Glen Barton, former Caterpillar Inc. Chairman and CEO, died on October 24, 2016 in Peoria, Illinois

Glen Barton, August 1939 - October 2016

Glen Barton, August 1939 – October 2016

Glen Barton, former Caterpillar Inc. Chairman and CEO, died on October 24, 2016 in Peoria, Illinois, at age 77. Barton retired in 2004 after nearly 43 years of Caterpillar service, spending the last five as Chairman and CEO.

“The Caterpillar family is extremely saddened by Glen’s passing,” said Caterpillar Chairman and CEO Doug Oberhelman. “Glen’s legacy of leadership extends far beyond Caterpillar’s walls. His commitment to Peoria and our communities was remarkable. I’ll start with his Caterpillar leadership. He rose through the Caterpillar ranks, starting in 1961 as a college graduate trainee. Under his leadership, Caterpillar fully embraced 6 Sigma. It brought remarkable improvements throughout the company, including an intense focus on quality and safety. We continue that focus today, and 6 Sigma remains our foundation for continuous improvement. We are forever indebted to him for his commitment to making Caterpillar a stronger company.

“And just as important is his unprecedented generosity to the Peoria area. Glen’s dedication and hard work will continue to leave a positive impact for many, many future generations. Together with his wife Polly, Glen was the epitome of philanthropic leaders. He was the driving force behind Quest Charter Academy and a tireless leader and supporter of the Peoria Zoo, the Peoria Playhouse, WTVP and Illinois Central College. Our deepest condolences are extended to Polly and the entire Barton family.”

Barton joined Caterpillar in 1961 and held numerous marketing and general management positions. After two tours with Caterpillar Overseas S.A. in Geneva, Switzerland, where he served in various marketing capacities from 1964 to 1968, and from 1972 to 1975, Barton became manager for South American Sales. In 1977, he became manager of Merchandising Division General Offices. Barton moved to Mentor, Ohio, in 1983 to become the U.S. sales and product support manager for the industrial lift truck division of Caterpillar. From 1984 through 1986, he was manager of Products Control, involved in product development and strategic planning. In 1987, he was elected a vice president of Caterpillar and president of Solar Turbines Incorporated, a wholly owned Caterpillar subsidiary in San Diego, California. In 1989, he became executive vice president with responsibility for worldwide marketing. Effective July 1, 1990, Barton became group president with responsibility for the design, development and production of most of Caterpillar’s extensive line of forest, mining and construction equipment. His responsibilities also included marketing and sales operations in North America, South America, Latin America and Japan. On February 1, 1999, he was named Chairman and Chief Executive Officer.

Barton, a native of Alton, Missouri, graduated from the University of Missouri-Columbia in 1961 with a bachelor’s degree in civil engineering. He completed the Stanford University Executive Program in 1977. He previously served on the Dean’s Engineering Advisory Council at the University of Missouri-Columbia and the boards of directors for Inco Limited and Newmont Mining Corporation. He was also a global advisor to The Conference Board and a trustee of the Malcolm Baldrige National Quality Award Foundation. Barton also served as a member of the Business Roundtable, the Illinois Business Roundtable and the U.S. President’s Export Council.

In 2012, Glen was recognized for helping pave the way for the company’s leadership in the global mining industry with his induction into the National Mining Hall of Fame. The Hall of Fame credits Barton with the foresight to more heavily involve Caterpillar in mining: “Glen Barton’s passion changed the mining industry. His leadership made Caterpillar the world’s leading provider of mining equipment by creating the roots that support the organization today.”

Four Students Take Top Honors in 6th Annual National Video Contest on America’s Transportation Infrastructure

0bfbaaaf-135e-44c9-b056-688a1a82534aHigh school students from Washington state and Massachusetts, an undergraduate at New York University and a graduate student at Carnegie Mellon were all named winners of the American Road & Transportation Builders Association’s (ARTBA) 6th annual “Student Transportation Video Contest.” The selections were announced during the Oct. 4-6 ARTBA National Convention, held in Tucson, Ariz. They will each receive a $500 cash prize.

