The industrial giant Caterpillar Inc. moves its Chicago suburban headquarters to Irving.
The company now has about 120 employees in an Irving office, and Caterpillar spokeswoman Kate Kenny said the size of her local workforce will depend on future business needs. The international manufacturer of construction and mining equipment, engines, generators and locomotives has been present in Texas since the 1960s.
“We believe it is in the best strategic interest of the company to make this move, which supports Caterpillar’s profitable growth strategy as we help our customers build a better and more sustainable world,” said the president and director. delegate Jim Umpleby in a statement.
Caterpillar, which reported revenue of $ 51 billion last year, will become the fifth largest public company based in North Texas. Only Exxon Mobil, McKesson, AT&T and Energy Transfer will follow. Exxon will move its Dallas-Fort Worth headquarters to the Houston area next year.
The move will turn D-FW into the headquarters of 24 Fortune 500 companies. Ten of them will be in Irving, which self-proclaims the city of the “headquarters.” Builders FirstSource, based in Dallas, recently announced its move to Irving.
Caterpillar did not ask for incentives to relocate headquarters, Kenny said.
Beth Bowman, president and CEO of the Irving-Las Colinas Chamber of Commerce and the Irving Economic Development Association, said companies choose Irving and D-FW in general for their business-friendly environment. ‘favorable tax structure and people.
“Our goal is to make sure that Caterpillar, its entire team at its global headquarters, knows that they are entering a community that wants them and we look forward to integrating them,” Bowman said.
Gov. Greg Abbott said the relocation of the company is a “testament to the unlimited opportunity that Texas has to offer.” He noted that the move means Texas will host 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 country’s lowest business operating costs, a reasonable regulatory environment, and a lower cost of living combined with an exceptional quality of life, “Abbott said in a statement.
Kenny, the company’s global media and public affairs manager, cited the attraction of talent as a key reason for the move.
“We believe that being in the Dallas Fort-Worth marketplace will give us the ability to attract new talent and provide additional career opportunities to our current employees to help with retention,” Kenny said. “Irving’s location provides global access to our employees, customers and resellers near two major airports.”
Jason Kaiser (left), vice president of Caterpillar Inc. responsible for its power division, and Jaime Mineart, general manager of retail power solutions, spoke to the media in May during a visit to Caterpillar’s Williams Square offices in Irving (Ben Torres / Col · Special worker)
Caterpillar’s office in Irving’s iconic Williams Square offers employees a combination of downtown Dallas and suburban residential areas and a range of high-priced home and school district prices, Kenny said.
In 2017, the company moved its global headquarters from Peoria, Ill., To Deerfield, Ill., Taking over the former headquarters of a premium spirits manufacturer. At the time, Caterpillar did not receive any incentives from Deerfield or the state, according to Chicago Tribune. There are 230 employees in the Deerfield office, which Kenny said the company expects to move to Irving in time.
He said the company will maintain the Deerfield office lease to allow for a smoother transition.
Caterpillar employed 107,700 workers worldwide last year, with 63,400 located outside the United States. Its largest business segments are the construction industries, which generated $ 22.1 billion last year, and energy and transportation, which generated $ 20.3 billion. It also has a funding arm.
More than 62% of the company’s sales and revenue come from abroad, and more than 4 million Caterpillar products operate worldwide. There are currently 124 Texas jobs posted on the Caterpillar career site, with positions in Irving, Seguin, Houston and more locations across the state.
Last year, the company consolidated workers in its power division in Las Colinas.
North Texas is gaining the corporate headquarters of a company “positioned to capitalize on an economic recovery, with the stimulus of infrastructure increasing growth in 2023,” according to Bloomberg Intelligence industry analyst Christopher Ciolino. Infrastructure financing could create a $ 27 billion to $ 38 billion revenue opportunity for construction equipment manufacturers over the next five years.
Ciolino expects double-digit profit growth for the company, driven by strong demand, rising commodity prices and a long working portfolio.
Caterpillar’s service unit, which works with customers to extend the life of expensive machinery, represents its greatest growth opportunity over the next four years, Ciolino wrote in May after a day of investing in Grapevine. The company expects to double its revenue from services to $ 26 billion by 2026.
The company will also benefit from increased renewable energy initiatives through extracted commodities and the sale of turbines and generators needed to modernize the power grid, Ciolino wrote. It operates an autonomous mining fleet of 525 machines in 20 locations worldwide.
Caterpillar joins heavy machinery manufacturer Kubota Tractor Corp. North Texas, rich in logistics. The Japan-based company moved its U.S. headquarters from California to Grapevine in 2017 to a more central location to service its U.S. distributors and manufacturing and distribution facilities in Kansas and Georgia.
Caterpillar’s dealer network includes 44 locations in the U.S. and 116 overseas locations.
Caterpillar Inc. offices, left, Williams Square in Irving. (Ben Torres / Special Collaborator) Related: Industrial giant Caterpillar chooses North Texas for relocation, hundreds of jobs