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Volvo Construction Equipment global CEO Pat Olney breaks down the importance of infrastructure spending to business.
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-- is it negative thing.
Swedish company Volvo investing in America committing 100 million dollars to the expansion of -- plant.
-- -- mark Pennsylvania there -- some good news there's Robert -- on their today Robert.
Hey Connell thanks so much that went -- -- is -- had a Volvo's global construction equipment business pat thanks for joining us here we see.
Road graders being built behind us here they start about a 150 grand apiece.
And we were just talking about the highway bill that's in congress right now -- taking up next week how important is this tens of billions of dollars in hot infrastructure spending to your -- Us going forward here -- vital for a couple of reasons.
First and foremost.
It creates jobs in our industry creates jobs in America second of all.
It helps us be productive working here in America because the infrastructure around us is putting.
A significant drag on efficiency -- productivity moving goods and services in this country today.
-- well let's move on down the line a little bit here we conceived and -- see sort of the finished product -- -- the wheels on right every here on this greater says it gets to the end of the line so to speak and talk to us about.
What you're seeing in terms of the economy here yeah we've seen some slowdown at some of the recent.
Economic data from the mid Atlantic region are you concerned the US economy may be slowing even as your hundred million dollar expansion -- 130 million dollar total expansion.
It's just getting finished so we saw great growth in the first quarter doubled sales but I would say it's cautious optimism.
And it's still -- Giles slow recovery so again investments and infrastructure -- -- could really help drive.
Our market forward and sustain this recovery.
You mentioned gobbling -- of your sales here in North American the first quarter but at the same time China shrank by 26%.
There's a lot of concern about a slowdown in China what are you seeing on the ground from your factories there.
Well we saw the market down 46% in first quarter but for us our revenues were flat year on year and that's because we grew market -- bill and solidified our business in the first quarter.
What I would say is such -- -- as a manage slowdown right now China's in the middle of its own massive infrastructure.
Investment and is fighting inflation and taking steps to slow things down but we're looking to see some growth -- medium to long term again.
And of course a -- market as Sweden and -- in Europe we know all about economic woes in Europe.
Is part of -- investment thesis here.
A currency hedged we've seen the dollar weakened against most of its trading partners making labor cost a lot lower now in the states and they were ten years ago.
Talk to us about -- -- -- for being based in the US while the investment here is primarily because this is a home market for us we've been in North America for decades.
And we have the philosophy we should design and make the products close to our customers given shorter lead times and that's part of the driver really for the investment for us here.
Do you have any concerns here about that corporate tax rate is one of the highest in the world to offsetting some of the currency savings and shipping costs.
I don't have any comment about taxes I just try to give a good product to our customers everyday.
IPad only is the -- global CEO for -- Volvo construction equipment but that day -- -- -- get back to you.