The association received 30 entries this year in two categories, general transportation and a new safety category. Sponsored by ARTBA’s Research and Education Division (RED), the contest aims to raise awareness about infrastructure issues by challenging students to develop a brief video exploring various topics relating to America’s transportation network. Submission topics ranged from funding the Interstate Highway System, developing public transit, transportation innovation, infrastructure for cyclists, distracted driving, and autonomous vehicles.

The competition was advertised on college scholarship websites, posted on online video contest sites, shared with Council of University Transportation Centers (CUTC) members and high schools that focus on Science, Technology, Engineering and Math (STEM). It was also shared on ARTBA’s social media accounts. Submissions were reviewed and winners selected by a panel of ARTBA members.General Transportation Category

Age Group One (Elementary, Middle or High School Students)

Josh Jaffe, Seattle Academy, Seattle, Wash.

Jaffe is an 11th grader at Seattle Academy. His video discusses the need to further develop the city’s public transit system to accommodate a growing population, making suggestions to expand and repair current infrastructure to access more communities.

Age Group Two (Post-Secondary/College/Graduate Level)

Timothy Gersten, New York University, New York City

Gersten, a film and television major at NYU, describes in his video how infrastructure is financed through  the federal gas tax. He mentions how lagging funding leaves roadways and bridges significantly deficient, and suggests further investment to renew, promote sustainability and develop infrastructure plans.

Safety Category

Age Group One (Elementary, Middle or High School Students)

Christopher Pomeroy, Hopkinton High School, Hopkinton, Mass.

Pomeroy’s video discusses the need to incorporate more autonomous vehicles on the road to improve safety for all drivers and reduce road accidents. He is an 11th grader at Hopkinton High.

Age Group Two (Post-Secondary/College/Graduate Level)

Abdi Musse, Carnegie Mellon University, Pittsburgh, Pa.

Musse is a graduate student at Carnegie Mellon’s Human-Computer Interaction Institute. His video focuses on the need to improve work zone safety conditions to prevent accidents and deaths. It promotes avoiding distracted driving by limiting phone usage and obeying work zone signage.

Established in 1902, Washington, D.C.-based ARTBA is the “consensus voice” of the U.S. transportation design and construction industry before Congress, federal agencies, the White House, news media and the general public

Wells Fargo Reports: Housing Starts Plunge Unexpectedly in September

e3aadcc2-c3c9-49d6-8b85-87e4ca28edd5_wfs_logo_20_gradientFollowing a sharp decline in August, housing starts fell to its lowest level since early-2015 in September. The decline was concentrated in multifamily, while single-family rebounded. Permits jumped 6.3 percent.

Headline Starts Falter, but Permits Point to Gains

  • Consensus estimates projected a partial reversal in housing starts in September following a sharp decline in August. That said, housing starts tumbled 9.0 percent in September to a 1.047 million-unit rate. However, all of the weakness was concentrated in multifamily, which fell 38.0 percent during the month, while single-family rose 8.1 percent. Strength in purchase applications and permits suggest continued gains.

Builder Sentiment Still on Track

  • Housing permits, which typically lead housing starts and are far less volatile, rose a solid 6.3 percent. With the level of permits running ahead of starts, we expect starts to pick up in the coming months. Although builder confidence retreated in October, the trend still suggests upward momentum in single-family construction. The NAHB/Wells Fargo homebuilders’ survey rose to 62.3 on a three-month moving average basis.

Housing Starts Tumble Unexpectedly in September Housing Starts Tumble Unexpectedly in September Housing Starts Tumble Unexpectedly in September Housing Starts Tumble Unexpectedly in September

Caterpillar Chairman and CEO Doug Oberhelman Elects to Retire in 2017; Jim Umpleby Elected as Caterpillar’s Next CEO; Dave Calhoun to Become Non-Executive Chairman of the Board

After more than 41 years with Caterpillar Inc. (NYSE: CAT), Chairman and CEO Doug Oberhelman has elected to retire, effective March 31, 2017. During his time as Chairman and CEO, Oberhelman has reinvigorated the company’s focus on serving customers while also driving a culture of quality and safety. Oberhelman led the company to its highest sales and revenue peak in its 91-year history in 2012, and, since that time, has successfully led the company through the unprecedented downturn affecting our key industries.

