If there’s a single company that illustrates the huge range of opportunities and challenges facing the U.S. economy today, it might be Caterpillar, the heavy-machinery giant based in Peoria, Ill. Like most other firms, Cat took a hit following the financial crisis. But since then, it’s bounced back–and how. After a strong second quarter, the firm is on track for a second record-breaking year in a row and will likely sell $70 billion of its famous yellow earthmovers, tractors and mining equipment globally.<\/p>\n
As products roll off the line at the recently expanded East Peoria factory, every one is marked with a flag that designates its final destination. There are a lot of Chinese, Indian and Australian flags. But there are plenty of American ones too, and their numbers are growing. “We put those flags on a few years back. I wanted our workers to understand that globalization isn’t necessarily about someone taking your job,” says Caterpillar CEO Doug Oberhelman. Indeed, Caterpillar thinks less about a single world market than many regional ones. The company is global, but where it can, it sources and produces locally, which is a natural hedge against everything from oil prices to currency risk to changing customer tastes. The bottom line: jobs and growth are split more or less equally between the U.S. and the rest of the world.<\/p>\n