Hidden Tax Savings: How Cost Segregation Powers Industrial Manufacturing Growth

Cost segregation continues to present an opportunity for industrial manufacturers to unlock meaningful tax savings, particularly as recent legislation enhances the ability to accelerate depreciation and expense facility investments. With expanded incentives such as 100% bonus depreciation and new provisions like Qualified Production Property (QPP), many manufacturers are reevaluating how these changes impact cash flow, capital investment strategies and long-term growth planning.

Insights for Industrial Manufacturing Leaders

On this episode of the Industrial Manufacturing Podcast, Luis Reyes, Industrial Manufacturing and Consumer Goods Leader, is joined by Martin Karamon, Leader of the Tax Credits & Incentives Advisory practice, and Daniel Hurtado, Director, who specifically focuses on cost segregation and fixed asset analysis to explore how manufacturers can take advantage of these opportunities. This episode breaks down complex tax concepts into practical insights, helping manufacturers better understand how to optimize facility investments and capture available incentives.

Tune in to learn more about:

• An overview of cost segregation studies and how they apply to manufacturing facilities
• How accelerated depreciation can improve cash flow and reduce tax liability
• Why manufacturing properties are uniquely positioned to benefit from cost segregation
• The impact of recent tax legislation, including 100% bonus depreciation and QPP
• How cost segregation supports reinvestment, expansion and operational growth
• The relationship between cost segregation and other incentives, including R&D tax credits
• Opportunities to capture missed deductions through lookback studies
• Key timing considerations for implementing a cost segregation strategy

Related Thought Leadership

• Article: What Is a Cost Segregation Study and How Does It Work? - https://www.cbh.com/insights/articles/what-is-cost-segregation-how-does-it-work/
• Webinar Recording: Strategic Energy Incentives Update: Section 179D, Cost Segregation and Tax Credits - https://www.cbh.com/insights/webinar-recordings/strategic-energy-incentives-update-recording/
• Article: IRS Notice 2026-16: Interim Guidance on Qualified Production Property Depreciation - https://www.cbh.com/insights/articles/notice-2026-16-irs-issues-interim-guidance-on-qpp-depreciation/

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Tariffs continue to create uncertainty for industrial manufacturers as court rulings, trade investigations and refund developments reshape the global trade environment. Recent changes related to the International Emergency Economic Powers Act (IEEPA) tariffs, refund eligibility and enforcement activity have left many manufacturers questioning how these developments impact their tax position, financial reporting, and long‑term planning.

On this episode of the Industrial Manufacturing Podcast, Luis Reyes, Industrial Manufacturing and Consumer Goods Leader, is joined by Nelson Yates, International Tax Leader, to discuss the current tariff landscape and what manufacturers should be considering now. Together, they provide practical insight into refunds, ongoing tariff exposure and strategies manufacturers can adopt as tariffs remain a persistent business reality.

This conversation includes:

• An overview of the current tariff landscape, including recent court rulings, investigations and refund developments
• Practical considerations for manufacturers evaluating IEEPA tariff refunds
• Key tax, accounting and financial implications associated with potential refunds
• Best practices manufacturers can implement to manage ongoing and future tariffs amid regulatory change
• How Cherry Bekaert helps manufacturers navigate tariff complexity and risk

Related insights:

• U.S. CBP Files Update on IEEPA Tariff Refunds | Cherry Bekaert
• Amended IEEPA Order: Steps to Take for Final Liquidated Entries | Cherry Bekaert

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In the final episode of the Working Capital Optimization series, hosts Mike Piotrowski and Corey York explain how cash management acts as a strategic lens for CFOs. They explain how the cash conversion cycle (triple C) reveals where cash is trapped in a business and can help unlock significant liquidity without raising equity, taking on debt or cutting headcount.

Through practical examples, benchmarking and a five-step framework, the episode guides listeners on diagnosing cash flow bottlenecks and implementing cross-functional improvements for lasting financial agility

Listen to learn more about:

• What the cash conversion cycle is and why it matters
• How triple C reveals where cash is trapped across receivables, inventory, and payables
• Benchmarking triple C performance
• Trade-offs and mitigation strategies for improving accounts receivable (AR), inventory and payables
• How to operationalize triple C across the organization for competitive advantage

Related Insights

• Article: Working Capital Strategies: 7 Steps To Improve Cash Flow in Manufacturing Businesses
• Podcast: Industrial Manufacturing and Consumer Goods Podcast: Working Capital Optimization Explained

In this episode of the Industrial Manufacturing and Consumer Goods podcast, host Corey York, along with finance transformation specialist Mike Piotrowski, explores accounts payable (AP) optimization, a critical yet often overlooked driver of working capital and business health.

They discuss why AP is more than just paying bills, as well as the risks of inefficient processes and practical strategies to transform AP from a cost center into a strategic advantage. Listeners will gain actionable insights to improve cash flow, strengthen supplier relationships and leverage technology for smarter operations.

This is the fourth episode in a five-part series on optimizing working capital. Stay tuned for more actionable insights!

