Difficult times can lead to innovative change: Caterpillar looks to the future

"Ed Rapp is among those who believe in the saying that necessity is the mother of all invention. Rapp is the president of Caterpillar’s mining group. As such, he is tasked with leading the world’s largest mining equipment maker, and its customers, through this time of lower commodity prices, while also positioning his company to be prepared for better days that lie ahead.The decade-long mining boom fueled by growth in emerging markets and demand for commodities that led to record prices for some metals paused in 2008 with the global financial crisis. However, according to Rapp, thanks to stimulus packages around the world, and in particular the stimulus from China that was focused on infrastructure, the mining sector recovered fairly quickly, and from 2010 to 2012, mining was strong.And then the stimulus stopped. Credit dried up and global growth began to slow down and, in the three years since, commodity prices have declined by an average of 60 percent. Caterpillar expanded during the boom, acquiring Bucyrus, and investing billions into the mining sector. It has felt the pinch of the slowdown as much as any mining company in the world. These pages, and those of other mining publications as well as mainstream media, have been filled with stories of doom and gloom about the industry. But Rapp, while acknowledging that the difficult times have been painful, also said Caterpillar sees opportunity in the slow down and reaffirmed his company’s commitment to the mining industry as absolute."