Bloomberg notes the NAM and Chamber of Commerce’s opposition in the article, “Business Groups Press Lawmakers to Oppose Health-Care Measure, as well as:

“The measure would drive up labor costs to the point of forcing job losses,” the National Retail Federation said in its letter. “A ‘transparent procedural ploy’ for passing the package would harm Congress’s reputation.”

Caterpillar Inc., the world’s largest maker of construction equipment, in a letter said the measure would raise its cost by $100 million in the first year.

“We can ill afford cost increases that place us at a disadvantage versus global competitors,” wrote Gregory S. Folley, vice president and chief human resources officer at Peoria, Illinois-based Caterpillar, in the March 18 letter.

More …

• Dow-Jones, “UPDATE: Groups Make Final Push To Influence Health Bill Vote“
• MarketWatch, “Pros, cons take last shot at health-care bill“

We previously posted the NAM’s key vote letter in opposition.

And, in case the thought crossed your mind, no, House leadership did not find a way to use the reconciliation process to sneak tort reform into the health care bill. Total dollars spent on medical liability reforms? Zero.

From Dow Jones (hat tip, Drudge), “Caterpillar: Health care bill would cost it $100M“:

In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan “because of the substantial cost burdens it would place on our shareholders, employees and retirees.”

Caterpillar, the world’s largest construction machinery manufacturer by sales, said it’s particularly opposed to provisions in the bill that would expand Medicare taxes and mandate insurance coverage. The legislation would require nearly all companies to provide health insurance for their employees or face large fines.

The Peoria-based company said these provisions would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.

“We can ill-afford cost increases that place us at a disadvantage versus our global competitors,” said the letter signed by Gregory Folley, vice president and chief human resources officer of Caterpillar. “We are disappointed that efforts at reform have not addressed the cost concerns we’ve raised throughout the year.”

Wall Street Journal, “Factories Get Set to Hire“:

Manufacturers are seeing more signs that the U.S. economic recovery is on a solid footing, opening the way for new hiring as well as call-backs for factory workers laid off during the depths of the recession.

Caterpillar Inc., the Peoria, Ill.-based heavy-equipment maker, has brought back 600 workers in the past 60 days, including 100 recalled to an engine plant in Indiana last week. Allen Edmonds Shoe Corp. has been relying on overtime to meet growing demand, but is now preparing to start adding new workers at its U.S. plants in coming weeks.

The Federal Reserve said Wednesday that industrial production, which includes utility and mining output, as well as manufacturing, rose 0.9% in January, the seventh straight monthly increase. Factory output rose a solid 1%, with improvement across a wide range of industries, including apparel and appliances. Output of motor vehicles and parts was particularly strong, rising 4.9%, which economists attributed to pent-up demand and government incentives that fueled traffic to dealers.

From informal conversations with NAM member companies, we do get a sense that employers are starting to consider the possibility of being hopeful in the recovery. David Huether, the NAM’s chief economist, commented on the latest Federal Reserve’s industrial production numbers on Wednesday, “While recent signs are encouraging, the recovery is unlikely to be sustainable at this rapid pace as much of it was driven by short-term inventory and one-time government spending.”

The Fed’s news release is here.

• Associated Press, “Economic recovery showing endurance“
• Bloomberg, “Industrial Production in U.S. Rose 0.9% in January“
• Inside Indiana Business, “CAT Recalls About 100 Workers“

In his appearance on CNBC’s “Squawk Box” on Wednesday, NAM President John Engler cited the disappointing results of the stimulus bill in arguing for elevating the importance of a long-term highway bill reauthorization that permits investments that support economic growth. From his interview with Becky Quick:

Engler: In the stimulus package, for example, which the NAM took a big leap of faith and we supported that early, but the impact, say, on infrastructure has been pretty negligible. Because the fall-off for local and state revenues for roads and bridges was so precipitous that the federal money really kind of got us back to about level. There was really no net significant gain there.

He did make it clear that the stimulus had merit: What if that spending had not been replaced? But let’s not settle for that inadequate amount.

Engler: I was talking to one of the Senators last week, and he said, you know, some of our prominent road builders in this state are at risk. We need to get that going, so you shouldn’t be delaying …

Quick: At risk because there’s not enough work, or there’s not capital?

Engler: Not enough work. There’s no contracts, there’s no jobs. And we need to have…we shouldn’t be putting off the transportation package for a couple of years. That’s something we ought to be saying: Here’s a seven-year bill. Here’s how much we’re going to ramp that up.

