BIGGER, BETTER, FASTER: R&D YOUR WAY TO AN INNOVATIVE MANUFACTURING PROCESS
4 Minute Read
The manufacturing industry provides ample opportunity for research and development (otherwise known as R&D). And, while this type of innovation is largely understood to be the beating heart of this sector, never is it more important than when utilised to optimise manufacturing processes specifically.
Whether that means developing swanky new technology that automates certain parts of the manufacturing process, or changing operational processes to meet new budget requirements, making the most of R&D will help ensure the smooth running of your entire facility.
Fantastic, we hear you say – let’s get started! While this enthusiasm for innovation is certainly well placed, for many within the industry, this feeling can quickly be dissolved as soon as budgets are evaluated. In short, R&D costs money – and it is often this cost that stops manufacturers from developing innovative processes.
Fortunately, with the help of R&D tax relief, those working to help their businesses succeed through qualifying projects can claim credits back on their innovative ideas. To help you discover how you could use this to transform your manufacturing processes, we’ve put together a quick guide.
Using new materials
Undoubtedly, developing or acquiring new materials to be used in your manufacturing process will optimise your production line – putting you in good stead to compete with others in the manufacturing field. This could involve creating a new material yourself, or researching different ways to use existing materials available on the market to help streamline your process.
By claiming R&D tax credits back on this type of activity, you’ll be able to invest time and money in this type of investigation without compromising on the quality of your existing production line.
Changing processes inline with new regulations
In manufacturing as with every industry, new rules and regulations imposed by higher powers have the ability to force you to make significant changes to how you operate. Naturally, you’ll need to make sure you’re following all new laws when they come into effect – which can mean making sudden changes to how you work day to day.
Luckily, the time and money spent on making these changes can often be claimed back through R&D tax credits. This means that you’ll be able to claim back on the extra hours staff have worked changing processes in line with new guidance.
By incorporating automated systems in your manufacturing processes, not only will you be able to save time, but you’ll be able to save money on manual labour costs. After all, there’s arguably nothing better than changing or creating a process that’s designed to save (or even make!) you some money.
Using the relevant tax relief, you’ll be able to spend the time and effort needed developing such systems. Not only will this improve your finances internally, but potentially provide you with the opportunity to sell your findings on to other manufacturing facilities and increase your return on investment externally, too.
Developing cost-effective operational processes
Streamlining how your business operates internally is bound to save you time and, potentially, money. It goes without saying, however, that this type of research itself requires time – this being something that you might not have a lot to spare.
Through claiming back R&D tax credits, you have an opportunity to cut out unnecessary communications and establish easy and clear operational processes – meaning man-power can be spent elsewhere in the business and contribute to cutting overall costs.
To find out whether your manufacturing project is eligible, contact Lumo now and take the first step towards creating innovative new processes today.