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Caterpillar Joins 'Onshoring' Trend

Wall Street Journal -- Caterpillar Inc. is considering relocating some heavy-equipment overseas production to a new U.S. plant, part of a growing movement among manufacturers to bring more operations back home—a shift that will likely spark fierce competition among states for new manufacturing jobs.
The trend, known as onshoring or reshoring, is gaining momentum as a weak U.S. dollar makes it costlier to import products from overseas. Manufacturers are also counting on White House jobs incentives, as well as their ability to negotiate lower prices from U.S. suppliers who were hurt by the downturn and willing to bargain.
After a decade of rapid globalization, economists say companies are seeing disadvantages of offshore production, including shipping costs, complicated logistics, and quality issues.

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Submitted Mar 13, 2010 By: JimL1

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SpruceGuse2 Champion Author Michigan Posts:4,893 Points:1,492,690 Joined:Mar 2006	Message Posted: Mar 13, 2010 3:01:35 AM Ignore SpruceGuse2 Report Abuse Stands to reason, it costs to travel and it will be easier to see whats going on here at home.
lpj Champion Author Macon Posts:7,415 Points:1,528,015 Joined:Apr 2006	Message Posted: Mar 13, 2010 3:00:42 AM Ignore lpj Report Abuse this global economy has about bankrupted the usa !!
AC-302 Champion Author Los Angeles Posts:14,877 Points:1,947,685 Joined:Aug 2004	Message Posted: Mar 13, 2010 3:00:16 AM Ignore AC-302 Report Abuse There are also issues with trade secrets and IP. The last thing you want is to teach foreign competitors how to make your product and the tricks of your trade. But that is exactly what is happening. All a foreign company has to do is hire away the foreign employees you trained. Poof. Your competitive edge is gone.
cv Champion Author Raleigh Posts:10,259 Points:2,291,130 Joined:Oct 2003	Message Posted: Mar 13, 2010 2:59:46 AM Ignore cv Report Abuse Good for Caterpillar, maybe this will help our jobs situation some.
albert2008 Champion Author Winnipeg Posts:2,478 Points:530,910 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:58:44 AM Ignore albert2008 Report Abuse bring the jobs back
albert2008 Champion Author Winnipeg Posts:2,478 Points:530,910 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:57:26 AM Ignore albert2008 Report Abuse the good the bad and the ugly
LostToo All-Star Author Illinois Posts:642 Points:283,940 Joined:May 2009	Message Posted: Mar 13, 2010 2:56:37 AM Ignore LostToo Report Abuse IT'S ABOUT DAMN TIME!
albert2008 Champion Author Winnipeg Posts:2,478 Points:530,910 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:56:08 AM Ignore albert2008 Report Abuse they have to go with the flow
rsm315 All-Star Author Detroit Posts:838 Points:219,530 Joined:Dec 2009	Message Posted: Mar 13, 2010 2:55:22 AM Ignore rsm315 Report Abuse Good , American products for american people.
REVLAW Champion Author San Antonio Posts:5,429 Points:1,034,065 Joined:Jul 2007	Message Posted: Mar 13, 2010 2:55:00 AM Ignore REVLAW Report Abuse This is perhaps good news. And, it is a function of "capitalism" ... not "HOism".
albert2008 Champion Author Winnipeg Posts:2,478 Points:530,910 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:54:51 AM Ignore albert2008 Report Abuse anything to make a buck
bills55 Champion Author San Diego Posts:1,178 Points:303,950 Joined:Sep 2009	Message Posted: Mar 13, 2010 2:54:02 AM Ignore bills55 Report Abuse I think that is great news. Cat is truly a leader. We have to start making things in America again.
turbosaab Champion Author Cleveland Posts:9,130 Points:1,437,690 Joined:Sep 2006	Message Posted: Mar 13, 2010 2:52:14 AM Ignore turbosaab Report Abuse This is a world economy. Caterpillar and others aren't doing this out of any sense of patriotism; it's a move that will bolster their near term bottom line. And yes, Government subsidies do play a role in the calculus. However, if economic conditions change in the future they will re-relocate overseas. The trick will be to make them stay here for the long term.
KillChain Champion Author Albuquerque Posts:2,264 Points:603,800 Joined:Jun 2006	Message Posted: Mar 13, 2010 2:51:12 AM Ignore KillChain Report Abuse Maybe "Cat" has the right idea.
mk9999 Champion Author Rochester Posts:2,977 Points:696,220 Joined:Aug 2008	Message Posted: Mar 13, 2010 2:50:33 AM Ignore mk9999 Report Abuse Stupid big shots should never have been allowed to move jobs out of the country in the first place.
salog Champion Author Columbia Posts:3,528 Points:878,865 Joined:Oct 2006	Message Posted: Mar 13, 2010 2:49:28 AM Ignore salog Report Abuse just as long as taxpayer dollars are not involved.