Comments reaffirmed by a Bloomberg story, “Caterpillar, Deere, Missouri Await Road Money as Projects Stall“:

Sept. 24 (Bloomberg) — Missouri wants to widen Interstate 70 between St. Louis and Kansas City to get traffic, and jobs, moving again. Construction-equipment makers Caterpillar Inc. and Deere & Co. stand ready to help.

All are being stymied by a legislative deadlock that has stalled projects in Missouri and throughout the U.S. With revenue from fuel taxes declining, lawmakers are arguing over how to renew a six-year, $286.5 billion spending law that expires in six days.

The House yesterday passed a three-month extension of the highway bill, 335-85. The three-month extension is a much better approach than the 18-month extension some in the Senate and the Administration are advocating. The longer-term extension simply delays decisionmaking for the sake of electoral politics, shortchanging the country and basic investment in the process.

John Engler, president of the National Association of Manufacturers, packed a lot of policy perspective into his seven-and-a-half minute interview with CNBC’s Becky Quick on Squawk Box. The discussion included green jobs, nuclear energy, infrastructure, trade and the Administration’s need to develop a “growth strategy.”

Engler was attending the National Energy Summit this morning, and CNBC was on hand. There are other very good interviews:

• Powering Up With Coal: Steven Leer, CEO of Arch Coal, discusses alternative energy, reducing carbon dioxide emissions, the coal industry and more with CNBC’s Becky Quick.
• Energizing the Future: CNBC’s Becky Quick interviews Mayo Shattuck, CEO of Constellation Energy, at the National Energy Summit.
• Blue Chips Take on Energy Jim Owens, CEO of Caterpillar, and Chad Holliday, of Dupont, discuss their energy initiatives with CNBC’s Becky Quick.
• Making Energy Affordable: CNBC’s Becky Quick interviews John Hofmeister, founder and CEO of Citizens for Affordable Energy and the former president of Shell Oil.
• Sustaining a Competetive America: CNBC’s Becky Quick interviews Deborah Wince-Smith, president of the Council on Competitiveness, at the National Energy Summit.

Washington Post, “In Midwest, Obama Sings Praises of Stimulus Plan“:

EAST PEORIA, Ill., Feb. 12 — President Obama on Thursday touted the $789 billion economic stimulus package nearing congressional approval, telling workers at a huge manufacturing plant here that “a new wave of innovation, activity and construction will be unleashed all across America” once the plan is enacted.

The Post’s story is built around the President’s appearance at the Caterpillar plant in Peoria, Ill. Caterpillar and its top executive, Jim Owens, are advocates of expanded trade opportunities. So…

While Owens supports the stimulus plan, he is part of a group of manufacturing executives who had expressed concern that a “buy American” provision in the stimulus legislation could lead to retaliatory actions by other countries. The provision would require infrastructure projects in the stimulus bill to be built with U.S.-made iron and steel.

The final version of the stimulus bill includes the provision, although it says it must be applied in a manner consistent with U.S. obligations under international agreements.

“Absence of that wording would be perceived as violating our trade agreements and risking retaliation by countries accounting for 80 percent of our exports,” said Franklin J. Vargo, vice president for international economic affairs at the National Association of Manufacturers. “Even with that language, the provision affects countries not participating in the World Trade Organization agreement or not having a bilateral trade agreement with the United States.”

And a reasonable Washington Post editorial, “A Fiscal Gamble — The stimulus package isn’t pretty, but it is a risk worth taking.”

Finally, Bloomberg reports on the weakened tax provisions included in the final conference report, a set-back for manufacturing and the economy, “Tax benefit push falls short“:

WASHINGTON — The National Association of Manufacturers lost a last-minute lobbying campaign to fully restore a business tax break that House and Senate negotiators all but eliminated from the $789 billion economic stimulus bill.

Instead, lawmakers agreed to make more companies eligible for the tax break while still shutting large companies out of the benefit, according to a description released by the Senate Finance and House Ways and Means committees.

For the NAM’s view of these developments, the tax provisions, and our support for final passage, see this statement and letter posted at Shopfloor.org last evening.

Chicago Tribune, “Obama touts deal as boost to Caterpillar workers:”

WASHINGTON — Even before the deal was completed in Congress, President Barack Obama on Wednesday said evidence already had turned up that his economic rescue plan would improve the lives of American workers.

Three times during the day, the White House asserted that Caterpillar Inc., the giant maker of construction and other equipment that has recently laid off workers, would be able to rehire employees if Congress approved the stimulus bill.

But as the president prepared for a Thursday trip to visit a Caterpillar plant in East Peoria, Ill., it was not clear how strong an example the company would provide of the job-creating powers of the bill.

