US manufacturers to enjoy cash savings, says Grant Thornton

Practice leader points to expected benefits from new taxation law.

Manufacturers in the US are said to be poised for significant cash savings as a result of the One Big Beautiful Bill Act (OBBBA).

"The immediate impact of the OBBBA is financial," professional services network Grant Thornton noted in a new report.

"Accelerated depreciation and expanded deductions are generating significant cash tax savings, and manufacturers are already exploring how to deploy this newfound liquidity."

Car manufacturers, for instance, can use their tax savings to help transition to smart factories, whilst industrial manufacturers can invest in workforce development and plant modernisation.

According to Grant Thornton Manufacturing Industry Leader Kelly Schindler, her conversations with manufacturers are now "much more exciting" because of the taxation law. She highlighted that manufacturers are incentivised to bring supply chain into the US.

Grant Thornton, meanwhile, pointed out: "With provisions like full expensing for equipment and capital investments, enhanced R&D (research and development) deductions, and favourable interest treatment, manufacturers now have a clear incentive to invest domestically."

Schindler, an audit expert, added that they expect "some expansion, some upskilling of workforce, and again R&D activity coming into play" as a result of OBBBA, which was passed in July.

Mergers and acquisitions in the manufacturing sector are also either being explored or "definitely there," she said.