Caterpillar is expanding production capacity across the world right now. And it's bypassing its usual midwestern locations for the south and Texas. However, like many other manufacturers, it is now spending close to a million dollars for every new job created.
Its new axle facility in Winston-Salem, NC will require $426 million of capex, and is expected to produce 500 jobs across the 850,000 square foot site. Average wages are expected to be $40,500 plus benefits once the facility opens in 2012. This means about $22 million in new non-benefit wages a year. Therefore, with inflation it will likely take at least 15 years until the company's outlays for manufacturing wages match what it will spend building the plant.