Monday, March 28, 2011

Caterpillar: Not just a fuzzy bug

Inflation is on the rise and so is spending to cover the costs.  The recovery is weak at best and none at worst. Companies are looking overseas for their growth and government workers demand their pensions be funded and their medical insurance contributions stay lower than what the private sector is expected to pay.

The chief executive of Caterpillar Inc (CAT.N) has warned the governor of Illinois that state spending and an unfavorable business climate could undermine the competitiveness of Illinois-based companies.
Doug Oberhelman sent the letter last week to Gov. Pat Quinn, noting that four states have invited the Peoria-based heavy equipment maker to relocate since Illinois raised personal and corporate income taxes in January.
"I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest," Oberhelman wrote in the letter obtained Friday by the Springfield news bureau of Lee Enterprises.
Oberhelman attached letters from the governors or other officials of Texas, Nebraska, Virginia and South Dakota, all of whom cited the recent Illinois tax hikes and offered to roll out the red carpet to Caterpillar.
Caterpillar spokesman Jim Dugan declined to provide a copy of Oberhelman's letter, but said it was not a threat to abandon Illinois -- where Caterpillar employs 23,000 of its 104,000 global employees.

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