CAT CEO on economy: Washington lacks honesty

(CBS News) 

NEW YORK - This week, CBS Evening News anchor Scott Pelley is asking some of America's top CEOs how to get the country moving again.

Doug Oberhelman is CEO of Caterpillar, an American powerhouse of manufacturing. CAT builds construction and massive mining equipment.

More about Caterpillar

The company employs a workforce of 132,000 people worldwide, including 59,000 jobs in America, and Oberhelman is building or expanding eight plants right now in the United States. But he has a lot of concerns going forward, especially with Washington. He thinks free trade, a highway bill and education are part of the solution -- and Americans should not vote for candidates who take things off the table.

Dough Oberhelman: I'd have to say today the thing that concerns me and I think every American is where are we going? The uncertainty and the volatility particularly in the last three years I think has heightened everyone's awareness of what can happen.

Scott Pelley: What's missing in Washington?

Oberhelman: Honesty. I don't believe that this situation about our budget is anything new. And it is beyond me that we can't have an open, honest dialogue with our people about what it takes.

Caterpillar says sales growth continued in July

Pelley: What has to happen for job creation to pick up steam in this country?

Oberhelman: We need more action. Part of it is education, which is a little longer term. Part of it is free trade agreements - so that we can continue to sell in a preferred way to our trading partners. Lots of areas around stimulating a highway bill and infrastructure project that we've always used in this country at the depth of a recession.

But in the past when we spend money on infrastructure, it's an investment in our country, we're more competitive as a result and it puts people back to work and about time the job is done - the economy typically has inflated.

WATCH: Caterpillar Tractor Sales Soar

Pelley: But you know what the political climate is, the Republicans in particular in the Congress, are saying no new spending, budget cuts are necessary and no new taxes.

Oberhelman: Any politician that says no tax revenue or zero spending cuts does not deserve reelection. Our hole is so deep in this country with the debt and the debt service, the interest on that debt, before the big expenses come for Social Security and Medicare - for we baby boomers in a few years- that everything has to be on the table.

Pelley: The workforce that you have to have to build your machines is specialized and in many cases highly technical and I wonder whether building these new plants in the United States if you're finding enough workers who have that kind of skill.

Oberhelman: What we find is a lot of the applicants need retraining, they need basic education, maybe they didn't get through high school, there's all kinds of problems.

So we spend a lot of time training and retraining. It's heartbreaking because our education system has failed all of us. And again you go to China, even Mexico, Brazil the education systems are valued - ours are not in this country at K-12 level. It's amazing how that change has transpired in my lifetime.

Pelley: Your message to Washington is what?

Oberhelman: Check the politics at the door. An honest discussion with Americans, tell us how deep the hole is. We're going to have to raise revenues in some form or fashion and we're going to have to cut spending including entitlements of all kind, including the military. We all know this. Lets get on with it.

[TheRealMeo]

What Mr. Oberhelman says about our basic education system is true.
While working for a US company constructing facilities in Mexico I saw the tiny cement block cubes crowded togeather and worse that most people lived in, but each morning all the kids came out to board busses to school and they were always neatly dressed and seemed ready to learn. They obviously put a lot of emphasis on this. We are so lazy here. We need to get busy!

[VicenteRodolfo]

There is no honesty in Washington. It is the TEA party faction who is dead-set to do away with all social programs and education as we know it today. Again, everybody piles on president Obama. This is so unjustified as he cannot legislate jobs, taxes, budgets or wars started. This man has been isolated and run into the ground by every detractor around including some from his own party. Is there that much prejudice in America still? This president jobs plan is all he can put forth now as he has been limited in what he can do by the TEA party run GOP! It is the mantra of the TEA/GOP party to make president Obama a one term president! Do not kid yourself about the TEA party. This group is loud, vocal, confrontational and in your face on only the issues they want changed. This TEA party is known to carry guns to meetings and show no mercy or respect to any speaker. Their narrow-minded one-track minds keep them on target to disrupt open meetings or change the topic at hand. Their sole mission is to make president Obama a one term president at all costs, even to the point of "Scorched Earth" tactics as used in the "Debt Ceiling" point which turned out to be a reduction of the USA's credit lowering by S&P.

[rodaurora]

Typical left wing taliban terrorist response to serious problems. It's always the marxist way or the highway with people like you. Tea Party people are people so feed up with jerks like you setting the dialouge that we have finally decided to do something about it. This country isn't just about you and your economy killing ideology. The progressive left is known for bomb throwing and hoping their libtard media arm will pick up the lies and propagate them. We have had enough of you and your ilk. Expect big changes in 2012...the wave is just off shore.

