Assembly - January 2009 - (Page 34) Assembly Lines Caterpillar Cutting Costs at all Levels PEORIA, IL—Responding to deteriorating market conditions, Caterpillar Inc. is enacting a number of cost-cutting measures, including laying off some of its hourly workers and making “significant” cuts in terms of compensation for executives in 2009. The company is also suspending all merit pay increases for management and has instituted a hiring freeze. “We understand these decisions will disrupt the lives of many of our employees and their families, and we regret the need to take these steps,” says CEO Jim Owens. “Good companies become great companies when facing and addressing adversity, and over the decades that has been the case for Caterpillar.” In late December, the company laid off approximately 800 employees from its engine assembly plant in Mossville, IL. Hand Craft Meets High Tech in North America Dieter Morszeck President and CEO Rimowa Inc. Cologne, Germany Rimowa Inc. recently opened its first North American production facility in Cambridge, Ontario. Demand for our lightweight polycarbonate luggage has surged in recent years. The new plant will make luggage to supply the Americas. Double-digit growth in 2007 was reflected in sales of $118 million last year, an increase of 45 percent over fiscal 2006. The increase in export sales was even higher at 65 percent, leading to the decision to expand production. Despite recent economic uncertainties, we believe it is important to look ahead, so as to be ready for the future. The decision to take production to North America, for the first time since the company was founded in 1898, was not taken lightly. The wheels were set in motion for this expansion several months ago and despite recent economic uncertainties we believe it is important to look ahead, so as to be ready for the future. When the market recovers we will move ahead aggressively. Flying in the face of a movement by North American manufacturers to shift production offshore, the company chose the Cambridge area due in large measure to Canada’s reputation worldwide for a highly skilled, educated workforce. Another factor was the exciting technological explosion occurring in Canada’s Technology Triangle. Rimowa uses Space Age materials and state-of-the-art production equipment in the plant. We want to collaborate with developments taking place in the area to ensure that we stay ahead of the curve in our industry. We think by being in Cambridge, we are better able to do that. Geographic location was also a key influence. Situated on one of the main arteries to Pearson International Airport and shipping routes around the world, our new facility is in an ideal area to launch Rimowa’s growth in the Americas. While some have questioned the timing of this move, given the current economic climate, I believe that the decision is reflective of the long-term goals that we have set for ourselves. I am confident that this is precisely the right moment for Rimowa’s expansion. 34 ASSEMBLY / January 2009 www.assemblymag.com http://www.staubli.com http://www.staubli.com http://www.assemblymag.com
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.