Productivity Pays Off For Caterpillar

Maker Of Heavy Equipment Attributes Its Success To Steady Growth In Worker Productivity

(CBS)  Caterpillar is part of the American landscape. It's the world's No. 1 maaker of tractors and earth-moving machines, CBS News correspondent Trish Regan reports.

When Panama wants to expand its canal, it turns to Caterpillar. When China wants to mine nickel, it turns to Caterpillar again.

CEO Jim Owens says the company exports $9 billion worth of machines oversea every year. He says it surprises him that Americans think manufacturing is losing out to other countries.

We're not. Last year, America produced $1.79 trillion worth of goods, almost twice as much as second-place Japan.

The key to success in factories like Caterpillar comes down to one thing: A steady growth in worker productivity. In other words, it's not your grandparents' assembly line.

Every year for the last decade, American workers have increased manufacturing productivity by more than 4 percent ... because of employees like Jack Morgenstern. He figured out how to take minutes off parts distribution on Caterpillar's engine line in Peoria, Ill.

"I would say there's at least 25 to 30 parts at each assembly station. So my idea was to coordinate them in the kits where the first assembler would not have to reach for anything. They could take them off the top," Morgenstern explains.

Those saved minutes added up to two more engines a day.

"We're more competitive with our manufacturing in the United States than we were 15 or 20 years ago because we've broken through a lot of those hurdles where people had tightly defined jobs and didn't work together," Owens says.

Caterpillar's products are the No. 1 or No. 2 best sellers on every continent, proving that "Made in the USA" a very valuable label.

[feelfree1]

Is Caterpillar still selling their tractors to the Israelis?

The Israelis have used these tractors to murder peace activists, and to demolish the homes of innocent people.

Unless they examine their customer base, and speak out when their equipment is used for these kinds of terrorist operations, I would never buy anything from this company.

[strong143]

Caterpillar is a wonderful company who is extremely socially responsible. Like other businesses, they sell the product but can't necessarily dictate how it's used. Caterpillar makes a significant POSITIVE impact on our world.

[itgranny]

FeelFree1,

??? From your way of thinking, GM should not sell cars to drunks because sometimes these drunks get into the car and kill people. It's not the car, it's the operator!

The good that these tractors do (feeding people, clearing fields, etc.) far outweighs anything that irresponsible Israelis do. Put the blame where it belongs.

[cdlkbwolf]

The Israelis have every right to use the equipment they purchased for whatever use they want. By the way, I think tearing down homes of terroists is a good use.

[random_radar]

If we stop Israelis from buying bulldozers, then:

We should stop farmers from selling food because some people get fat.

We should outlaw swimming pools because some children drown.

We should close all the hospitals because sometimes doctors malpractice.

[luv_cat-2009]

I completely agree with comments from strong143, itgrammy, and cdlkbwolf. I don't see people protesting manufacturers of products that can be used to shoot and kill people or make homemade bombs or drugs like crystal meth. Maybe we should have the military and our local police departments stop buying guns and ammunition until the manufacturers speak out against gang bangers, terrorists, emotionally challenged kids, and robbers from killing.

Fact: Caterpillar machines and generators were one of the first onsite at Ground Zero to help recover victims of 9/11 and provide power. Fact: CAT machines were used nonstop to support the massive clean up of Katrina and the tsunami aftermath in Asia. Fact: CAT machines, generators, and engines are also used to build schools, churches, transportation infrastructure, and mine minerals and metals, provide power, transport imports and exports worldwide via truck or ship.

Feelfree1, I would guess - CAT equipment played a part in building the place you call "home", the grocery store that feeds you and your family, the roads you take to go anywhere you need to. I bet they also played a part mining the metals used for your eating utensils! Go on - protest Caterpillar because the company is so evil.

I am a beaming proud employee of Caterpillar. It is a US company based on values, social responsibility, and integrity. And, oh, by the way - the men and women of Caterpillar worldwide are committed to making the world a better place to live.

[feelfree1]

luv_cat,

Re: "It is a US company based on values, social responsibility, and integrity."

You must be joking?

[my__view]

That is a good rebuttal feelfree1, you almost convinced me, if you would have used %u201Cbecause I told you so,%u201D I think I would agree with you. Unfortunately you didn%u2019t, and I agree with the statements luv_cat posted. Caterpillar manufactures natural gas engines that are installed in power plants, as well as other products that produce electricity. Caterpillar is second only to General Electric in manufacturing of energy related products. Feel free, feelfree1 (pun intended), to protest Caterpillar, you have the right. I would suggest starting with not using electricity because this would prevent you from using a computer and posting comments on websites.

[feelfree1]

Re: "Caterpillar is a wonderful company who is extremely socially responsible. Like other businesses, they sell the product but can't necessarily dictate how it's used."

I'm sure that Kim Jong Il will be relieved to know this, if he decides to sell a couple of his nukes to the highest bidder.

Re: "Caterpillar makes a significant POSITIVE impact on our world."

