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1993-2010 ublication
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Global Supply Chain Collaboration 2
I often get asked work together, team up, join forces, pool consolidation, and then came lean logis- tracing, diversion, and expediting when
by shippers if we can resources, act as a team, work in partner- tics, and now the latest trend is necessary. Mode and carrier compliance
collaborate their ship, or in general cooperate with each “Optimization”. Whatever term blows is greatly enhanced when automated and
freight for cost sav- other. your hair back it’s all about saving can significantly lower costs and improve
ings, which my stan- The logistics industry is a matrix of money and doing things more efficiently data accuracy. Real time collaboration in
dard answer is different modes of transportation that in the supply chain. the supply chain can increase forecast
always “Of Course”. collaborate for profit on a global basis to Technology has enabled and enlight- accuracy, help balance service levels and
Now my first ques- move our goods and services across bor- ened the supply chain world to the bene- costs, and accelerate problem recognition
tion to the shipper is ders, oceans, and cultures. Freight fits and opportunities of global collabora- and resolution. Technology gives us the
John Toles what do you think Forwarders and Consolidators are mas- tion. It provides the platform to share metrics to manage, measure, and
collaboration really ters at collaboration and they have been information, knowledge, risk, and how improve our collaborative efforts
is? There are so many ways to collaborate around since the first mule carts were companies operate and make decisions. throughout the supply chain.
that it really is hard for a definitive objec- used to haul freight. Before collaboration Technology gains just in the past decade My short term definition of
tive answer. To collaborate one must became the buzz word the term used was have created new opportunities for col- “Collaboration” is “Cost Savings” and I
laboration. 24-7 electronic global com- don’t mean a “Rate Play” as many people
San Francisco, CA – President are currently being raised in later years. that were not conceivable just a few short John Toles is the VP of Global Trade
Obama has signed the new Small In other words, the Government will give years ago. at Supply Chain Solutions Inc. you can
Business Bill that Congress approved in you more deductions now when tax rates Visibility technology in the supply reach him at 616-554-8915 or email
early October. The bill provides new tax are low and then impose a higher tax on chain is helping to control inventory lev- jtoles@scsolutionsinc.com
breaks to small businesses, increases the recapture. els and allows for shipment tracking,
SBA lending limits and waives loan fees. "A double tax deduction can be
Best of all, it provides $30 billion to claimed for startup expenditures to
banks to increase lending. $10,000. However, they need to be amor-
But will these new incentives excite tized over a 5 year period. It’s not clear how
small business and banks to take the $30 much stimulus this is creating for jobs.
billion? Alan Olsen managing partner of "At the same time this Small
Greenstein Rogoff Olsen & Co. LLP, had Business Act is being passed, the Bush
this to say: Tax Cuts are in jeopardy of expiring,
"One weakness of the bill is that it thereby creating a higher tax rate and
does not require banks to provide the $30 removing economic stimulus. Congress
billion in loans to small businesses. should focus on giving the American
Although there are tax breaks in the bill, people real tax breaks that encourage
the uncertainty about the extension of businesses to grow.
the Bush tax cuts has businesses taking "Investment tax credits without lim-
a 'let’s wait and see' approach. its to income would do such a thing.
"Additionally, the new tax act is still a Lowering taxes allows business to grow,
far cry from stimulating this economy. The allows for greater disposable income and
recent tax act is a start, but has little good thus creates more jobs in the economy.
news. The Act doubles the 179 expensing "Remove the AMT tax and lower
limit to $500,000, but few individuals government spending. Government is
stand to really benefit from the increase. using $10 billion increased spending to
To take advantage of the deductions, com- give to the IRS. It will be hard to contin-
panies can only claim the deduction to the ue to pay taxes when the well continues
extent of income. The deduction is also to run dry in this economy and other
phased out at $2 million. nations continue to take jobs from us
"The new Act also reinstates 50% because their governments have properly
bonus depreciation for qualifying proper- stimulated their economies."
ty in service in 2010. However, business
still will have a tax on depreciation recap- What do you think? Send your letters to
ture. The depreciation recapture will be the editor: editor@businessupdate.com.
taxed at ordinary income tax rates which
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5
Federal Income Tax Isn’t Everything:
Business Owners Should Consider Overall Tax Position
As we approach tion in 2010. Since the allocation of this ers and tax planning professionals alike.
an important elec- exemption was an integral component of Taking the energy normally focused on Matthew Becker is a tax partner in
tion and the end of planning for any business owner work- income tax planning in more certain leg- the Grand Rapids office of BDO. He spe-
2010, all business ing to prevent the next generation of islative environments and expending it cializes in tax consulting for private
owners are forced to ownership from having to face estate to address gift and estate tax exposure business organizations and the owners
consider changes and gift tax peril, the lack of an exemp- could be the best decision a business can of such organizations. Becker also has
under current and tion in 2010 requires fresh thinking and make in today’s environment. The ample experience in assisting clients
potential tax law. creative planning. uncertainty of income tax law could with a wide array of tax accounting
Current tax rates, • Under current law a 35% gift actually be just the catalyst that busi- method issues and has served many high
Matthew Becker established during tax rate exists for 2010. Individuals nesses need to take advantage of over- net worth individuals with estate and
the Bush who have a pattern of taxable gifts and looked gift and estate tax opportunities. gift tax planning needs.
