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Caterpillar CEO Pushing for Infrastructure Program
in What's Up - Construction News and Trends |
on August 17, 2011
Going to bat for the construction industry, Caterpillar Chairman and CEO Doug Oberhelman appeared on CNBC and called for U.S. policymakers to create and fund a strong program to maintain and improve the nation’s transportation infrastructure.
Caterpillar is based in Peoria, Ill., and has many of its key factories in that state. Oberhelman pointed out that the Caterpillar manufacturing facilities in Illinois are currently producing up to 90 percent of their heavy construction or mining vehicles equipment for the foreign markets. But, he said, “We worry about the port structure in the United States, and the basic transportation system as we try to get export goods out of this country or components into this country from our suppliers.”
The deteriorating condition of the nation’s infrastructure can make it difficult to ship Cat products from interior plants to seaports or bring supplies. “It’s every day harder and harder and harder, because we’re clogged, we’re antiquated, we’ve not invested in those” transportation systems,” he said.
Oberhelman noted that competitors are investing in their transportation systems at a faster pace, making U.S. suppliers less competitive in delivering their goods to global markets.
The comments came as President Obama is telling Congress to send him a transportation bill to launch more infrastructure projects and put more people to work.
Oberhelman said investing in infrastructure projects during a recession helps by creating construction jobs in the short run, and the investments pay for themselves within a few years by generating additional commerce.
Oberhelman urged fast action in Washington to pass three pending bilateral free trade agreements with South Korea, Panama and Colombia, saying the agreements could quickly help Caterpillar with some foreign customers.
“Our customers in Colombia incur a $300,000 tariff on our big trucks that go there,” he added. “And guess who wants in there, badly? Our competitors from Japan and China. Those are the only competitors we have in that product line. We want to keep those jobs, and those are jobs right here in Illinois.”