Listen to learn more about:

• The role of accounts payable in working capital
• Common red flags in AP processes
• Four key areas for AP optimization
• How to balance strategic AP practices with maintaining strong supplier relationships
• Industry benchmarks and how they guide achievable AP performance targets

POCs
Mike Piotrowski, Senior Manager, CFO Advisory
Corey York, Senior Manager, CFO Advisory

Related Insights:

• Article: Working Capital Strategies: 7 Steps To Improve Cash Flow in Manufacturing Businesses
• Podcast: Industrial Manufacturing and Consumer Goods Podcast: Working Capital Optimization Explained

In this episode of the Industrial Manufacturing and Consumer Goods Podcast, Mike Piotrowski and Corey York explore accounts receivable (AR) optimization, a critical component for improving cash flow and overall business health. Together they discuss why AR is more than just collecting payments, how to identify red flags and practical strategies to unlock trapped cash without damaging customer relationships.

This is the third episode in a five-part series on optimizing working capital. Stay tuned for more actionable insights!

Listen to learn more about:

• The role of accounts receivable in working capital
• Key indicators of AR issues
• Four major levers for AR optimization
• How AR optimization impacts customer relationships and why collaboration matters
• Benchmarks and data sources for measuring AR performance
• Strategic benefits of AR

POCs
Mike Piotrowski, Senior Manager, CFO Advisory
Corey York, Senior Manager, CFO Advisory

Related Insights:

• Article: Working Capital Strategies: 7 Steps To Improve Cash Flow— in Manufacturing Businesses
• Podcast: Industrial Manufacturing and Consumer Goods Podcast: Working Capital Optimization Explained

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In this episode of the Industrial Manufacturing and Consumer Goods Podcast, Mike Piotrowski and Corey York dive deep into inventory optimization — one of the most powerful, yet often overlooked, levers in working capital management.

They explore why inventory sits at the intersection of finance, operations and customer service, and how optimizing it can free up cash, reduce costs and improve customer satisfaction. This episode also covers warning signs of poor inventory management, practical steps for improvement and real-world examples of successful inventory optimization.

This is the second episode in a five-part series on optimizing working capital. Stay tuned for more actionable insights!

Listen to learn more about:

• The critical role of inventory in working capital optimization
• Warning signs of inventory management problems
• Four key components for inventory improvement: Demand forecasting, stock keeping unit (SKU) rationalization, reorder points/safety stock and purchasing alignment
• Common challenges across industries and how to address them
• Practical steps to start optimizing inventory today
• The future of inventory management, including technology, data and process improvements

POCs
Mike Piotrowski, Senior Manager, CFO Advisory
Corey York, Senior Manager, CFO Advisory

Related Insights:

• Article: Working Capital Strategies: 7 Steps To Improve Cash Flow in Manufacturing Businesses
• Podcast: Industrial Manufacturing and Consumer Goods Podcast: Working Capital Optimization Explained

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In this episode of the Industrial Manufacturing and Consumer Goods Podcast, Michael Piotrowski and Corey York dive into the fundamentals of working capital optimization and its critical role in business health and agility.

They discuss how optimizing working capital enables companies to meet obligations and seize growth opportunities. This episode also covers an overview of the essential components of working capital — inventory, accounts receivable and accounts payable — and introduces key metrics like the current ratio, quick ratio and cash conversion cycle.

This is the first episode in a five-part series on working capital optimization. Stay tuned to learn more.

Listen to learn more about:

• The definition of working capital
• The components of working capital
• Key metrics for working capital
• Warning signs of poor working capital management
• The benefits of working capital optimization

Series

POCs

Michael Piotrowski, Senior Manager, CFO Advisory

Corey York, Senior Manager, CFO Advisory

Related Insights:

Article | Working Capital Strategies: 7 Steps To Improve Cash Flow in Manufacturing Businesses

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The Internal Revenue Service (IRS) released Notice 2023-38, which provides more details around domestic content requirements for taxpayers who qualify for bonus energy credit incentives. The additional tax credits are associated with investments in and the production of clean energy under Sections 45, 45Y, 48 and 48E. Dependent on the facilities and equipment used to make clean energy, the domestic content rules are fulfilled when a taxpayer verifies that a qualified facility meets two specific requirements.

On this episode of the Industrial Manufacturing Podcast, Jason Hodell, Industrial Manufacturing Leader, and Ron Wainwright, Energy Tax Credits & Incentives Leader, discuss key Inflation Reduction Act of 2022 (IRA) provisions that will help clients maximize their tax credits.

This conversation includes:

• Energy tax credits under the IRA
• IRA’s new credits and bonus credits
• Increase in tax credit amounts for domestic content
• Whatto look for in an energy credit provider
• New requirements to qualify for bonus energy credit incentives

Related Guidance

• Take Advantage of New Section 45L Tax Credit Opportunities Under IRA
• Form 7205: What A&E Firms Need To Know To Claim the Section 179D Tax Deduction
• Energy Savings Revolution – Section 179D for Commercial Buildings
• Notice 2022-61: Initial Guidance on Prevailing Wage and Apprenticeship Requirements for IRA Clean Energy Tax Credits

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