ILVET Champion Author Illinois Posts:9,905 Points:1,964,620 Joined:Jan 2005	Message Posted: Mar 13, 2010 2:49:26 AM Ignore ILVET Report Abuse Something tells me we will be paying for this
HankHill09 Champion Author Long Island Posts:1,236 Points:248,675 Joined:Sep 2009	Message Posted: Mar 13, 2010 2:48:54 AM Ignore HankHill09 Report Abuse Welcome back. It's nice to see that outsourcing has bitten us in the ass. Let's bring jobs back to America !!!!!!
WonderfulMI Champion Author Michigan Posts:5,872 Points:812,350 Joined:Jun 2008	Message Posted: Mar 13, 2010 2:45:55 AM Ignore WonderfulMI Report Abuse It is good to have the work back. That said, if it costs more to manufacture something here, we can hardly expect to export those products overseas. I formerly worked in manufacturing for 33 years. If we make something here and can only sell it domestically, we do not improve our trade balance. If we slap a tariff on imports, we should remember that a tariff is paid for by American consumers, and that the Federal government receives that tax revenue from our pockets. All the tariff does is jack up domestic prices.
cincidap Champion Author Cincinnati Posts:3,080 Points:602,350 Joined:Sep 2006	Message Posted: Mar 13, 2010 2:44:40 AM Ignore cincidap Report Abuse This is good news. U.S. manufacturers are subsidized regardless of where they operate. Better that the money stay here than that it go to China. It's a shame that the logistics/quality/shipping issues weren't originally considered when all of those plants were closed in the 1990s and last decade.
nurdco Champion Author Colorado Springs Posts:3,832 Points:719,030 Joined:Apr 2008	Message Posted: Mar 13, 2010 2:44:12 AM Ignore nurdco Report Abuse It doesn't help anybody when the Global Economy is so bad...
INDY51 Champion Author North Carolina Posts:1,505 Points:339,970 Joined:Jun 2009	Message Posted: Mar 13, 2010 2:44:06 AM Ignore INDY51 Report Abuse i just don't know how this "onshoring" works. why send any jobs overseas haven't we done that enough already!!!
BartBuzz Champion Author Atlanta Posts:3,938 Points:810,010 Joined:Aug 2006	Message Posted: Mar 13, 2010 2:42:33 AM Ignore BartBuzz Report Abuse I hope this doesn't mean the taxpayers will be subsidizing US manufacturers.
mickealo Champion Author Spokane Posts:1,471 Points:1,213,370 Joined:Oct 2006	Message Posted: Mar 13, 2010 2:42:11 AM Ignore mickealo Report Abuse it is about time
BeaverBilly Champion Author Alberta Posts:4,995 Points:1,578,660 Joined:Feb 2003	Message Posted: Mar 13, 2010 2:42:00 AM Ignore BeaverBilly Report Abuse Great for Caterpillar.
Ticoman54 Champion Author Miami Posts:2,616 Points:587,170 Joined:Oct 2008	Message Posted: Mar 13, 2010 2:41:33 AM Ignore Ticoman54 Report Abuse It's good to see U.S. companies bringing back jobs to their own country.
lion54 Champion Author South Carolina Posts:4,669 Points:670,320 Joined:Sep 2006	Message Posted: Mar 13, 2010 2:41:15 AM Ignore lion54 Report Abuse Great idea. Make it all in the USA
throttle Champion Author Maryland Posts:7,872 Points:1,655,180 Joined:Jul 2004	Message Posted: Mar 13, 2010 2:40:12 AM Ignore throttle Report Abuse This is a win-win for the companies and the U.S.
save4buyin Rookie Author Phoenix Posts:36 Points:258,505 Joined:Jun 2007	Message Posted: Mar 13, 2010 2:38:59 AM Ignore save4buyin Report Abuse It makes sense to them for now because of the weak dollar, etc. Also we account for their biggest sales volume so it is cheaper to build close to most of their customers. Don't read this as a patriotic thing for them, because if the situation changes, they will go right back to where costs and profits tell them is best.
03mdx Champion Author Syracuse Posts:1,971 Points:627,855 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:38:27 AM Ignore 03mdx Report Abuse This is something that many companies must consider. We need work here in the US very badly.
TheSnowstorm Champion Author Montreal Posts:4,463 Points:1,005,630 Joined:June 2005	Message Posted: Mar 13, 2010 2:37:59 AM Ignore TheSnowstorm Report Abuse Go Cat!!!
jimraehl Champion Author Utah Posts:2,192 Points:671,590 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:37:57 AM Ignore jimraehl Report Abuse Move jobs here. Yes.
RochBear Champion Author Minnesota Posts:5,563 Points:1,053,165 Joined:May 2006	Message Posted: Mar 13, 2010 2:37:31 AM Ignore RochBear Report Abuse Especially for "heavy" equipment. It costs SO much in shipping to ship it. IT's better if you only have to ship from IL rather than from China. Also the American workers speak English. There are a lot of places where the management has had to learn Spanish, since they are dealing with Mexico.
