November, 2009

Message from the CEO

In mid-October, Northbridge had the opportunity to be involved in the Canadian Manufacturing Technology Show (CMTS). The CMTS is a four-day event that happens every two years, bringing together manufacturers and distributors in numerous manufacturing fields, including metal forming, tooling, factory automation and more.

It is always so exciting to see the way Canadian manufacturing is constantly changing and improving, and how we are working to stay competitive with each other and in the global market. The new innovations that companies are constantly coming up with are all fascinating, whether they are in robotics, wind power, metals or plastics.

Both the recent recession and the recent push on "green" practices and products have forced us to look more seriously at the innovation of products and processes, and from what we saw at the CMTS, Canadian manufacturers have embraced that challenge head-on.

As our economy is still in recovery from the recent recession, we need to continue to be on the lookout for how we can help our businesses get over these past troubling times and how we can help prevent our businesses from suffering to the same extent in the future. Innovation is the key; thankfully the CRA wants our Canadian businesses to succeed as much as we do, and recognizes that investing in Canadian innovations is what keeps employment up, keeps Canada competitive in the global marketplace, and keeps economic growth on the rise.

The CRA is dedicated to helping Canadian businesses improve their technology and increase their presence in the global economy through the use of the SR&ED program, and Northbridge is dedicated to helping your company maximize what you receive from the program for your innovations. Through our relationships with you, we know that Canadian manufacturing is constantly changing, and we look forward to where you are headed with us.

Best Regards,




Sol Algranti
President & CEO
Northbridge Consultants

Calendar of Events - November, 2009

Employee Spotlight: Jeffrey Looi

Position

Account Manager

Experience in Industry

Experience serving the mining industry in maintenance as well as automation/robotics field to replace legacy Nickel refining process and enhance employee safety.

Educational Background

Mechatronics diploma & Mechanical Engineering degree.

Hobbies & Interests

Jeff’s number one hobby is fishing as he loves the outdoors and being at the beach. He enjoys listening to music & prefers going to theatrical plays than to the movies. His interests are in cooking (he enjoys good meals) and being around children.

Biggest Non-work-related Accomplishment

Jeff keeps these two accomplishments on the same pedestal, as they have brought a great sense of reward to his life:

Jeff was a facilitator for an underprivileged Christmas event, and is currently a facilitator for the Youth Community Leaders (YCL) project through the YMCA, helping kids labeled as “trouble makers” to make a difference and find purpose in the community of Sudbury. As a facilitator of his team, he encourages the kids to share their ideas and helps the organization to find the funding for their projects to go through. The YCL project has been recognized by the mayor of Sudbury and the project has received proclamation.

Northbridge News & Events

Vancouver 2010

Susan Tantalo-Sinha, the wife of Ajay Sinha (Northbridge’s V.P. of Operations) is getting a second chance at a once in a lifetime opportunity to carry the Olympic torch in the National Relay. Susan first carried the torch in 1988 while attending St Lawrence High School in Cornwall Ontario. Not only is it remarkable that she will be carrying the torch for the second time but also that she will be doing so while she is 8 months pregnant with their second child. You can see this historic event happen on December 16 along Simcoe St. in Oshawa.

Lunch & Learn

Northbridge Consultants will be holding a Lunch & Learn seminar at the Hamilton Chamber of Commerce, at 555 Bay St. N. on Thursday November 26. We encourage all companies to attend to learn more about Northbridge and how the SR&ED program could be beneficial to their business growth. For more information and registration please go to www.northbridgeconsultants.com and click on “seminars” located on the lower right hand side of the page.

SR&ED Program can be Vital for Competitiveness!

The Need for SR&ED

Participation within the SR&ED program is a vital activity for nearly any company wishing to remain competitive. The Scientific Research and Experimental Development Tax Credit Program (SR&ED) can provide many types of companies with up to 44.1% in Ontario* of all investment costs allocated to technological development and research.

A recent study held by the Canada Revenue Agency (CRA), the body responsible for administrating the SR&ED program, showed that only 50% of eligible manufacturers filed SR&ED claims! Why are these companies not filing for SR&ED tax credits?

A recent survey conducted by Northbridge Consultants has revealed that many manufacturing companies have a tendency to significantly under-report their SR&ED activities. Why are these companies filing for amounts far below what they deserve?

Not Receiving what you Should?

The reasons are multi-faceted, and often involve:

• A misunderstanding of complex SR&ED program guidelines and terminology
• Difficulties interpreting and applying SR&ED guidelines to the substantial ‘grey area’ of eligible projects
• Insufficient resources and assistance to make the claim a worthwhile experience

The Value of Research

When it comes to filing for SR&ED, it is critical to have a thorough knowledge of the program. Any weaknesses in the claim process typically results in losses of tens, or hundreds, of thousands of dollars of potential funding from the SR&ED program.

To ensure that your company is achieving its maximum benefit from the SR&ED program, you must allot considerable time for your employees to gain thorough knowledge of the program. Otherwise, eligible SR&ED activities will be omitted from the claim, and your company will incur lost-opportunity costs.

Maximize Your SR&ED Claim

Many companies chose to contract external consultants who are able to deliver services capable of significantly increasing the SR&ED funding received. However, you must research your options carefully to ensure that those who you contract will genuinely benefit your business.

The ability to leverage experience with technological and financial knowledge is paramount. Equally important is a proven track record. These criteria often come at a cost since consultant fees can reach as high as 50% of your return. However, in certain circumstances, a higher investment in an established consulting firm can easily be offset by the larger claim amounts (and subsequent ITC and/or cash refunds) the consultants will generate on your behalf.

Northbridge takes pride in maintaining an unmatched level of customer service to our clients. Our account managers are evaluated based on client feedback - please complete our survey to let us know if Northbridge Consultants met or exceeded your expectations, as well as how we can improve our service to you.

Although we endeavor to ensure timely and accurate information throughout this newsletter, it is not intended to be a definitive analysis of legislation cited, or a substitute for professional advice. Readers are encouraged to seek professional advice when attempting to relate their specific situations to information disclosed within.