[moretruthnow]

I agree completely Vincente. The House tea party republicans would have gladly seen the country default. That is lunacy and unprincipled idiocy. We have a country that has way too many people disinterested in what is going on, and the others who will believe every bit of hate, lies and wickedness thrown at President Obama. They will hate our President instead of being at all interested in what the republicans have done since the president was elected. The GOP began attacking him when everything he did was for Americans beginning with the Stimulus that was to help the country out of the recession. The Health Care Reform - Affordable Care Act - is to benefit the country so that everyone will have the opportunity to have health insurance and so a doctor. This will help so many people who need medical care. But it is so easy to watch Fox to get all that republican propaganda that will keep the richest elected by the middle class and poor who will not have anything to show for it. No, they will have nothing but grief for electing those who have lost compassion, lost decency, and are driven by greed and hate.

[luadda22]

by KeithDrippingSprings September 13, 2011 10:45 PM EDT
We need CEO's to make reasonable wages so their workers can prosper again.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Ok, lets take Oberhelman's $10 million a year compensation package and give to the "workers" at CAT. Everyone gets about $106 more a year. I bet that will really raise your standard of living. Get off the envy bandwagon.

[stupa5]

Wow This CEO must be some kind of genuis!

[Fatesrider]

I'd vote for this man for President, and every member of congress.

[fedup12]

Oberhelman: Any politician that says no tax revenue or zero spending cuts does not deserve reelection. Our hole is so deep in this country with the debt and the debt service, the interest on that debt, before the big expenses come for Social Security and Medicare - for we baby boomers in a few years- that everything has to be on the table.
------------------------------------

So another in a long line of Pragmatic businessmen who say to take a balanced approach. Even if they have to pay more.

I would have liked to see Obamas big 4 trillion cut deal go through but it just wouldnt because the GOP would not budge on any new taxes to help.

[KKGould87]

Yes, what he said about Washington is true. I have no beef about him speaking out against the government. What I do have a problem with is what he said about the candidate applying to caterpillar. I grew up and still live in Peoria, IL. I used to look at Cat as the life source of my town. A place to work when you were honest and had dreams that helped you make them happen. Now, it is a place to go to kill your American dream. The lack of qualified candidates is due to each job requiring prior knowledge of CAT programs, policy, and procedure. You only get the things they need by working there. Sounds easy right? Just get in at a base or contract job and work your way up? Well, that's how it used to be. Now, even though they say they hire within, they don't move you. For example, my husband has worked in his job for years straight out of college, is the go to guy in his department no matter the shift, has a huge folder full of emails about how great he is and requesting him to be on the most important jobs, but though he has applied and applied to jobs he IS qualified for he has yet to get an interview. He often meets the new hire only to find they have no clue what their job is! ***?! If Doug thinks that it is the government's fault for a lack of quality candidates he is not totally correct. There are thousands if not millions of people like my husband in CAT stuck because of blind hiring managers. He needs to look within his own company for the candidates that don't need serious training. He should go back to how things used to be when CAT was an American dream machine and actually believed good work gets noticed.

[moretruthnow]

Well said and so true. The man with the experience should be the person promoted like your husband.

[y2k_y2k]

One of the most refreshing interviews I have seen anywhere and from my old Corporation to boot.
SOME PEOPLE ARE SO BUSY BAD MOUTHING THE PRESIDENT AND TAKING CHEAP NAME CALLING SHOTS THAT THEY DON'T REALIZE THAT THIS CEO SOUNDS JUST LIKE HIM. RETRAINING, INFRASTUCTGURE JOBS AND TAX INCREASES. GEE HOW THAT SOUNDS SO VERY FAMILIAR. The SLOW economy is not about one person. It is about all our politicians.
IF THAT SHOE FITS WEAR IT.

[lucifersshadow]

Duuuuuuuuuuuuuuuuu! It does not take a ceo to figure out that Washington is nothing but a huge kleptocracy.

[msimamaji]

Can we trust CAT CEO? Remember, a CEO is just a Crook, Exorbitantly Overpaid. Before calling Washington a bunch of crooks, Wall Street needs to look in a mirror. That includes the CEO of CAT.

[luadda22]

That's a sad, sad outlook you have there msimamji. So full of ignorance and hate.

[Americaisnumber1]

Can you trust the people you voted into Washington? That's the real question. Cat is hiring Americans and investing in America. Not sure why he needs to look in the mirror. Wall Street needed a bailout...Caterpillar didn't need one for the Depression in the 20's and 30's and didn't need one in 2008.