How to Save American Business

The Raw Materials Shortage and Global Warming

As you know, we face a serious raw materials shortage that's likely to get worse as the economies of countries like India and China continue to grow. In the past year alone, the price of steel has more than tripled, from 15c a pound in October 2003 to 46c a pound in October 2004. Meanwhile, you've taken a lot of flak for refusing to sign the Kyoto Protocol without proposing any alternative plan to reduce emissions of carbon dioxide and other heat-trapping greenhouse gases. You've said you were concerned that such efforts would cost America jobs.

Well, I've got a way for you to kill two birds with one stone: Embrace remanufacturing. Tell business owners they need to come up with ways to recycle whatever they make. The effect will be to reduce pollution, relieve the raw materials shortage, and create jobs all at the same time. The company I work for is living proof of it. As a business, remanufacturing is labor-intensive and environmentally friendly, and it cuts down on our nation's need for raw materials by reusing the materials we have.

I should warn you that other developed nations are ahead of us in this regard. Japanese car manufacturers, for example, already figure out where every tire, rim, and crankshaft will go after their cars die. Last year, the European Union began requiring all automakers to recycle the cars they sell in Europe.

Caterpillar is putting increased emphasis on its remanufacturing business because it sees it as a growth industry. The company melts down and reuses the plastic, steel, aluminum, and copper in its old worn-out equipment. Last year, it began offering that service to other companies. Why can't every business owner follow Caterpillar's lead? Considering that the U.S. is unable to meet its domestic demand for steel in any given year, I'd say that this is an urgent matter.