TommyTraveler Champion Author Cincinnati Posts:3,696 Points:723,005 Joined:Nov 2007	Message Posted: Mar 13, 2010 2:35:46 AM Ignore TommyTraveler Report Abuse Hopefully this trend will develope and more manufactures will move and start plant here. No manufacturing jobs, no middleclass, no mortgages paid, no cars bought etc.
Bubba44612 Champion Author Ohio Posts:2,671 Points:917,950 Joined:Aug 2005	Message Posted: Mar 13, 2010 2:35:40 AM Ignore Bubba44612 Report Abuse It's about time. When will the CEO's realize that we don't need them if there is no manufacturing here.
cj003 Champion Author Michigan Posts:1,390 Points:979,725 Joined:Mar 2006	Message Posted: Mar 13, 2010 2:35:35 AM Ignore cj003 Report Abuse make it in the USA if not dont buy that foreign made crap no matter whos name is on it.
FordF2502001 Champion Author Mississippi Posts:3,083 Points:669,100 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:32:59 AM Ignore FordF2502001 Report Abuse I praise President Bush for starting the belief in a low United States dollar. Great job man!
RocketmanC99 Champion Author Missouri Posts:1,264 Points:442,800 Joined:Jan 2007	Message Posted: Mar 13, 2010 2:32:26 AM Ignore RocketmanC99 Report Abuse Let's see how this works out for them. [Edited by: RocketmanC99 at 3/13/2010 8:37:07 AM EST]
Bleeder Champion Author Virginia Posts:3,931 Points:818,705 Joined:Jan 2008	Message Posted: Mar 13, 2010 2:31:55 AM Ignore Bleeder Report Abuse Sad to think it had to get this bad before companies would return jobs back to the country which gave them their start.
adr47 Champion Author Saskatchewan Posts:2,411 Points:540,470 Joined:Nov 2008	Message Posted: Mar 13, 2010 2:31:04 AM Ignore adr47 Report Abuse The light comes on!
wizzard1222 Champion Author St. Louis Posts:3,718 Points:1,345,140 Joined:Mar 2006	Message Posted: Mar 13, 2010 2:29:29 AM Ignore wizzard1222 Report Abuse About time !!!
FocusGuy Champion Author Seattle Posts:2,116 Points:457,375 Joined:Apr 2009	Message Posted: Mar 13, 2010 2:27:47 AM Ignore FocusGuy Report Abuse another econ 101 lesson. "cost-benefit"
granma3xnow Champion Author Indiana Posts:1,998 Points:410,675 Joined:Dec 2008	Message Posted: Mar 13, 2010 2:25:19 AM Ignore granma3xnow Report Abuse About 35 years ago, Caterpillar built a huge complex in Mentor Ohio, only to abandon it 7-10 years later in favor of overseas. Perhaps they could move back into their building and put some folks to work.
gabbygusIN Champion Author Indiana Posts:2,380 Points:598,075 Joined:Oct 2008	Message Posted: Mar 13, 2010 2:25:09 AM Ignore gabbygusIN Report Abuse Will this start a new trend???? You all come back now ya hear!
fcdriver Champion Author Tennessee Posts:2,859 Points:601,470 Joined:Sep 2008	Message Posted: Mar 13, 2010 2:23:20 AM Ignore fcdriver Report Abuse i aways thought it would eventually work out
hwmillerster Champion Author Missouri Posts:1,858 Points:499,915 Joined:Oct 2008	Message Posted: Mar 13, 2010 2:23:15 AM Ignore hwmillerster Report Abuse With the value of the dollar going down, the US is becoming a cheap labor country.
RocketGeek Champion Author Grand Rapids Posts:5,620 Points:1,137,835 Joined:May 2005	Message Posted: Mar 13, 2010 2:21:20 AM Ignore RocketGeek Report Abuse Another factor at work in some industries is the strengthening of some foreign economies. Malaysia is a good example of where the cost of doing business is going up.
gasman50 Champion Author Portland Posts:3,929 Points:1,437,825 Joined:Nov 2005	Message Posted: Mar 13, 2010 2:20:25 AM Ignore gasman50 Report Abuse Wonderful news, however I wouldn't count on the White house, They are the problem, not the solution
9C1 Champion Author Chicago Posts:17,700 Points:3,280,645 Joined:Jul 2001	Message Posted: Mar 13, 2010 2:19:53 AM Ignore 9C1 Report Abuse Hopeflly a trend.
mfeldstein Champion Author Ottawa Posts:3,742 Points:1,053,415 Joined:Feb 2007	Message Posted: Mar 13, 2010 2:19:08 AM Ignore mfeldstein Report Abuse Interesting. A blip or a trend?
jeepman64 All-Star Author Indiana Posts:909 Points:847,660 Joined:Aug 2004	Message Posted: Mar 13, 2010 2:16:31 AM Ignore jeepman64 Report Abuse And the pendulum returns.
fillerupyeoww All-Star Author Columbus Posts:966 Points:676,480 Joined:Mar 2008	Message Posted: Mar 13, 2010 2:15:50 AM Ignore fillerupyeoww Report Abuse Better product quality will surely follow.