Arkansas Blog: UPDATE: Caterpillar to NLR

More to come, but I just caught news that a Caterpillar motor grader production plan is slated for the vacant video plant in North Little Rock.

Not long ago, Caterpillar (which has had contentious relationships with a union representing assembly employees) announced layoffs elsewhere in the company.

Big jobs for Arkansas, about 600 of them.

Caterpillar talked about a new motor grader plant back in June, but an existing facility in Illinois was mentioned then as a front-runner. The back story ought to be interesting on the final location. Jobs were cut in Decatur last month. There has been nervousness there, the local newspaper reports, about loss of motor grader jobs, said to be part of an increase in production of larger mining machines in Decatur.

UPDATE: Jon Harrison, who spoke on behalf of Caterpillar, said one of the deciding factors in bringing the plant to North Little Rock was Arkansas’ “friendly business climate.” Part of what made the business climate so friendly was no doubt the incentives package given to the company. The state gave CAT $3 million from the governor’s quick-action closing fund which will be used to develop a test track, an outside storage area and an entrance road. The state also offered training assistance for new hires and three performance-based incentives including:

Tax Back – provides a sales tax refund on eligible construction materials.
Advantage Arkansas – provides income tax credits based on payroll of new employees (credit earned each tax year for a period of five years).
Create Rebate – provides a cash rebate equal to five percent of payroll for 10 years.

During the press conference, neither Harrison nor Gov. Beebe went into more detail on exactly why NLR was chosen over other possible locations.

UPDATE UPDATE: Arkansas Business sheds more light on city (not state) incentives to Caterpillar including reduced electricity bills, a new power substation, a water treatment facility, the waiver of building permit fees and carbon offsets. -- GPM.

NORTH LITTLE ROCK, Arkansas (January 5, 2009) – Caterpillar, the world’s largest manufacturer of construction and mining equipment, today announced plans to locate its new North American motor grader production facility in North Little Rock, Arkansas. The company is locating in the former Deluxe Video building, where it will invest $140 million and employ approximately 600 people. Production of commercial motor graders is expected to begin in early 2010.

“Welcoming a well-known and respected company like Caterpillar to Arkansas is a great way to start 2009,” Governor Mike Beebe said. “We look forward to a long and successful partnership with Caterpillar that will serve as another example of the advantages Arkansas has to offer to companies increasing their presence throughout the world.”

A full line of motor graders, with the exception of the 24M motor grader, which is used primarily for mining applications, will be manufactured at the North Little Rock facility. For decades, Caterpillar customers have used these motor graders to build and maintain roads, highways, airports and other construction projects on every continent.

“Relying on the Caterpillar’s foundational values, and the Caterpillar Production System with 6 Sigma discipline, the North Little Rock facility will be a benchmark for manufacturing productivity, quality and safety,” said Jon Harrison, General Manager of North American Motor Grader Operations for Caterpillar, and the North Little Rock facility. “Moving motor grader production to North Little Rock is part of Caterpillar’s long-term, strategic plan to increase its large mining truck capacity in Decatur, Illinois and drive greater focus on improving motor grader production.”

“For North Little Rock, central Arkansas, and the state, the benefits of being the home of an internationally known Caterpillar product are many and huge,” said North Little Rock Mayor Patrick Hays. “This decision is an announcement to the world that we are a major factor in the vehicle manufacturing industry.”

Hays said the efforts to bring Caterpillar to North Little Rock involved the cooperation of local and state governments, as well as the North Little Rock Economic Development Corporation, the Metro Little Rock Alliance, and the chambers of commerce of North Little Rock and Little Rock.

“Our successful team effort provides a textbook example of how important both regional and intergovernmental cooperation are to a winning economic development strategy,” said Hays.

Headquartered in Peoria, Illinois, Caterpillar is a global operation with more than 400 locations in 50 countries. The company has more than 500 products sold worldwide, with sales totaling $44.9 billion in 2007.

Those interested in employment at the Caterpillar facility can apply online at www.cat.com/careers. Hiring will begin in mid-2009.

Comments

"we are a major factor in the vehicle manufacturing industry". Mayor PH Hayes.

What the hell is he basing that on? One plant? I wish it was true but wishing don't make it so.

maybe Cat picked NLR because it has its own navy to provide Cat protection without having to matain its own standing navy.