Administration, are scheduled to expire. who are accustomed to much higher gift
Various proposals from politicians in tax rates (such as the 55% rate current
each party have been offered for consid- law provides for 2011) might want to
eration, simply adding to the uncertainty make higher value gifts in 2010.
business owners face. If we believe fed- • For estates subject to estate tax in
eral income tax rates will increase, it 2010, carryover tax basis looks like the
behooves the acceleration of income and rule, but the Internal Revenue Service
the deferral of deductions, an awkward has yet to tell taxpayers how carryover
desire for any business owner. basis is reported.
Before any business owner engages • If Congress does not act with the
in such seemingly counterintuitive behav- support of the President, the gift, estate,
ior, it certainly makes sense to wait - at and generation-skipping transfer tax
least until after the election - before mak- rate will be 55% and the lifetime exemp-
ing any decisions. While business owners tion will be $1,000,000 – making plan-
patiently wait for information regarding ning more important than it has been in
the unpredictable future of federal income a decade.
tax rates, now is an ideal time to focus on • Legislative changes to make the
other taxes: in particular, estate and gift use of grantor retained annuity trusts, a
taxes, which can seriously impact any popular gift and estate planning tech-
business but are often overlooked. nique, were not made as expected earlier
Uncertainty and complication exists this year, leaving this planning option
in the estate and gift tax as well. However, available for now with advantageously
focusing on the almost as uncertain and low interest rates.
much more often overlooked aspects of • Extremely low interest rates, per-
gift and estate tax exposure provides the haps the lowest taxpayers will see, pro-
opportunity for businesses to address vide numerous gift and estate tax plan-
their overall tax position more directly. ning opportunities, from refinancing
Here are some examples of estate and gift intra family notes to low interest sales to
tax issues to consider now: family trusts.
• No generation-skipping transfer Gift and estate tax exposure can
tax technically exists under 2010 law. often create more risk for businesses
As a result, a taxpayer cannot allocate a than income tax, and such exposure is
generation-skipping transfer tax exemp- often put on the backburner by taxpay-
Michigan Businesses
Seeing Signs of Growth
Lansing – While the economy annual Future Business Index study, com-
remains tough throughout the Great missioned by Lansing-based Accident
Lakes State, a growing number of Fund Insurance Company of America and
Michigan’s small- and mid-sized busi- conducted by EPIC’s MRA in October
nesses are feeling better about their 2010. A total of 600 Michigan business
long-term future as they start to see owners, operators, officers and managers
signs of growth. Additionally, business- were interviewed for this survey.
es continue to report difficulty in finding This year’s survey yielded some
qualified applicants to fill the small but positive results despite the lingering
steadily rising number of new jobs. sluggish economic conditions.
The findings come from the semi- Continued on page 10
6
Finance/Legal/Accounting/Insurance Briefs
Grand Rapids – Echelbarger, Detroit – The U.S. Department of West Michigan – Ashley Potts was Ionia – Independent Bank is working
Himebaugh, Tamm & Co. PC, Housing and Urban Development appointed to business development with Freddie Mac for a second year in
announced the promotion of Certified announced the selection of Antonio manager for West Michigan Tax in the an effort to expand outreach and educa-
QuickBooks ProAdvisor, Marti A. Den Riley regional administrator for six Grand Rapids Office of BDO and has had tion to potential homeowners.
Uyl, to QuickBooks Practice Leader. Midwestern states including Illinois, exposure to large C-Corporations, pass-
Indiana, Ohio, Michigan, Wisconsin and through entities, as well as experience in Ann Arbor – Detroit-based business law
Grand Rapids – The following 17 attor- Minnesota. the Family Wealth Department. firm Honigman Miller Schwartz and
neys from Smith Haughey Rice & Cohn LLP and Ann Arbor-based China
Roegge have been selected to be includ- Fremont – Fremont Insurance Grand Rapids – Echelbarger, Bridge LLC announced a collaborative
ed in the 2010 Michigan Super Lawyers announced several new professional Himebaugh, Tamm & Co. PC business alliance that enhances the
listing: Dale L. Hebert, Edward R. additions: Todd Vanocker has been announced that in-charge accountant scope and depth of services for interna-
Stein, Charles F. Behler, Thomas F. hired as a property staff adjuster. Brenda K. Pavlak, CPA has been elect- tional business clients of both firms.
