Caterpillar to relocate headquarters to Texas

Construction machine company follows Tesla, SpaceX Starbase and Oracle in move to southwest US state

The Caterpillar logo at the Bauma Trade Fair in Munich, Germany, in 2019. Reuters

Caterpillar, the producer of the ubiquitous yellow building and mining equipment, is moving its headquarters to the Dallas-Fort Worth area in Texas, effectively ending its century-long history in Illinois.

The machinery maker believes the move will help it to attract new talent and improve global access to its employees, customers and dealer network, because of the two major airports in the region, Bloomberg News reported.

The company said it would begin shifting its Deerfield headquarters to Irving, Texas, this year, affecting 230 jobs.

Caterpillar, with more than 107,000 employees globally, is the latest major company to relocate to Texas, following Tesla and Oracle, which moved to Austin from California.

A Tesla Road exit sign on the Toll 130 motorway points to the new Gigafactory in Austin, Texas. AFP

Workers set up for the grand opening party at the new Tesla Giga Texas plant in Austin, Texas. AFP

Tesla's unveiling of the new factory in Austin has highlighted corporate America's growing affinity for Texas, compared with California and other states that are considered to be less tax-friendly. AFP

The parking lot at Tesla's Austin factory is packed with employees' cars. Bloomberg

The construction site of the Tesla Gigafactory in Austin, Texas, in October 2021. Reuters

A closer look at the construction site of the Tesla Gigafactory in Austin, Texas. Reuters

Elon Musk speaks at the South by Southwest Interactive festival in Austin, Texas. Reuters

The announcement is a blow to Illinois Governor JB Pritzker, who is seeking a second term in November’s election, and a boost to Republican Texas Governor Greg Abbott.

The company is following Boeing in moving its headquarters out of the Chicago area after the airplane maker this year said it would be relocating to Arlington, Virginia.

“It’s disappointing to see Caterpillar move their 240 headquarters employees out of Deerfield over the next several years when so many companies are coming in,” Mr Pritzker said.

“We will continue to support the 17,400 Illinoisans who work for the company.”

The move puts the company’s headquarters staff in an area with lower cost of living than Illinois.

Caterpillar said it has had a presence in Texas since the 1960s, but Illinois remains its largest centre of employees.

“We believe being in the Dallas Fort-Worth market will give us the ability to attract new talent and provide additional career opportunities for our current employees to aid in retention,” spokeswoman Kate Kenny said.

“We have more than 17,000 employees in Illinois", including about 12,000 in the Peoria area, Ms Kenny said.

Five years ago, Caterpillar shifted its headquarters within Illinois from its long-time foothold in Peoria to Deerfield outside of Chicago, a move that at the time upset citizens of the town in which it had built a global empire for more than 100 years.

The 2017 move came as part of the company's attempts to strengthen its push in foreign markets.

Mural displaying Jeff Bezos and his brother Mark Bezos, in Van Horn, Texas, where Blue Origin rocket launches take place. Reuters

Though Texas has mountain ranges throughout the state, the 10 freeway and roads in and out of Van Horn are known for its wide expanses, perfect for launching rockets. Holly Aguirre / The National

Blue Origin's founder Jeff Bezos visited Van Horn, Texas many times before deciding it was the perfect place to launch his rockets. Photo: Blue Origin

Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin

Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin

Blue Origin's founder Jeff Bezos celebrates his first successful landing in the desert outside of Van Horn, Texas. Photo: Blue Origin

Blue Origin's New Shepard rocket landing on the desert terrain outside of Van Horn, Texas. Photo: Blue Origin

Members on Blue Origin's New Shepard rocket experience the true effects of weightlessness before landing outside Van Horn, Texas. Photo: Blue Origin

Blue Origin's New Shepard team members pose after touching down in the desert outside of Van Horn, Texas. Photo: Blue Origin

Blue Origin's New Shepard rocket launches carrying passengers Jeff Bezos, founder of Amazon and space tourism company Blue Origin, brother Mark Bezos, Oliver Daemen and Wally Funk, from its spaceport near Van Horn, Texas on July 20, 2021. AP

