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Part of my business and are now the Labor Department just releasing brand new weekly jobless numbers you ready.
Time unemployment claims were filed last week that's down.
From the week before and less than expected so slightly better news.
I'm here to react to these numbers as Peter Celek.
Feel like I've known you forever because yes -- -- -- -- -- right and stuff Peter good to see this morning what do you make of these numbers down from 367 to 339.
Obviously good news for the Obama administration.
Well very clearly.
We're still concerned about employment this country and we're we're not where we need to be and there's a tremendous amount of uncertainty.
We've announced a major project in North America were investing 750 million dollars to expand an existing first -- tire plant and build a brand new one.
But a lot of companies are sitting on the sidelines right now because they just don't know what the tax rates are going to be next year they don't know what the economic situation of the muddies the air you'll also -- just people aren't investing.
Exactly right I think that they they know that there we have a big opportunity because we have a large advantage in our technology is a tremendous demand for -- -- who retires.
But a lot of people are -- as you say on the sidelines today birth who -- he's -- -- -- on mining and construction equipment.
We actually are building a plant in expanding an existing plan both in South Carolina.
80% of what we make an -- who retire capacity there is exported outside the United States and so if you're building earth mover tires -- and caterpillar tires and stuff like that obviously you're optimistic about the future.
But when you look at the number of people who have unfortunately dropped out of the job market it it's heartbreaking that so many people have been unable find jobs in the last four years.
It is it is and and we we look at it looking at the 22000 people that we employ North America today.
During 2012 were actually hiring 15100 people 500 people for these new projects and about a thousand folks to replace attrition and our company.
The average tenure of -- 22000 employees in Michelin is 24 years so a lot of them are getting near the end of their career isn't for -- regular folks to replace them.
How is how is the obamacare as -- -- called.
Impacting your company because you were talking about the great uncertainty facing a lot of businesses in particular small businesses have been impacted greatly -- it impacting you it Michelin.
Health care costs are still a major problem for any corporation running in in north American in the United States.
It's -- the Affordable Care Act we're looking for the affordable part.
I have what we we don't see a slowdown in inflation -- -- prices are going operate in the medical costs are still going up and they're going up still at a very alarming -- -- The -- question that I have I think is that.
If you say that you're creating more of these tires then are we to believe that construction will be on the comeback in America to.
Well as I said 80% of what we're gonna be manufacturing in these two plants making -- who retires in South Carolina in 80% will be exported.
So were were looking at the growth in Canada rookie of the growth of mining.
In South America and Australia which is primarily for the emerging markets and even if there is a worldwide slowdown which could occur.
There are a lot of these mining companies that are looking to use these large tires to put on larger pieces of equipment to improve their productivity we saw no slowdown at all.
When he came to mining worth we're retired as a manufacturer what would you -- about the certain.
-- -- would you like to see when -- -- comes in would you like to see happen to be able to keep more.
Well very clearly the biggest threat facing -- in facing any company right now is this uncertainty.
We have about a twelve month window -- his corporate tax cut would you like to see.
Well that that's all part of it but but the biggest threat beyond the corporate tax rate is just the fiscal imbalance we have to do the fact that we're taking in 2.5 trillion revenue.
And we're spending three point seven.
Your families can't sustain that our businesses can't sustain that the government can't sustain that so the new president whoever is elected.
Is gonna get in there on the point person January's interfaces for the new congress to they're gonna have to deal with -- now they can't do like it did last year -- they can't continue to kicked down the road.
It's gonna hurt it's gonna is gonna -- -- par sacrifice on the part of corporation on the part of individuals.
But the remarkable thing about this is despite the sacrifice that it will require.
If we are successful in doing that will put this country on a brand new trajectory for economic growth over the next ten years which will really be tremendously -- just lets see a path to fiscal sanity you don't necessarily need to see it tomorrow.
Exactly -- -- is the trajectory yes it's making the decisions of the gradually we can we can get everything rebalance and we can start moving Ford that's for the financial markets are looking for.
If the financial markets are not satisfied with a solution that comes -- interest rates are gonna shoot up and with sixteen trillion dollars in debt.
A new economy we'll just completely punch you know you don't look anything like the Michelin Man but do you -- Actually the Michelin Man a guy who heads of Michelin North America.
Pete Celek thank you very much for dress like today thanks so much for a real pleasure thank you sir I need your group retires and -- you -- at the shop okay.
The problem I.
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