"major factor" ?????????????

Posted by: Citizen1 | January 5, 2009 11:42 AM

Close to the AR RIver for international shipping is more likely... along with the "right to fire" in AR, and pay very low wages.

Since CAFTA has not yet passed, I am a bit surprised they are considering adding on at this point in time.

Posted by: Eureka Springs, AR | January 5, 2009 12:11 PM

The U.S. has lost 4,000,000 manufacturing jobs since 2000, including 604,000 lost in 2008, alone. Caterpillar's $140,000,000 investment in NLR and 600 new jobs for Greater Little Rock is truly good news. Kudos to all who made it happen!

Posted by: durangokid | January 5, 2009 12:11 PM

NLR jobs are not listed yet.

Posted by: StonedBored | January 5, 2009 12:26 PM

So, AT, where did the little truck story (with the backstory about the leg changing traffic laws) come from?!

Posted by: Hillcrustian | January 5, 2009 12:43 PM

'Arkansas' "friendly business climate."' = Union hating

Posted by: 70%er | January 5, 2009 01:03 PM

With money and incentives floating around like that I have a suggestion for NormaB:

Perhaps it's time to plan on opening Bates Escort Services, Inc....oops. ...

BATES CLASSIC ESCORT SERVICES, LLC.

Employee credits alone could payoff your Chenal mortgage, unless your ex done did it.

With subsidies you could extend operations into NWA where at least 15 competitors
are waiting to be merged, classed up, and made part of well-oiled, smooth-legged corporate relationship.

With funding like that what's to prevent you from opening a region chain of

PUSSY GALORE Motels?

Nothing. Notta.

I need a billing address for this ad-vice memo.

Posted by: eLwood | January 5, 2009 01:40 PM

Best laugh of the day so far, eL.
Perhaps you and I could partner with Norma in providing discreet limo services to her motels.

Posted by: durangokid | January 5, 2009 02:00 PM

"So, AT, where did the little truck story (with the backstory about the leg changing traffic laws) come from?!"

Ahh, with "new media" erroneous reports and baseless gossip can be scrubbed away as if they never existed.

A perfect example of the problems with truth and accuracy in internet "news" reporting.

Posted by: 24fps | January 5, 2009 03:02 PM

Enough with the serious talk about incentives and jobs, what about the TEST TRACK. North Little Rock could become the home of grader sports just like Charlotte NC is the home of NASCAR. Grader races, move the most dirt, obstacle courses, use your imagination. In the rural south, you can sell tickets to watch graders on a test track. We are the land of opportunity and the opportunity to become the home of motor grader sports.

Posted by: Paul | January 5, 2009 04:03 PM

Job,s galore, thats great, now we don't have to migrate so for north. Oh, by the way everify goes into effect Jan.1st. But I'm sure don and george can tell cat how to get around that.

Only thing I can advise ole' Beebee is you stand and watch them rape someone else gives them the same right to do it to you. After all what have those cats got to lose? They are getting millions of our tax dollars thrown at them. Toyota in Mississippi toke the same dollars from them, and look at their pretty empty building. Course this building is already there ,ani't it?

Cat, and them moving here and closing Illinois, instead of enlarging there base. And building new plant's. They are closing one and relocating, now that makes me wonder if there not like the ole' joke about a cheif name bowells, when the army came he thought they were there to move him and his people to another location. So he blurted out Bowells no move. So they sent him to the fort surgeon who gave him some exlaxs, after a couple of trips to the surgeon, He shouted out upon entering the Fort Bowells move now tee-pee full of shit. I wonder if that ani't the story in Illinois.

Posted by: Americonio | January 5, 2009 04:29 PM

When you drop trou, lube up and bend over, it's NOT rape... What is it, corporate "welfare" or extortion?!!
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Posted by: Larry | January 5, 2009 09:34 PM

I work for a regring shop that supports Cat in Illinois and because of their move,i may be out of a job.
We have several accounts from Cat,including Decatur.
Cat is a big part of our business,without them our company will go under.
Your gain is our loss.
I hope umemployment pays good.

Posted by: dan | January 7, 2009 01:44 AM

Arkansas Blog

UPDATE: Caterpillar to NLR

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