Wednesday, February 27, 2013

Caterpillar: Iron mine no guarantee of those "thousands" of jobs Walker talks about

From Mike Wiggins, Chairman of the Bad River Band

From WisBusiness.com …
-- A proposed iron ore mine in northern Wisconsin is unlikely to directly create jobs at Caterpillar Global Mining near Milwaukee, and even if it did, those workers would likely come from out of state, a company executive said today.

John Disharoon, vice president of industry relations for Caterpillar, told the Milwaukee Rotary Club that mining is a vital industry that produces the minerals and fuels needed for the world's rapidly growing and increasingly urbanized population. That means the Caterpillar products being made right now in Wisconsin are destined to be exported.

"More than half of our sales are outside the United States," said Disharoon.

What tends to be imported by Caterpillar, however, is workers.

Wisconsin simply doesn't have enough workers with the right skills, said Disharoon. He said local technical colleges aren't teaching robotic forms of welding and other advanced skills.

"Most of the people that we get in our skilled trade shop come from someplace else," he said. "We're a very high-tech engineering firm. The welding that you will do in South Milwaukee for us at Caterpillar, you can't come out of a two-year welding program and walk right out in the shop. We have to train you on our tools and our processes."

Disharoon told WisBusiness.com afterward that it's impossible to predict if the proposed Gogebic Taconite mine would mean new welding jobs at Caterpillar's Wisconsin plants, which employ about 2,000 people, mostly in Oak Creek and South Milwaukee.

"Mines open and close every week," he said. "If this mine opens up and is permitted in Wisconsin, one is probably going to shut down in Brazil. We don't add production lines based on a mine opening or closing; we just try to serve the industry as a whole. As early as it is in this process, not having seen an equipment order out there, it's very tough for anybody to say how many jobs are going to be created -- sustained jobs -- if the order is placed and CAT wins the business."