William Shatner, center, speaks as Audrey Powers, left, and Chris Boshuizen appear during a press opportunity at the Blue Origin spaceport near Van Horn, Texas, on October 13, 2021. The "Star Trek" actor and the three fellow passengers soared to an altitude of 107 kilometres over the West Texas desert near Van Horn in a fully automated capsule, in a flight that lasted just over 10 minutes. AP

Parachutes carrying Blue Origin's capsule with passengers William Shatner, Chris Boshuizen, Audrey Powers and Glen de Vries going down to the spaceport near Van Horn, Texas, last October. AP

"Good Morning America" host and former NFL star Michael Strahan laughs with Laura Shepard Churchley, daughter of astronaut Alan Shepard, during a media availability on the landing pad after they flew into space aboard Blue Origin’s New Shepard on December 11, 2021 near Van Horn, Texas. Getty Images / AFP

Onlookers watch as Blue Origin’s New Shepard flies toward space carrying "Good Morning America" host Michael Strahan, Laura Shepard Churchley, daughter of astronaut Alan Shepard, and four other civilians on December 11, 2021 near Van Horn, Texas. Getty Images / AFP

This framegrab obtained from Blue Origin, shows the December team landing in West Texas near Van Horn. AFP PHOTO / Blue Origin

A Blue Origin New Shepard rocket returns to Earth at the company's West Texas headquarters near Van Horn. The Guadalupe Mountain Range can be seen in the foreground. AFP

Spectators are now flocking to Van Horn, Texas to watch Blue Origin's rocket launches. Reuters

A sign at the entrance to space company Blue Origin. Reuters

El Capitan is the southern-most point of the Guadalupe Mountains. At 2,464 metres above sea level, El Capitan is the eighth highest peak in Texas and about an hour north from Van Horn, Texas. Photo by Laurence Parent

The Hotel El Capitan is a historic hotel located in the center of downtown Van Horn, Texas and the jewel of the small town. Photo: Texas Historical Commission

Located at the crossroads of the Carlsbad Caverns, Guadalupe and Big Bend National Parks, Hotel El Capitan was built in 1930. Holly Aguirre / The National

Travellers visiting the Guadalupe Mountain National Park often stop in Van Horn, Texas for a respite at the historic El Capitan Hotel. Holly Aguirre / The National

Architect Henry Charles Trost designed buildings all across Texas, Arizona and New Mexico. This is the Hotel El Capitan interior garden. Holly Aguirre / The National

Hotel El Capitan lobby. Holly Aguirre / The National

Hotel El Capitan hallway. Holly Aguirre / The National

Some of the rooms at the Hotel El Capitan overlook the courtyard. Hotel El Capitan

Your four-legged friends are welcome at the Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National

The entrance to the historic Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National

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An aerial view shows the logo of the Van Horn Eagles football team on a water tower in Van Horn, Texas where- Blue Origin held several rocket launches last year. AFP

Cody Colchado and Lupe Colchado eat lunch at the Chuy's Mexican restaurant before Jeff Bezos’ scheduled launch in his Blue Origin rocket from a launchpad in West Texas on July 19, 2021 in Van Horn, Texas. Getty Images / AFP

Hikers visiting the Guadalupe Mountains National Park often take a rest in the shady Grotto, which provides a picturesque setting for a picnic and a rest while hiking in McKittrick Canyon. Photo by National Parks Service

The Ship on the Desert is an early example of 20th-century modernism, distinct for West Texas and sits at the base of the Guadalupe Mountains National Park, an hour north of Van Horn, Texas. Photo by National Parks Service

Van Horn, Texas is the last stop before the turnoff to Marfa, a tiny artist town put on the map after James Dean starred in "Giant", which was filmed there in 1956. Holly Aguirre / The National

Longfellow Ranch is a working cattle ranch and includes the Pinon gas field which offers five-star room and dining facilities for corporate events and guests. Photo: RanchWork

Jeff Bezos bought Longfellow Ranch in 2005, according to NBC News, which is the same time the billionaire bought 66.773 hectares in West Texas. Photo: RanchWork

NBC News reported that Jeff Bezos bought the Longfellow Ranch in 2005, which was the same year he bought 66,773 hectares in same area. Photo: RanchWork

The Blue Origin launch site and facility are located near Van Horn in West Texas. Photo: Blue Origin

Bloomberg News contributed reporting