Caterpillar, the world’s largest maker of construction, mining and industrial equipment, is relocating its headquarters to Texas, the latest Fortune 500 company to head to the state in a move that deals a blow to Illinois after it just lost the home office of aerospace company Boeing.
The move announced Tuesday to relocate Caterpillar’s Deerfield, Illinois, headquarters to its divisional office in Irving, outside Dallas, comes just one year after the company consolidated hundreds of U.S. employees from multiple states into that site. And it comes less than five years after relocating its headquarters within Illinois, where it has been based for nearly a century.
Chairman and CEO Jim Umpleby said in a statement the move is “in the best strategic interest of the company” to achieve “profitable growth,” but further details weren’t provided.
Caterpillar, which is ranked No. 73 on the Fortune 500 list of the largest publicly traded U.S. companies by revenue, plans to start transitioning its headquarters this year to Irving at Williams Square’s West Tower at 5205 O’Connor Blvd., which already houses an office for Caterpillar’s electric power division leadership and support teams.
Most of Caterpillar’s 230 employees based at the Deerfield headquarters are expected to transition to the Irving office over time, a spokeswoman said in an email to CoStar News.
The office in Irving is close to Dallas-Fort Worth International Airport, giving Caterpillar global access to its 160 dealers in 193 countries. Irving is known for being home to the headquarters of more Fortune 500 companies per capita than any other place in the country. And Texas, a state known for its lower taxes and business-related costs, topped Fortune magazine’s list this year for having the most headquarters than any other state for the first time in a decade.
Other Fortune 500 companies that have relocated to Dallas-Fort Worth recently include consultancy giant AECOM and real estate brokerage CBRE Group.
In January 2017, less than a month after taking over as CEO, Umpleby announced the company would move its global headquarters from its longtime home in Peoria, which is about halfway between Chicago and St. Louis in central Illinois. In April 2017, Caterpillar said it would move to Deerfield in Chicago’s northern suburbs, and executives began moving in later that year.
Caterpillar’s relocation decision came less than two years after then-CEO Doug Oberhelman’s 2015 announcement that the company planned to build a new three-tower headquarters complex in downtown Peoria near the Illinois River. That momentarily eased fears locally that Caterpillar would follow another central Illinois corporate behemoth, Archer Daniels Midland, which moved its headquarters from Decatur to Chicago’s Loop business district in 2014.
Caterpillar Electric Power Division Vice President Jason Kaiser gives an overview of the company’s existing presence in Texas prior to the company’s announcement it would move its global headquarters to Irving, Texas. (Candace Carlisle/CoStar News)
But Oberhelman retired and was replaced by Umpleby on the first day of 2017, and under the new CEO, the company scrapped plans to build the new Peoria headquarters.
Instead, Caterpillar moved to the Corporate 500 office campus in Deerfield where it leases 119,846 square feet in the four-story building at 510 Lake Cook Road, according to CoStar data.
Caterpillar’s announcement follows <span …….