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CAMotion Featured in AJC News Article
Obama plan a great opportunity if done right, says CEO
By David Markiewicz
The Atlanta Journal-Constitution
Original AJC Article
His company, CAMotion, is looking to get bigger; and chief executive Alex Furth sees President Barack Obama's proposal of a 100-percent write-off on new capital investments through next year as a means to fuel that growth.
"In our line of business, in our current state, it would be a definite help and allow us to achieve the goals we set out for this year and next year," he said.
CAMotion, headquartered near Georgia Tech in Atlanta, is a manufacturer of industrial robots that pick up and move around products of various sizes and weights. They sell for up to $300,000 each. The company's prospects are solid enough that it hopes to one day become the nation's largest robotics business.
The effect of the tax break would be to reduce the cost of increasing production -- a key to a growing company like CAMotion. While sales haven't increased in the last year, he said, customer interest is up significantly, indicating a market revival may be coming.
Customer demand drives a company's investment in capital goods and, "We have a pretty aggressive growth plan," Furth said, "to double or triple our size in the next couple of years."
Furth said many companies, including his potential customers, "have very good cash positions," but they are uncertain about what to do because of the economy. As a result, they are sitting on capital, wondering what to do with it.
The 100-percent write-off could, he said, could spur them to buy.
The Obama plan isn't without potential problems, however, even beyond the political reality that Congress will weigh in on it..
The proposal, Furth said, needs to be clear and it needs to be implemented quickly.
Now that the "cat is out of the bag," he said, businesses would likely hold off on any investment pending the proposal's fate in Washington.
Businesses, however, won't want to rush to make any major investments, he added.
"If what we're trying to promote is sustainable, smart investment," he said, "sometimes it doesn't get done overnight. You need time to implement."
Said Furth, "It's a great opportunity-- if it's done properly."