Resource Industries

As we enter into a new year that looks to be as challenging as 2012, it's important that we not forget just how far we've come in Resource Industries. We have had many remarkable accomplishments, and I would like to take the opportunity to mention a few. The integration of Bucyrus is going very well and is delivering our commitments made to our customers and stakeholders. On-time shipping performance from our plants is more than 85 percent compared to less than 40 percent five years ago. We've expanded and modernized our machine and component manufacturing plants all around the world, making our manufacturing facilities world class.

New startup facilities in Asia separate Caterpillar even more from competition with the largest, most modern and global manufacturing presence in the mining industry. The showcase of all our new products, technologies and solutions at MINExpo was a powerful example to our customers that we take our leadership in the mining industry very seriously.

Our diversified businesses continue to respond to a difficult and uncertain business climate, particularly in our Forest Products, Tunneling Products and Paving Products businesses. Our new Industrial & Waste strategic business is providing the necessary focus to this important segment. And, our Defense & Federal Products, OEM Solutions and Work Tool businesses are performing exceptionally well, making important contributions to the enterprise.

Product quality has improved tremendously, continuing the legacy that's been our foundation for more than 85 years. We continue to successfully invest and deploy the Caterpillar Production System (CPS) with all of our newly acquired plants from South Milwaukee, Wisconsin, to Thiruvallur, India, which is leading the pack in manufacturing excellence. The component business has been equally successful with improved delivery performance, and the investments in our product technology strategy and Tier 4 deployment continue to differentiate us, providing greater value to our customers today and into the future. Most importantly, we've seen outstanding improvement in employee safety over a 10-year journey. We are pleased with our progress, but recognize we still have a long way to go to reach Vision Zero.

Throughout 2013, Resource Industries will have to be flexible, but there is one constant and that is this … our team of dedicated employees always delivers, no matter the challenge.