Build for Scale with Odawara DFM and New Tax Incentives

Odawara employee using CAD software to provide DFM solutions.

The difference between a successful design and a production nightmare often comes down to one critical decision: when you bring in your automation partner.

At Odawara Automation, we have seen for ourselves that manufacturers who work with us early in the design phase save time, reduce costs and bring their products to market faster.

Design for Manufacturing

With over 50 years of experience in electric motor winding automation, our team helps bridge the gap between design engineers and manufacturing engineers.

Modern electromagnetic software and CAD tools are great at helping you design high-performance motors. However, they can not tell you if your design will actually wind correctly, assemble smoothly or run reliably on a production line.

That’s where Odawara’s Design for Manufacturing services come in. We work with you during the development process to ensure your innovative motor designs can actually be produced at scale. Whether you are working with established winding processes or creating something completely new, we help identify what is feasible and what needs to change before you commit to expensive tooling and production equipment.

Your Single-Source Solution

One of the biggest advantages of working with Odawara is the consistency and collaboration you gain from a single, experienced partner. From early design input and process development through equipment design, build and installation, our team stays closely involved to ensure every phase of your project aligns with your production goals.

This continuity means fewer handoffs, smoother integration and faster progress from concept to production.

Recent Tax Changes That Benefit R&D and Equipment Investment

Recent federal tax legislation has introduced changes that may benefit manufacturers investing in research and development. The One Big Beautiful Bill Act includes provisions that could impact how you approach both prototyping and equipment purchases.

Immediate R&D Expense Deduction

Domestic research and development expenses incurred after December 31, 2024, can now be immediately deducted. This includes activities like designing motor prototypes, experimenting with winding techniques and developing new manufacturing processes.

For smaller businesses (with average annual receipts under $31 million), there is also potential to deduct R&D expenses for 2022-2024 retroactively.

When you work with Odawara to develop custom manufacturing processes for your innovative motor designs, those development activities may qualify as deductible R&D expenses.

100% Bonus Depreciation

The legislation also establishes a 100% bonus depreciation on a permanent basis, allowing businesses to fully deduct qualifying equipment purchases in the same year the asset is placed into service.

Here is what this could look like in practice: an Odawara winding system investment can now be fully deducted in year one rather than depreciated over seven years. This provides immediate tax relief and improves cash flow during critical growth phases.

Expanded Section 179 Expensing

For businesses that prefer Section 179 expensing, the limits have been doubled. The expensing limit increased from $1.25M to $2.5M annually and the phase-down threshold raised from $3.13M to $4M.

What This Means for Your Business

These tax provisions create an opportunity when combined with Odawara’s prototyping and development services. You get reduced net cost through immediate tax deductions on both R&D activities and equipment, improved cash flow with tax savings in year one that can be reinvested and long-term planning confidence with permanent provisions.

(Remember to consult with your tax advisor to understand how these changes might apply to your specific situation.) 

Industries We Serve

Our prototyping and development expertise spans automotive, aerospace, medical, industrial and consumer goods/appliances. We bring specialized knowledge of advanced winding technologies, including flyer, needle, segment and hairpin winding. 

Ready to Get Started?

Whether you are creating a new motor design or preparing an existing prototype for production, now is the perfect time to connect with Odawara Automation. Our team will work with you to explore manufacturability options, identify the right winding and assembly approach, and plan a smooth transition from design to production.

Visit odawara.com or contact us today to learn more about how our DFM services can help you accelerate your electric motor development and reduce your costs.

By Odawara Automation

Odawara Automation is an industry-leading designer, manufacturer and integrator of machines that automate complex winding and assembly processes for electric motors. Whether you are looking for a specialty machine or an entire product assembly line, our team of design engineers and assembly technicians are here to provide you with a single-source solution. Our driving principles have always been quality, safety, functionality, and cost-effectiveness.