Investment Directions submits:
The saying “You can’t go home again” doesn’t apply to US corporations. Caterpillar’s (CAT) latest announcement is that it is bringing some major equipment production back to the US. What on earth is going on here? And what does it mean to the US economy – and to investors? Well, this is upbeat news and gives us good insights into where this “new economy” of ours is heading.
The Wall Street Journal describes Caterpillar’s new strategy in “Caterpillar Joins ‘Onshoring’ Trend” (March 12; page B-1). So why would a major manufacturer want to return production to the US? After all, haven’t we learned that offshore production is the heart of globalization? Here is the article’s explanation: