Cat Exec 'Very Optimistic' for 2010, Beyond

 As the general manager of strategic services for Caterpillar Corporation, Bill Cook watches minute by minute for signs of normalcy and stability in the markets.

And in his best analysis, he predicts that 2009 will continue to be another difficult year.

It may not be until 2010 or 2011 until the economy bounces back to some sense of normalcy, he told more than 200 business men and women last week at the Valley Industrial Association's annual luncheon.

Cook expressed an urgency for business owners to reinvent themselves and rise above the competition as much as possible.

"Different times create opportunities. Different times separate the winners and losers," Cook said, adding that Caterpillar has always come out stronger from economic downturns happening globally.

He expressed positive comments on the massive federal stimulus package and its effect on Caterpillar's business. The impact of the national Recovery and Reinvestment Act is expected to help boost the construction industry's performance by 6.5 percent, Cook said.

He called the aggressive monetary and fiscal actions taken by the government a positive move for the economy.
"We're very optimistic for 2010 and beyond," he said.

Still, he prefaced many of his comments with statements that the economy will continue to be rocky and uncertain.
But the United States is shaping up to be stronger than other countries in the global marketplace, he said.

In areas like South America and Southeast Asia that have experienced economic meltdowns, actions were not as aggressive by the government; and as a result those economies have yet to return to their former strengths.
 
Some of the main indicators of a rebound or uptick in the economy must come from housing and consumer confidence, he said. Those two indicators nearly operate hand in hand, Cook said.

Currently, housing starts are at their lowest level since World War II and are expected to fall this year, Cook said.

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