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Fact check: Is Caterpillar moving its operations to Canada
1. Summary of the results
Based on the analyses provided, Caterpillar is not moving its operations to Canada. In fact, the evidence shows the opposite trend occurring. Caterpillar closed its London, Ontario plant and relocated operations to the United States [1]. The company shut down its Electro-Motive plant in London, Ontario, citing unsustainable cost structures and failed labor negotiations [2] [3].
Caterpillar relocated its 62-year-old Canadian plant to Indiana, taking advantage of significantly cheaper non-union labor with hourly wages ranging from $12 to $18.50, compared to the $34 average hourly wage in Canada [4]. Meanwhile, the company has been expanding operations within the United States, including projects in Lafayette, Indiana [5] and Lebanon, Indiana, where new warehouse operations are creating hundreds of jobs [6] [7].
2. Missing context/alternative viewpoints
The original question lacks crucial context about Caterpillar's recent history of plant closures in Canada. The company's decision to close its London, Ontario operations was met with significant backlash from Canadians, including boycotts of Caterpillar products such as work boots sold by Mark's [8].
The economic motivations behind Caterpillar's decisions are clear: the company cited unsustainable cost structures in Canada and the union's refusal to accept a 50% pay cut as reasons for closure [3]. This represents a broader trend of manufacturing companies seeking lower labor costs, with Caterpillar benefiting from non-union labor in Indiana that costs roughly one-third of Canadian wages [4].
Caterpillar shareholders and executives would benefit from this narrative of cost reduction and operational efficiency, while Canadian workers and communities have been negatively impacted by these closures. The company has instead focused its North American expansion efforts on U.S. locations, particularly in Indiana.
3. Potential misinformation/bias in the original statement
The original question appears to contain a fundamental factual error. Rather than moving operations to Canada, Caterpillar has been doing the exact opposite - closing Canadian facilities and moving operations to the United States. This could represent either misinformation or a misunderstanding of recent corporate developments.
The question may reflect outdated information or confusion about Caterpillar's actual business strategy. The evidence consistently shows that Caterpillar has been consolidating operations in the United States while closing Canadian facilities, making the premise of the original question factually incorrect based on recent corporate actions and announcements.