As per reports, Caterpillar, Inc. (CAT) is having a tough time getting the materials it needs from suppliers facing labor crunch, adding another hurdle for the machinery maker that is already amid a global chip shortfall. The delays may keep it from fully meeting demand this year. Chief Executive Officer Jim Umpleby informed about some isolated labor shortages in its factories, but nothing major for Caterpillar internally. The issue lies with many of its suppliers facing a lack of workers, adding to already increasing lag times for delivery.
“It’s been more of an issue for a number of our suppliers who’ve had more trouble with labor than we have, but clearly labor is tight, there’s no question about it,” stated Umpleby.
The CEO informed that the company has added U.S. jobs during the recovery from the pandemic, and is hiring across the globe. He also added that it’s focused on offering competitive pay, but did not provide specifics. Caterpillar will continue to make up for rising raw material costs by increasing prices on its equipment.
Dow 30 Component Caterpillar, Inc. (CAT) is the world’s chief manufacturer of diesel and natural gas engines, construction and mining equipment, industrial gas turbines, and diesel-electric locomotives. Caterpillar, Inc. also works to make sustainable progress possible and contributes to driving positive change on every continent. To learn more about Caterpillar, Inc. (CAT) and to continue to track its progress please visit the Vista Partners Caterpillar, Inc. Coverage Page.
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