Research and development

CASE STUDY

Source Advisors

TOOL & DIE

HIGHLIGHTS

  • DIE DEVELOPMENT AND FABRICATION
  • MECHANICAL ENGINEERING
  • 3D MODELING, DESIGN, AND ANALYSIS
  • OVER $90,000 IN TOTAL ANNUAL NET
    BENEFIT

With over 40 years of experience, this company has a highly experienced team of designers, engineers, toolmakers and machinists who create dies to produce a variety of parts. The company collaborates with clients, providing the necessary expertise and equipment for designing and building tools and dies while delivering a precise product that is in accordance with customer specifications.

Tool & Die

R&D QUALIFICATION

The R&D activity at this tool and die manufacturer began with initial customer discussions to define requirements and specifications for tooling. Initial reviews included the evaluation of final product designs and often a review of the physical parts themselves. During the early phases of a project, the team analyzed the part and began exploring everything from production materials, to manufacturability. This team included engineering, tool designers, CNC machinists, quality, and other production leaders. This was an iterative process and required many trials, arriving at a product and a process that fulfilled the client requirements.

Next was the development of detailed tooling designs. With 3D computer modeling, the team simulated a wide variety of use cases and determined the manufacturability, heat transfer, fluid flow, electromagnetic potential, strength, 

HIGHLIGHTS

  • DIE DEVELOPMENT AND FABRICATION
  • MECHANICAL ENGINEERING
  • 3D MODELING, DESIGN, AND ANALYSIS
  • OVER $90,000 IN TOTAL ANNUAL NET
    BENEFIT

and structural integrity of a part and tool through the use of finite element analysis. This drove changes in the design until it was finalized.

Once the tooling was designed the team built prototype tooling which started the validation effort. During this process, prototypes and first articles were produced to evaluate the integrity of the tooling. This validation process would inevitably lead to further development and modification of both the final part and tooling designs. This cycle repeats itself until the team had developed a repeatable, reliable and accurate production process and a part that met all of the quality standards set forth in the early stages of development.

RESULTS SPEAK FOR THEMSELVES

This tool and die company made significant investments in their processes and technology in addition to taking a lot of financial risk to become a leader in their industry over their 40 year history. When the company first took the credit in 2014, they generated roughly $1,000,000 in qualified expenses and claimed a $68,000 tax credit. Since then, their research has expanded and now, the company generates roughly $1,400,000 in qualifying research and development expenses entitling them to a credit of roughly $95,000 dollars annually.