Not unlike an asteroid.

[feelfree1]

Re: "The Israelis have every right to use the equipment they purchased for whatever use they want."

Does the same go for people who "purchase" jumbo-jets? Cluster bombs? Nukes?

[feelfree1]

Re: "It is a US company based on values (maximizing profits and minimizing wages), social responsibility (depletion of scarce resources at an unsustainable rate, destroying rainforest, polluting our air/water, endangering employees by exposing them to harmful solvents/chemicals without adequate protection), and integrity (selling equipment to people with a known history of using the equipment to kill other innocent people, all just to make an easy buck)."

Nice going.

I never wrote anything here about protesting anything. You Caterpillar folks are a bit defensive, for some reason.

I find it amazing how Feelfree1 can put the problems of the world on a company that does so much good for the world. Cat is focused on the doing the global positives. Meanwhile, you talk bad about everything they do. You should stop hugging the tree and actually do something to help instead of complaining about things. Why dont you try to do even .000000000005% of what Cat does for this world. Before you spew anymore nonsense, please know what you are talking about...

just a FEW
http://cibs.tamu.edu/center/cat.htm
http://www.bymnews.com/news/newsDetails.php?id=513
http://goliath.ecnext.com/comsite5/bin/pdinventory.pl?pdlanding=1&referid=2750&item_id=0199-4201078
http://www.ncwc.edu/News/Archive/2000/000720-05.htm
http://www.aednet.org/aednews/index_full_story.cfm?id=10916031
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/11-22-2006/0004479376&EDATE=

[feelfree1]

tms217,

Re: "I find it amazing how Feelfree1 can put the problems of the world on a company that does so much good for the world. Cat is focused on the doing the global positives."

That is not the case. I offered valid criticism of Caterpillar for supplying equipment to the Israelis, which have a known history of intentionally terrorizing and murdering innocent people, even Americans, with said equipment.

Since then, the Caterpillar bobble-heads decided to chime in and claim that Caterpillar is some kind of bennevolent organization, doing everything from feeding the world to addressing social issues.

You guys are living in a Caterpillar fantasy land. I am simply giving you a reality check.

Catterpillar has one single overall objective: maximizing profits for share-holders. If you think that the Board gives a fig about the well being of its workers, social issues, or the environment, you are fooling yourselves.

[karateman39]

Companies are not required to police how people who buy their equipment and products use them. It is up to the company to decide who to sell to and who not to. It is ridiculous to say that cat is responsible for what Israel is doign with thier machines. It's akin to holdin car companies responsible for drunk drivers and gun manufacturers responsible for being shot in a robbery. It's not their problem.

I'm not claiming Caterpillar should be put on a pedestal but they do a lot of good things for a lot of people.

[feelfree1]

karateman39,

Corporations have a responsibility to include ALL of the costs associated with their products in the sales price of that product (environmental, social, legal, military, etc.).

If they fail to do this, which is usually the case, those costs are spread around to the public at large, and that is not equitable. It is also not "free-market-capitalism". It amounts to Corporate welfare, disproportionately placed on the backs of the less fortunate.

[feelfree1]

karateman39,

Re: "Companies are not required to police how people who buy their equipment and products use them."

True, but they should consider these issues, and if they don't, they are a burden on society.

Can't any of the Caterpillar people concede that they are not proud that their equipment is being used to terrorize and murder innocent people, in some cases?

[my__view]

More people are killed in the Middle East from car bombs than Caterpillar bulldozers. Why not hold car companies liable for selling vehicles to terrorists who blow up innocent people; terrorists who are "intentionally terrorizing and murdering innocent people, even Americans". I read on this site http://www.catdestroyshomes.org/article.php?id=101 that Cat sells the D9's to the U.S. Government, who then sells it to the Israeli government as well as other governments, and the Israeli government installs armor on the bulldozers. Cat sells bulldozers to move and grade the earth; Caterpillar cannot prevent the new owner of the machine, who received it setup for regular earthmoving tasks, from armoring and modifying it. Can auto companies foresee terrorists using a vehicle designed for transportation as a bomb to kill people? No. If Cat intended to sell these machines to demolish homes in war zones they would armor the machine and sell it with the features the Israeli government desires. Cat does not, just as auto companies do not sell vehicles with bombs.

[my__view]

Definitions of protest:
1: a solemn declaration of opinion and usually of dissent
2: the act of objecting or a gesture of disapproval
3: a complaint, objection, or display of unwillingness usually to an idea or a course of action

Does Feelfree1%u2019s comments match these definitions?

Now:

"You Caterpillar folks are a bit defensive, for some reason."

You are attacking people who believe in Cat, just as you believe in your issues. These people are defending what they believe in, as are you, and you posted several responses to the people defending Cat. You say these people are defensive, they are defending the name of the corporation they work for, a name you are trying to smear. When your views and name were opposed you reacted defending yourself and your views. You too are defensive for what you believe in.