Construction and mining equipment giant Caterpillar Inc. announced Tuesday it will move its global headquarters from its current location in Deerfield, Illinois, to the company’s existing office in Irving, Texas.
“We believe it’s in the best strategic interest of the company to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” said Chairman and CEO Jim Umpleby in a press release.
The company said it will begin transitioning its headquarters from the Chicago area to the Dallas suburb of Irving in 2022.
“Caterpillar has had a presence in Texas since the 1960s across several areas of the company,” the company’s statement added. “Illinois remains the largest concentration of Caterpillar employees anywhere in the world.”
Reuters reported the company indicated in a statement it had neither sought nor received incentives for the relocation to Texas.
A Caterpillar spokesperson said most of the company’s 230 employees currently based in Deerfield will gradually move to the new location. Caterpillar will still have more than 17,000 employees in Illinois.
The construction giant’s electric power division already operates out of its Irving location office.
Alfredo Ortiz, president and CEO of the Job Creators Network (JCN), reacted to Caterpillar’s announcement with the observation that “the debate over economy policy in Red States versus Blue States is heating up, and Caterpillar is voting with its feet.”
Ortiz added:
Caterpillar’s decision to move to Texas is just the latest evidence that free-market policies in Red States are superior to the Big Government policies in Blue States and this should be reflected in the decision-making coming out of Washington. JCN’s seven-figure ‘Great Opportunity Project’ is promoting the success of free-market policies in Red States through a national TV and radio ad campaign, several mini-documentaries, billboards, and events with elected officials and small business owners.
JCN’s Great Opportunity Project’s aim is to showcase “the underappreciated success of good state-level policies” and “shape the broader national debate about economic policy.”
“Georgia, South Dakota, and Arizona will be featured in the campaign and additional states will be added as the campaign continues through November 2022,” JCN’s announcement said.
In May, aerospace company Boeing announced it would also be moving its headquarters from Chicago to Arlington, Virginia, where it plans to develop a research and technology center close by to the Pentagon, Reuters reported last month.
“The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent,” Boeing President and Chief Executive Officer Dave Calhoun said about the move.
Meanwhile, with no state income tax and fewer regulations, Texas has attracted more companies relocating their headquarters, especially from California.
Electric vehicle manufacturer Tesla moved its headquarters from California to Texas last year, and Elon Musk, the company’s chief executive, also moved his personal residence from California to Texas.
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Susan Berry, PhD, is national education editor at The Star News Network. Email tips to [email protected].
