Business

Caterpillar boosts economy in Athens

February 17th, 2012

At a time when Georgia’s unemployment rate is just below 10%, more than a thousand new jobs are coming to the Northeast part of the state.

Construction equipment manufacturer Caterpillar announced today it will start building a one-million square foot plant in Athens.

“This plant will be about 1400 people,” said Caterpillar Chariman and CEO Doug Oberhelman. “We’ll make the most famous image I think of Caterpillar. That’s our bulldozer.”

The facility will also make excavators. Vehicles will start rolling out of the Athens plant late next year. To lure Caterpillar, the state gave the company up to $45 million in tax credits. Athens area leaders say that’s money well spent.

On paper, Athens may not look like the area in most need of a big job announcement. The University of Georgia provides steady employment for many. The unemployment rate in and around Athens is 7.3%. No other metro area in Georgia has a lower jobless rate.

“But, that doesn’t tell the full story,” said Athens-Clarke County Mayor Nancy Denson.

Denson said many people in her part of Georgia are under employed. Plus, Athens’ manufacturing industry started to take a hit about 20 years ago when textile jobs began to disappear. Also, Census figures show Athens’ poverty rate of 33%. That’s 18% higher than Georgia’s average.

Denson was delighted to find out 70% of the people Caterpillar hires will only need a high school diploma and some free training from the state.

“So, those kinds of jobs have just not been available in our community where someone with a high school education can get a really good job and support their family,” said Denson.

Denson said the average salary in the Athens area is $37,000. That’s less than the average salary the workers will make at the new Caterpillar facility.