Last week Caterpillar’s stock buyback plan for the next five years got extensive coverage in financial websites, personal and professional blogs. I won’t be diving into details, however this article states that company’s bullish outlook is mainly driven by its remanufacturing business. Over the years, CAT has done a lot to improve its business using remanufacturing as a competitive edge, and in my opinion, CAT was very successful in doing so. CAT invested in organizational, financial, market-oriented improvements in remanufacturing. They actively pursued collaborations and investments in overseas to expand their market, they formed a separate Reman Division, and they announced buyback of 7.5 billion stocks over the next five years. They evoked great interest in different media outlets, but CAT's all these efforts also had a very positive effect in getting the word out for “remanufacturing” in general. You can read the article here. Our closing remark is from David Fried, the editor of Buyback Letter:
“Now, we have a new suggestion for a single word that is going to transform the way business is done in the future: remanufacturing. And the world’s largest remanufacturer is Caterpillar ."
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