FIRST AIRED: May 23, 2018

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Transcript

00:00:01
>> There's a dilemma on industrial factory floors across America, like the ones operated by Caterpillar and its suppliers. Demand is booming for Caterpillars heavy duty, earth moving, equipment that's sold all over the world, but as Reuters manufacturing correspondent Tim Aeppel has learned by speaking to Caterpillar executives and more than half a dozen Caterpillar suppliers, there's a lack of confidence these good times are going to last.
00:00:27
>> What's happened for the suppliers they're very hesitant to expand, because we're so late in this expansion that they're concerned that they have the same concern that Caterpillar has, they don't want to hire people, build new plants, buy new equipment if the next downturn is just around the corner.
00:00:46
And then they'll be the ones stuck.>> That means they're staying away from the carefree spending spree PResident Donald Trump was hoping for with his $1.5 trillion tax cut. It's creating a supply chain problem. Caterpillar is not getting enough parts from suppliers to fill its surging orders. And even if suppliers wanted to build more factories to keep up with the demand, there's another issue, a super tight labor market.
00:01:11
>> When the jobless rate drops, it becomes tougher and tougher for these companies to attract especially workers who are gonna have the skills and capabilities in an economy where we have fewer and fewer people floating around that have gotten to start manufacturing that no auto work machinery.>> And without more experience hands to build things and the reluctance to invest in new factories and equipment, the situation at Caterpillar may explain why the industrial sector is likely to put a chill on Trump's attempts to heat up this economy.