During Oberhelman’s tenure:

Product quality levels have reached historically high levels.
Market position for machines has significantly increased.
New Lean Management processes have simplified and sped production capabilities, improving product availability for dealers and customers.
The company has increased its quarterly dividend by 83 percent since 2010.
The balance sheet is strong, and at the end of the second quarter of 2016, Caterpillar’s Machinery Energy & Transportation debt-to-capital ratio was 39.0 percent, with $6.764 billion in cash as of June 30, 2016.
Global safety metrics for employees have dramatically improved, with the Recordable Injury Frequency improving each year.

After more than 41 years with Caterpillar Inc., Chairman and CEO Doug Oberhelman has elected to retire, effective March 31, 2017.

After more than 41 years with Caterpillar Inc., Chairman and CEO Doug Oberhelman has elected to retire, effective March 31, 2017.

Caterpillar has been granted nearly 7,300 patents worldwide.
The company dramatically expanded its commitment to lower owning and operating costs for customers by connecting new and existing equipment through digital technology and data analytics.
“Our people have heard me say many times that my greatest responsibility as Chairman and CEO is to manage Caterpillar for today and position the company and its future leaders for long-term success,” Oberhelman said. “It has been an honor and a privilege to lead this company, and I am confident in the choice of my successor, Jim Umpleby.”

“During the last four years, Caterpillar has faced unprecedented global economic conditions that have significantly impacted the industries served by our customers, as those industries and economic growth in many regions around the world have slowed or severely contracted. Faced with these challenges, our employees have responded like champions. We have improved our market position and grown our field population. Our product quality is at historically high levels, and I believe we are leading the industry in digital capabilities. I am confident that Caterpillar is stronger than ever, with product quality, power, technology and innovation that is the envy of our competitors. Add to that lean and agile manufacturing capabilities and an unrivaled global distribution channel. The future is bright,” Oberhelman added.

After more than 41 years with Caterpillar Inc., Chairman and CEO Doug Oberhelman has elected to retire, effective March 31, 2017.
The company’s Board of Directors has elected Jim Umpleby, currently a Caterpillar Group President with responsibility for Energy & Transportation, to succeed Oberhelman as CEO. Umpleby, a 35-year veteran of the company, will join the Caterpillar Board of Directors and become CEO effective January 1, 2017. He joined Solar Turbines Incorporated in San Diego, California, in 1980. Solar, a wholly owned subsidiary of Caterpillar Inc., is one of the world’s leading manufacturers of industrial gas turbine systems. Early in his career, he held numerous positions of increasing responsibility in engineering, manufacturing, sales, marketing and customer services. Umpleby lived in Asia from 1984 to 1990, with assignments in Singapore and Kuala Lumpur, Malaysia. The Caterpillar Board of Directors elected Umpleby a Caterpillar Vice President and President of Solar Turbines in 2010. He was named Group President and a member of Caterpillar’s Executive Office, effective January 2013.

“For more than 91 years, Caterpillar equipment has been renowned for its quality, durability, innovation and value,” Umpleby said. “I have been privileged to work with Caterpillar employees and dealers in supporting our customers as they develop the world’s infrastructure and improve standards of living and quality of life. I look forward to leading our dedicated team as we build upon the accomplishments of those that have come before us.”

Jim Umpleby, currently a Caterpillar Group President with responsibility for Energy & Transportation, will succeed Doug Oberhelman as Caterpillar Inc. CEO, effective January 1, 2017.
Oberhelman will remain as Executive Chairman of Caterpillar until March 31, 2017, when he will retire. Upon Oberhelman’s retirement, Dave Calhoun, a current member of the Caterpillar Board,

Jim Umpleby, currently a Caterpillar Group President with responsibility for Energy & Transportation, will succeed Doug Oberhelman as Caterpillar Inc. CEO, effective January 1, 2017.

Jim Umpleby, currently a Caterpillar Group President with responsibility for Energy & Transportation, will succeed Doug Oberhelman as Caterpillar Inc. CEO, effective January 1, 2017.

will assume the role of Non-Executive Chairman of the Board. Calhoun is Senior Managing Director and Head of Private Equity Portfolio Operations of The Blackstone Group L.P.

