $20,000 per job that is created. It can be combined with the Rural Division Building Reuse Program below with the per-job allowance for the CDBG Building Reuse side of $6,000 and $10,000 respectively, for up to 50% of the total renovation costs.
North Carolina's Manufacturing Tax Exemptions provide ample incentives for businesses to start and stay in the state. For manufacturing or mill machinery, metalworking equipment in North Carolina enjoys a complete exemption from sales and use tax, making machinery replacement much less expensive. That's among the reasons why selling metalworking equipment in North Carolina is such a profitable industry, because manufacturers are more open to selling metalworking equipment that can be replaced without the added burden of taxes.
There is also no sales and use tax on energy sources used for manufacturing such as electricity, fuel and natural gas, and raw materials enjoy the same tax exemption, allowing manufacturers in the state a significant break on many aspects of their operational expenses. Finally, state and local governments exempt business inventories from property taxes, allowing manufacturers to retain a stockpile of inventory without being penalized for doing so.
Need another good reason for selling metalworking equipment in North Carolina? How about not having to pay taxes when selling to a large fulfillment facility? Provided that you're selling equipment, accessories, attachments or repair parts for a piece of equipment that is used in the distribution process for the business. This includes the operations for not only simple distribution, but also receiving, inventory, sorting and repackaging.
However, there are some exceptions to the exemption. The facility's main purpose must be fulfillment. To be certified as a large fulfillment facility, it must be certified by North Carolina's Secretary of Commerce that an investment of $100 million in terms of real and tangible personal property was made within the first 5 years after the initial investment, and that the facility will have an employment minimum of 400 within the first five years of operation.
North Carolina is third in the South in terms of population but leads the region in terms of industrial development. Some of the focus on rural development has been to prop up the rural areas that lost manufacturing opportunities during the recession, making the regions a prime market for creating new businesses, many of which would be very interested in buying used equipment from companies currently selling metalworking equipment in North Carolina to get started.
Manufacturing runs strong in North Carolina in general, accounting for nearly 21% of the state's output while employing 10.8% of its workforce. In addition to a wide assortment of traditional manufacturing opportunities, the strong growth around IT and digitization in the Raleigh area is leading a resurgence of high-tech manufacturing in the state, boosting the state's already robust manufacturing statistics.
This strong community of manufacturers in the state has opened the doors for selling metalworking equipment in North Carolina. As the economy continues to grow and the internet allows even those in the most far-flung rural communities to compete on a global state, North Carolina's one-day access to over 100 million consumers makes the demand for metalworking equipment in North Carolina even stronger than ever.
Combined with business incentives that are driving entrepreneurs away from expensive cities to more picturesque rural regions of the state, the demand for quality metalworking equipment to support their new businesses is at an all-time high. Being able to provide solid used metalworking equipment to new entrepreneurs in North Carolina allows them to moderate the risk of their new enterprise with the lower cost of used equipment.
With the tax incentive plan in place, selling metalworking equipment in North Carolina is a hot prospect. It's an excellent way to increase or replace an income while enjoying more freedom for re-seller entrepreneurs. You can purchase used equipment that is still in good shape with years of reliable service left from manufacturers who are ready to invest in new machinery now, then sell it to entrepreneurs who have come through the last recession and want to moderate the risk of opening a new business with lower-cost equipment that still provides quality production.
By positioning yourself between these two extremes, you can quickly benefit and profit by serving as a middleman to connect the two parties: established, upgrading businesses and new, establishing entrepreneurs. It also puts you in a position of strength to sell good equipment out of state to other manufacturers who may not enjoy the same tax benefits as North Carolina businesses in terms of machinery tax breaks.
Today's increasingly specialized manufacturing is driving business owners to look further to find the right equipment they need to get the job done. This puts you in a great position to market to these professionals by having the machinery they need. To maximize your profits, however, you'll need to go beyond traditional marketing to using digital assets to promote and sell that machinery. Digital platforms such as Aucto allow you to reach the business professionals you need without being tied to a phone or office.
Instead of needing to know the right people and taking a lot of time to build a reputation with them to make you the first person they think of when it's time to sell or buy equipment, the internet allows you to instantly show up at the top of their search engine without a lot of wasted effort. Online platforms like Aucto provide you with instant access to an existing buyer base. This makes it easy to connect with the right buyers at the right time to maximize your reach and your profits. When you combine our easy-to-use platform with the range of marketing and sales tools we offer, your success is wrapped up. We've developed a process that makes setting up and monitoring your online auction listings for selling metalworking equipment in North Carolina effortless. Take a few minutes today to set up an account. After listing a few pieces of used metalworking equipment on our dynamic website, you'll quickly see the profitable fruits of your entrepreneurial labors.
The metalworking industry and manufacturing industry are crucial components for North Carolina economic backbone. As more manufacturers continue to operate in North Carolina, the level of competition will only continue to rise. By leveraging the expertise and advantages of Aucto you will be able to get an edge over the competition allowing you to recover capital from used metalworking equipment.
Have a question about buying used industrial equipment or selling used industrial equipment online? Give Aucto a call at 1 (844) 326-7339 or email at email@example.com, and our team of experienced online auctioneers and customer support team will be more than happy to answer them.
Like this article? Check out some of our recent articles Selling Industrial Equipment With Online Auctions, 5 Common Myths About Selling Used Equipment Online, and Best Practices For Selling Used Equipment On Aucto to learn more.
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