Caterpillar Will Move Corporate Headquarters to Chicago Area
Caterpillar Inc. announced today (Tuesday, Jan. 31, 2017) it will relocate its global headquarters from Peoria to the Chicago area later this year.
The question for Kane County residents, unanswered in the corporate news release, is where in the Chicago area Caterpillar’s global offices will land and what that news means for its Aurora-area plant, located at 325 S. Route 31, in Montgomery.
Corporate management said the decision to move away from Peoria was difficult, but having access to an international transportation hub was vital to the company’s future.
“Caterpillar’s Board of Directors has been discussing the benefits of a more accessible, strategic location for some time,” said Caterpillar CEO Jim Umpleby. “Since 2012, about two-thirds of Caterpillar’s sales and revenues have come from outside the United States. Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently.
“We value our deep roots in Central Illinois, and Peoria will continue to be our hometown,” Umpleby added. “(But) the new location is an opportunity to add to our talented team while improving the productivity of our senior leaders.”
A limited number of senior executives will move into leased office space beginning in 2017, the Caterpillar release said. Once the new location is fully operational, Caterpillar expects about 300 employees to be based there, which includes some positions relocated from the Peoria area.
A move to Chicago means “a previously announced Peoria headquarters complex will not be built,” according to the Caterpillar news release.
Caterpillar’s fourth-quarter report, released Jan. 26, said full-year sales and revenues in 2016 were $38.5 billion, down about 18 percent from $47 billion in 2015.
Over the last five years, even while facing these challenging conditions, Caterpillar, along with its employees and retirees, has contributed more than $60 million to support thousands of families, organizations and programs across Central Illinois. The company will continue its philanthropic support and deep civic involvement in the Peoria area.
The company announced Wednesday it is considering moving machine production out of its Aurora-area plant, according to The Beacon-News. Caterpillar did not say whether those plans have changed in the wake of Tuesday’s announcement.
SOURCE: Caterpillar Inc. news release
For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2016 sales and revenues of $38.537 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.