USA Today, “Stimulus fight gives Obama lessons early“:

Peoria Journal-Star, “Welcome, Mr. President“:

President Barack Obama will hold a meeting with workers at the Caterpillar Inc.’s Building HH in East Peoria on Thursday to discuss the American Recovery and Reinvestment Plan.

The president’s arrival, departure and meeting with workers will be closed to the public.

3 p.m.: Arrival at the Air National Guard 182nd Airlift Wing at the Gen. Wayne A. Downing Peoria International Airport

3:25 p.m.: Meeting with Cat workers at Building HH, 901 W. Washington Ave., East Peoria

5:45 p.m.: Departure from the Air National Guard

Peoria Journal-Star, “Our View: From Abe to Obama, the circle closes in Peoria”

Washington Examiner, “Obama uses Caterpillar to push stimulus plan“:

President Obama chose a Northern Virginia construction site on Wednesday to personalize the stakes of the stimulus plan, saying its passage would give back jobs to laid-off Caterpillar workers.

The company “has announced some 20,000 layoffs in the last few weeks,” Obama said, adding that Chairman and CEO Jim Owens “said that if the [stimulus] passes, his company would be able to rehire some of those employees.”

Jim Geraghty, National Review Online, “If You Want to Quote Caterpillar, Mr. President . . .”: “Say, President Obama, perhaps you ought to also pay attention to what the company is saying about the “Buy American” provisions in the legislation.”

From the Peoria Journal-Star:

PEORIA — President Barack Obama is tentatively scheduled to stop in the Peoria area and visit a Caterpillar Inc. facility while in central Illinois on Thursday.

While there’s been no official announcement from the White House about the visit, White House press secretary Robert Gibbs told media members aboard Air Force One on Monday that Obama would stop in Peoria and visit a Caterpillar plant.

It would be the third visit in just more than two years by a sitting U.S. president, including the second one to Caterpillar. Former President George W. Bush visited a factory in East Peoria on Jan. 30, 2007, to give a speech about free trade.

Excellent decision, a stop at a manufacturer that has made cutbacks because of the global recession, including major declines in mining and construction around the world. Nevertheless, Caterpillar remains a case study of why exporting is good for the U.S. economy, and the company has been a strong advocate of free-trade agreements with countries like Peru, Colombia and Panama. The company has been a vocal opponent of “Buy Americans” restrictions in the stimulus bill that could — at least in an earlier form — spark a global wave of protectionism.

President Obama’s trip follows last Friday’s announcement that Caterpillar’s chairman and CEO, Jim Owens, will serve on the President’s Economic Recovery Advisory Board.

In any case, glad to see that President Obama is making a manufacturer one of his early stops during his Administration. It’s definitely appreciated.

* An op-ed in the Chicago Tribune by Jim Owens, “Protection provisions could kill U.S. jobs”

President Obama creates the Economic Recovery Advisory Board, saying:

Put simply, I created this board to enlist voices to come from beyond the Washington echo chamber, to ensure that no stone is unturned as we work to put people back to work and get our economy moving.

Within this group, you’ve got leaders of manufacturing and leaders of finance. You’ve got labor and you’ve got management. You’ve got people who work in small businesses and people who work in large businesses. You’ve got some economists and some folks who think they’re economists. (Laughter.) By the way, these days everybody thinks they’re an economist. (Laughter.) We will meet regularly so that I can hear different ideas and sharpen my own, and seek counsel that is candid and informed by the wider world.

On the manufacturing side, Jeffrey R. Immelt, CEO of General Electric, and Jim Owens, Chairman and CEO, Caterpillar Inc.

A welcome announcement…

NBC Nightly News this evening carried a report on Peoria, Illinois, where manufacturers are adding jobs. The thesis of the story is that businesses are learning from past mistakes and doing things differently. Doug Parsons, CEO of Excel Foundry and Machine, comments to the point, “Never get too dependent on one customer, one industry, one product line – you constantly need to be reinventing yourself.” NBC reporter Janet Shamlian notes the company now ships a third of its products overseas.

The workforce issue is also touched upon as Jeff Bahnsen of Foremost Industrial Technologies, a machine shop, says they’re looking to hire people.

Yet the story is so sketchy as to be fundamentally misleading. Shamlian refers to Peoria as “what used to be a one-company town” and calls the area “an unlikely pocket of prosperity.” Peoria has added more jobs this year than any other region in the state, she says.

Caterpillar. Peoria is home to Caterpillar. With all due credit to all the fine companies and manufacturers featured in the story, how can you do a report about Peoria’s economy without naming Caterpillar, a company whose exports rose 20 percent in 2007? NBC also referred to Excel’s export success. We suggest there might be a connection — strong manufacturing exports have encouraged economic growth making Peoria a very likely pocket of prosperity, indeed.