Caterpillar Executive Speaks to Industry Leaders at
National Trade Meeting
Taylor Examines the Global Engine, Ramifications of Vertical Integration, Harmonization

George Taylor, director and general manager for Global On-Highway Business at Caterpillar, was a featured speaker at the afternoon session on January 22 for the Heavy Duty Manufacturers Association's (HDMA) Heavy Duty Dialogue '07 in Las Vegas, Nev.

With 23 years of business experience developing and marketing business solutions to Fortune 100 marketing industry companies, Taylor discussed the North American economy and the North American on-highway forecast from Caterpillar. Taylor also reviewed some of the critical issues driving the on-highway market, including harmonization, emerging markets, vertical integration and technical development. Finally, he discussed how globalization has been driven by customers' needs and how a global company like Caterpillar manages this issue with the multitude of different products and services provided to customers worldwide.

Taylor's remarks took a closer look at each issue and asked the audience to consider these questions: What's driving the issue? What's in it for the business? What's in it for the customer?

Regarding harmonization, Taylor discussed how a merging of the commercial vehicle standard for emissions, safety and vehicle configuration could be beneficial to the entire industry. On the subject of vertical integration, Taylor suggested that while the industry may be moving in that direction, there could be better solutions. He indicated that North American heavy duty customers continue to prefer a choice in major components-and pointed out that more than 60 percent of today's heavy duty engines are manufactured by independent engine suppliers.

Due to the major technology development needed, as well as the cost to meet the ever-changing emissions standards, Taylor suggested that rather than vertical integration, "virtual integration"—defined as OEMs and component manufacturers working as one—could provide a better value to both OEMs and customers going forward.

Before closing, Taylor discussed Caterpillar Vision 2020—the Caterpillar mission designed to take the company to $100 billion in sales by the year 2020. This strategy involves technology innovation, product quality, product availability, integrated solutions and consistent product support anywhere in the world customers use Caterpillar products.

Finally, Taylor complimented the industry for the way OEMs, component manufacturers and customers have dealt with the ever-changing emissions standards over the last several years and how the trucking industry was chosen to lead all commercial markets in the process to make commercial vehicles more environmentally friendly.

About The Heavy Duty Manufacturers Association (HDMA): HDMA was established in 1983 to meet heavy duty product manufacturers' need for a national association dedicated to their specific interests. HDMA is the only organization in the heavy duty sector today dedicated exclusively to heavy duty manufacturers. Everything HDMA does—from market research to government representation—is driven solely by the best interests of manufacturers.

The HDMA membership is made up of companies in the classes 4-8 medium and heavy duty truck original equipment and aftermarket parts manufacturing industry. These members represent every segment of the heavy duty market—from components, service and repair equipment and tires to chemicals, lighting and accessories. Visit www.hdma.org for more.

Issue 50 02/12/07
To learn more about Caterpillar On-Highway Engines, please visit:
http://www.cattruckengines.com/.