From Jobmouse, news that Caterpillar is moving 4,700 jobs to the United States. But don’t get too happy:
- Eliminated 450 Canadian union jobs by permanently closing its plant in London, Ontario and moving those jobs to its plant in Muncie, Indiana. The Company cited high employee related costs. Employees at the Canadian plant were paid $35/hr on average compared to $12 to $18/hr at the US Plant.
- A $20 million expansion of its Sumter, South Carolina manufacturing facility, which includes adding 170,000 square feet, to it’s 105,000 square feet premises. When the expansion is fully operational and at full capacity, it is anticipated Caterpillar will add more than 80 jobs over a two-year period.
- A $200 million facility in Athens, Georgia, that will build small tracktype tractors and mini hydraulic excavators. The state-of-the-art, one-million-square-footfacility is expected to directly employ 1,400 people and create an additional 2,800 indirect jobs for a total of 4,200 new jobs.
Indiana, South Carolina and Georgia are states that do not have a strong union presence and have governments that are focused on encouraging companies to move operations there to boost employment and state revenue. Lower regulatory costs and taxes are two of the primary ways they are accomplishing this. These factors combine to boost profitability and motivate companies like Caterpillar to add operations to these parts of the country.