Ed Rust, former Chairman and Chief Executive Officer of State Farm Mutual Automobile Insurance Company, and currently Presiding Director of the Caterpillar Board, will remain on the Board, but will no longer hold the title of Presiding Director once Calhoun assumes the role of Non-Executive Chairman.

“The Board has a robust, best-in-class succession planning process for the critical roles of Chairman of the Board and Chief Executive Officer as well as other top executive positions. One of our top priorities as a Board is developing a strong pipeline of senior leaders. Discussions are held throughout each year, and today’s announcement is the result of these ongoing and deliberate Board discussions,” Rust said. “I am certain Jim will continue the superb leadership, which is the hallmark of Caterpillar, in the years to come. I especially want to thank Doug for his strong and outstanding leadership of the company throughout his tenure, particularly in the last four years, when the global economic environment has created unprecedented challenges for Caterpillar. We wish Doug all of the best for a successful retirement following a distinguished and successful 41-year career.”

Calhoun has been a member of the Caterpillar Board of Directors since 2011. In addition to his role with the Blackstone Group, he was previously Executive Chair of Nielsen Holdings N.V. (2014-2015), served as Chairman of the Executive Board and Chief Executive Officer of

Jim Umpleby, currently a Caterpillar Group President with responsibility for Energy & Transportation, will succeed Doug Oberhelman as Caterpillar Inc. CEO, effective January 1, 2017.

Dave Calhoun, a current member of Caterpillar Inc.’s Board of Directors, will assume the role of Non-Executive Chairman of the Board, effective March 31, 2017.

The Nielsen Company B.V. (2006-2013), Vice Chairman of General Electric Company and President and Chief Executive Officer of GE Infrastructure (2005-2006).

“I am honored to take on these new responsibilities with Caterpillar, an iconic and global leader,” Calhoun said. “Following a deliberate succession process, the Board confidently elected Jim as Caterpillar’s next CEO. He reflects the best attributes of Caterpillar’s culture and leadership. I also want to compliment Doug for his outstanding leadership as Chairman and CEO, as the capstone to more than four decades of service. His leadership in the last four years has been remarkable as the company has successfully navigated an incredibly difficult cycle while positioning Caterpillar to take full advantage of the next upturn.”

A replacement for Umpleby will be announced at a later date.

About Caterpillar
For 91 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2015 sales and revenues of $47.011 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment. For more information, visit To connect with us on social media, visit

ABC Reports: Construction Input Prices Begin to Trend Higher

1291931467352794367Both nonresidential and overall construction input prices increased in September, with natural gas and crude petroleum prices bouncing back, according to analysis of the U.S. Bureau of Labor Statistics (BLS) Producer Price Index released today by Associated Builders and Contractors (ABC). The BLS data show that nonresidential input prices expanded 0.3 percent on a monthly basis in September, and overall construction prices also rose 0.3 percent on a monthly basis after declining 0.2 percent in August.

It is important to note that nonresidential input construction prices are now higher on a year-over-year basis for the first time since November 2014. Just four of the 11 key nonresidential construction input prices declined on a monthly basis, and only one—nonferrous wire and cable—experienced a year-over-year decline.

“The rise in material prices both on a monthly and year-over-year basis is not good news for U.S. nonresidential construction firms,” said ABC Chief Economist Anirban Basu. “For roughly two years, declining energy prices had wrung much of the inflation out of the economy, allowing interest rates to remain low and the Federal Reserve to remain fixated on guiding the nation toward full employment. Energy prices are no longer falling. Moreover, wage and healthcare inflation are building, which could drive interest rates higher next year. That scenario is not good for real estate valuations and nonresidential construction.

“Additionally, many contractors note that buyers of construction services continue to relentlessly pursue lower construction charges, even though many contractors are quite busy,” said Basu. “Labor and other costs are going up, and this has a tendency to squeeze margins. To the extent that materials prices begin to rise more forcefully, this could further compress nonresidential construction margins.

“The challenge for many contractors is to pass materials costs increases along to users of construction services in an effort to sustain margins,” said Basu. “Evidence suggests that this was not a major issue for construction firms prior to the Great Recession, but purchasers of construction services are now much less likely to accept significant cost inflation. The good news is that with the U.S. dollar strengthening recently, sharp month-over-month increases in many construction materials prices are unlikely in the near term.”

September Construction Input Prices

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