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Good economy, tax reform benefiting local food and beverage sector

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The growing economy and tax reform have benefited companies in the local food and beverage sector, according to a recent survey by Garden City accounting firm Margolin, Winer & Evens.

The firm interviewed 65 food and beverage companies at Long Island Business News’ 2018 FoodBizLI Event, a trade show held in Woodbury last week.

Nearly half – 48 percent – reported increased revenue growth this year. About 51 percent said their revenue stayed the same, while only one company of the 65 reported a decline in revenue.

“The response to this question confirms what our experience has been with working with clients in the food and beverage industry,” said Lance Christensen, a partner at Margolin, Winer & Evens. “Tax reform has had a significant impact on the economy. Corporate earnings have been strong since the tax rate was cut, and I think tax reform has had an impact on consumer confidence.”

Two Big Tax Changes Will Affect Food-and-Beverage Businesses

When asked which parts of tax reform they thought would have the greatest impact on their business, the top responses were “Provisions for immediate expensing of equipment purchases” and “Reduction in income taxes,” which were cited by 34 percent each.

Based on the positive responses, “we will see more investing and hiring in the industry,” Christensen predicted.

However, a strong economy makes it harder for companies to recruit workers. When respondents were asked about the biggest challenges for their business, the top answer – cited by 37 percent – was “Hiring and retaining top talent.”

“The economy is doing well, and that’s terrific, but as companies are looking to grow and hire the best people, they’re all competing for top talent,” Christensen said.

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