Posted on September 21, 2018
Six months into the U.S. tariffs on imported aluminum and steel, Caterpillar (NYSE:CAT) is finding that one of the best ways it can protect profits is a cost cutting strategy that is more than two years old, Reuters reports.
Even though demand has picked up since 2016, its Clayton plant still runs a single shift and operates only four days a week. One third of the facility’s 550 employees are on flexible contracts.
It has also redesigned all new machines it makes with over 20% fewer parts, cutting back on the consumption of steel which brings down the cost, said Tony Fassino, VP at Caterpillar’s building construction products.
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