Blackwell, Patrick F. Geary, William Jennifer Timmer joins the company as a ed to serve on the board of directors for
W. Jack, Jr., E. Thomas McCarthy, Jr., customer service representative along Family Hope Foundation. Columbus, OH – Huntington is the fifth-
Craig S. Neckers, Craig R. Noland, with Katie Dauser who has joined as a largest small business lender in the coun-
John C. O’Loughlin, John R. Oostema, PIP/worker compensation staff adjuster. Holland – Waddell & Reed announced try in number of loans, as reported by the
L. Roland Roegge, Thomas R. Tasker Christina McNitt has also been hired to that Bryce Borgman has joined the firm U.S. Small Business Administration, up
and George F. Bearup. In addition, three Fremont’s Policy Services area. as a financial advisor in the Holland two spots from 2009. According to the
Smith Haughey attorneys have been area. Andrew Bopra, Nate Trathen and SBA, Huntington made 1,312 loans for a
selected to be included in the “Rising Grand Rapids – Varnum trial attorney Paul Mundt have qualified for the firm’s total of $213,136,920 million during
Stars” category of Michigan Super Ray Littleton has been appointed to the Career Development Conference. In other SBA’s fiscal year that ended on Sept. 30,
Lawyers: Adil A. Daudi, Steven K. board of directors for Legal Aid of company news, Edward J. Postma Jr., 2010, a 32 percent increase in number of
Stawski and Scott D. Harvey. Western Michigan. CFP®, CMFC®, AWMA, recently was loans and a 51 percent increase in dollar
invited to attend Waddell & Reed, Inc.’s amount over 2009.
Fremont – Fremont Michigan Grandville – Berends Hendricks Stuit 2010 Top Advisors’ Forum.
InsuraCorp, Inc. would like to remind Insurance Agency, Inc. announced the Lansing - Attorney Kate Fetkenhier has
drivers of the increased risk of a deer-car addition of a new shareholder, Pat Bloomfield Hills – Professional joined the Gallagher Law Firm and will
collision that accompanies this annual Dalton, HIA, RHU, CBC. Dalton also Resolution Experts of Michigan focus on litigation involving mortgage
outdoor tradition. Deer-related wrecks serves on the Visser Family YMCA announced that six of its members were and oil and gas disputes.
were up nearly six percent last year. board of managers. named to the distinguished “2010
Michigan Super Lawyers” list by Grandville – Berends Hendricks Stuit
“Michigan Super Lawyers” publica- Insurance Agency, Inc. announced the
Michigan Businesses tion. Honorees include: F. Peter Blake,
Richard A. Bone, Gene J. Esshaki, Paul
addition of: Ted Kuzma - business
development manger; Amy Jo Klapmust
Roofing - Metal
Buist Sheet Metal Company
Wexford County Historical Society Carnegie
Library Museum
Low Voltage
SecurAlarm Systems
Van Andel Institute
19
ABC Western Michigan Chapter
2009 CONSTRUCTION AWARD WINNERS
HVAC
Northwest Kent Alternative Energy
Caledonia Paris Ridge Elementary School Windemuller Electric
Stoney Corners Wind Farm
Process Piping
Allied Mechanical Fire Protection
Donald K. Shine Water Treatment Plant 1B Brigade Fire
JCI Southview
Mechanical
Allied Mechanical
Haworth, Inc. Educational Construction
Owen-Ames-Kimball
Finish Flooring New Community Based Learning Center
Ritsema Associates
Van Andel Institute Phase II
Governmental Construction
Owen-Ames-Kimball
Ottawa County Courthouse Q & A With Exxel
Institutional Construction
Engineering
"I have a map I received at the clos- • Field boundary measurements com-
Owen-Ames-Kimball ing when I purchased my land and home, pared with legal description of record.
Van Andel Institute, Phase II but I can’t find my property corners. • Easements of record plotted on map
Why? I’m sure that’s what I paid for." if title commitment was furnished to the
surveyor.
- Phil, from Gaines Township A mortgage company may accept a
Historical Renovation mortgage report; but as you have found,
Dear Phil, it is not as complete or accurate as a
Lakewood Construction property owner may want. A mortgage
Hope College - Graves Hall When I review a survey map, I look report is not recommended for urban,
for clues that a client might have a commercial or industrial real estate or
“mortgage report”: when installing fences because the
Got
Finishing Technologies, a steady As with all industries, trends are
increase in demand and the size of their everywhere, and as we all know, "green"
customer base prompted the company to is in. Grand Rapids-based industrial