Viewing blog posts written by Gino DiCaro


Caterpillar CEO: pro growth policies and innovation will lead the MFG renaissance

Posted by Gino DiCaro, VP, Communications on Sept. 24, 2015

Caterpillar CEO, Doug Oberhelman, along with Honeywell CEO, Dave Cote, commented last week on CNBC's Squawk Box on the potential for a U.S. manufacturing renaissance.

At the core of their comments, were two drivers -- the tremendous innovation within their companies, like Caterpillar machines being interconnected by computers, and the pro-growth policies necessary to compete and win, like re-authorization of the U.S. Export-Import bank

California's own manufacturing sector boasts so much of the country's cutting edge innovation in R&D that it could translate into manufacturing for our middle class to lead the national manufacturing "scale-up". But like national policies, we need to make sure our state programs are inline with the competitive needs of our manufacturing base -- cost effective energy policies, flexible work laws, workforce training initiatives, more regulatory certainty, etc.  

With only two percent of the country's manufacturing investments last year, we have work to do. A powerful message of manufacturing growth is likely taking over the country, and now California needs to ensure its rightful place in that resurgence for its own economy.

Manufacturing executives in California should also follow the lead of CEO's like Oberhelman and Cote. If we see more of these public interviews and speeches from California manufacturing executives we can help give state lawmakers the support they need to pass pro-growth policies.

 

 

 





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Caterpillar's CEO is manufacturing's ultimate champion

Posted by Gino DiCaro, VP, Communications on Oct. 15, 2014

This month CMTA member Caterpillar CEO Doug Oberhelman delivered an inspiring speech at the National Manufacturers Association’s (NAM) annual meeting as he retired as NAM’s Chairman of the Board.

Oberhelman helped transform NAM’s effort into a national manufacturing revolution, taking manufacturing issue advocacy and turning it into a broader and louder voice about clean, efficient, high paying, incredibly innovative factories. His and other's efforts have put NAM on a mission to convince lawmakers to be champions of growth and job creation in the country’s most important economic sector. Oberhelman has been a tremendous messenger that our economy and hard working families will thrive with more manufacturing.

Specifically in California, there is a growing acknowledgement of the value of manufacturing within the lawmaking and regulatory communities but we must channel the efforts of NAM and Oberhelman to help manufacturers compete and grow. California boasts about innovating, but as Oberhelman says, “products [only] become real when a manufacturer makes them.”

While the country is starting to grow and re-shore manufacturing, California is lagging the “revolution” by attracting only 1.5 percent of the country’s manufacturing investments in 2013. Just like NAM's efforts across the country, California must be "powerful, loud and clear." Below is a snippet from Oberhelman and you can download the entire speech here.

“The manufacturing revolution continues into the 21st Century because the same principle holds true for today’s inventions. Whether it’s 3D printers, hybrid vehicles or dual-fuel engines – these products only become real when a manufacture makes them.

“Now, there’s even better news. In the 21st Century, the revolution has expanded to how we manufacture. Highly skilled women and men operate the sophisticated controls and robotics that are now permanent fixtures on factory floors. We’re not just 100 years; we’re light-years beyond the early 20th Century, when parts moving along a conveyor belt was a marvel.

“We are constantly innovating and improving, making factories safer while at the same time using less energy, less water and creating less waste.

“We’re now in the midst of a sustainable manufacturing revolution, and we’re going to see even more innovative and amazing changes ahead. I can’t wait.

“For that and dozens of other reasons, I’m pretty sure you agree that the United States needs to remain a nation that builds and changes – now, as much as ever. And that manufacturers can help this great economy realize its full potential if we stick together and speak together.

“So, please be engaged and stay engaged!

“We need a unified, powerful voice to make sure government policies support manufacturing. The NAM is that voice: Powerful, loud, and clear. 

 




You can also see Oberhelman's video message (not his speech) by clicking the image below.

Oberhelman image
 

Don't forget to sign up to be a CMTA Champion so we can include you in our efforts.

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Greening California without mandates - two examples

Posted by Gino DiCaro, VP, Communications on May 4, 2009

1. Caterpillar bulldozes to fuel efficiency and less greenhouse gases
California's Air Resources Board continues to formulate plans for cap and trade, mandatory reporting, carbon offsets and other mandates to reach bold California-only emission goals.  There are, though, other forces out there promoting change that are a win-win for everyone.  Take for example the Caterpillar D7E Track Type Tractor (what we call a bulldozer and pictured below) that was unveiled last week in front of the Cal EPA building.  This innovation screamer is a result of Caterpillar's focus on the marketplace and reducing the operating costs of their customers.  CARB acknowledged this innovative approach for powering these off-road machines at the recent unveiling of their new funding program for clean engine technologies  (see CARB release).



The machine looks like all the others you see working at various construction sites across the state.   It's only when you open the hood that you find that this machine is not like all the others because it relies on a new diesel electric drive technology that like a hybrid uses an engine to generate electricity which then runs most of the applications on the machine. Unlike a hybrid it doesn't store the energy but uses it to keep the machine cutting through the dirt - at a 20-30 percent fuel economy improvement (which equates to an equal amount of CO2 reductions).

So why is this Important? California leads the way on emission efficiencies, ranking second only behind Rhode Island according to the "2009 Competitiveness Redbook".  This position is the result of the ingenuity of California's workforce and manufacturers, and measures like CARB's grant program that incent cutting edge companies to help California lead the way.  We must ensure that the state's greenhouse gas policies and mandates don't hamper these innovations which have made California a recognized leader.

Governor Schwarzenegger has laid out lofty greenhouse gas reduction goals -- 20 percent by 2020 and 80 percent by 2050 -- so maybe a 20 to 30 percent fuel economy improvement for a bulldozer doesn't seem like much, but when you add up the fact that this machine can burn through more than 2,500 gallons of fuel a year, those savings start to add up.


2.  International Paper grows its West Sacramento recycling facility
Last month, International Paper rolled out its newest recycling facility in West Sacramento -- 57,000 feet of acreage and 30 employees will take their place in IP's Recycling Business which manages over 6 million tons of recycled paper per year.  IP said they intend to grow more in West Sacramento, but of course operating costs will dictate if and when that plays out.  This facility alone (one of three in California) will process 4,000 tons of material per month.  West Sacramento Mayor Christopher Cabaldon and California Integrated Waste Management Board Chairwoman Margo Reid Brown both appeared at the ceremony to congratulate IP on its leadership.

Why is this important you ask?  This is the second company in California that unveiled in the last two weeks yet more green contributions that were not a result of government mandates, but outcomes of public awareness campaigns, market shrewdness, innovation and customer demand.

Interesting facts about the recycling industry:

Cost range for a bale of recycled paper: $30 to $450
Workers: 85,000
Salaries & wages: $4 billion
Good & services: $10 billion
First California recycling campaign: 1981



From Left: Carlos Ramos - area plant manager, IP Recycling Business; Clark Weiss - operations manager, West Sacramento Recycling plant; Pete Grogan - manager of market development and innovation, IP RecyclingBusiness; Ram Surat - materials handler, West Sac Recycling Plant; Bill Lampe - director of operations, IP Recycling Business; West Sac Mayor Christopher Cabaldon; Margo Reid Brown - chair of CIWMB; Katie Brown - Margo's daughter


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