Industrial giant Caterpillar is moving its headquarters from suburban Chicago to Irving.
The company now has about 120 workers in Irving’s office, and Caterpillar spokeswoman Kate Kenny said the size of the local workforce will depend on future business needs. The international manufacturer of construction and mining equipment, engines, generators and locomotives has been in Texas since the 1960s.
“We believe it is in the company’s best strategic interest to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” Chairman and CEO Jim Umpelby said in a statement.
Caterpillar, which posted revenue of $51 billion last year, will become the fifth largest public company headquartered in North Texas. It will only follow Exxon Mobil, McKesson, AT&T, and Energy Transfer. Exxon is moving its headquarters to Dallas-Fort Worth to the Houston area next year.
This step will make D-FW Home to 24 Fortune 500 companies. Ten of those will be in Irving, who calls herself “Headquarters” city. FirstSource Dallas-based builders Recently announced its transfer to Irving.
Kenny said Caterpillar did not ask for incentives to move the headquarters.
Companies choose Irving and D-FW in general because of their business-friendly environment, favorable tax structure and people, said Beth Bowman, president and CEO of the Irving Chamber of Commerce-Las Colinas and the Irving Economic Development Partnership.
“Our focus is on making sure Caterpillar, its entire team within its global headquarters, know they are coming to a community that wants them and we look forward to integrating them,” Bowman said.
Governor Greg Abbott said the company’s relocation is “a testament to the limitless opportunity that Texas offers.” He noted that the move means Texas will be home to 54 Fortune 500 companies.
“Companies of all sizes and people of all backgrounds can grow and succeed in the Lone Star State because we advocate a world-class economic environment fueled by the lowest business operating costs in the state, an affordable regulatory environment and a lower cost of living along with an exceptional quality of life,” Abbott said in a statement.
Kenny, the company’s director of global media and public affairs, cited talent attraction as a key reason for the move.
“We believe that being in the Dallas-Fort Worth market will give us the ability to attract new talent and provide additional employment opportunities to our existing employees to help retain them,” Kenny said. “The Irving site provides global access to our employees, customers and agents within close proximity to two major airports.”
Kenny said the Caterpillar office in Williams Square, an Irving landmark, gives employees a mix of downtown Dallas and suburban housing and an array of high-quality housing price points and school districts.
In 2017, the company moved its global headquarters from Peoria, Illinois, to Deerfield, Illinois, taking over the former headquarters of the premium spirits maker. At the time, Caterpillar did not receive any incentives from Deerfield or from the state. according to Chicago Tribune. There are 230 employees in the Deerfield office, which Kenny said the company expects to transfer to Irving over time.
She said the company would retain the Deerfield office lease to allow for a smoother transition.
Caterpillar employed 107,700 workers globally last year, including 63,400 workers outside the United States. Its largest business sectors are construction industries, which generated $22.1 billion last year, and energy and transportation, which brought in $20.3 billion. It also has a financing arm.
More than 62% of the company’s sales and revenue come from outside the country, and more than 4 million Caterpillar products operate worldwide. There are 124 Texas jobs currently offered on the Caterpillar jobs site, with roles in Irving, Seguin, Houston and more locations across the state.
Last year, the company Consolidated workers of electric power department in Las Colinas.
North Texas acquiring corporate headquarters is “in a position to benefit from an economic recovery, with an infrastructure stimulus that drives growth in 2023,” according to Bloomberg Intelligence industrial analyst Christopher Ciolino. Infrastructure financing could provide a revenue opportunity between $27 billion and $38 billion for construction equipment manufacturers over the next five years.
Ciolino expects double-digit earnings growth for the company, supported by strong demand, higher commodity prices and an extended backlog.
Ciolino wrote in May a day later to an investor in Grapevine, that the Caterpillar service unit, which works with customers to extend the life of expensive machinery, represents its biggest growth opportunity over the next four years. The company expects to double its service revenue to $26 billion by 2026.
Ciolino wrote that the company will also benefit from increased renewable energy initiatives through commodity mined and sales of turbines and generators needed to modernize the electrical grid. It operates an independent mining fleet of 525 machines at 20 locations globally.
Caterpillar joins Kubota Tractor Corp. to manufacture heavy machinery in logistics-rich North Texas. Japan based company Relocation based in the United States from California to Grapevine in 2017 for a more central location to serve its US dealers and manufacturing and distribution facilities in Kansas and Georgia.
Caterpillar’s dealer network includes 44 locations in the United States and 116 overseas.
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