Caterpillar to establish global HQ in Chicago area
Company says significant presence will be maintained in Peoria and Central Illinois
CATERPILLAR Inc. have announced today that they are to locate a limited group of senior executives and support functions in the Chicago area later this year, in a move aimed at improving access to global customers, dealers and worldwide operations, while also enhancing executive recruitment.
The company also reaffirmed the ongoing importance of its presence in Peoria and Central Illinois, which will continue to have largest concentration of Cat employees in the world. However, the previously announced Peoria headquarters complex will not be built.
Caterpillar’s chief executive officer, Jim Umpleby, said the board of directors had been discussing the benefits of a more accessible, strategic location for some time.
‘Since 2012, about two-thirds of Caterpillar’s sales and revenues have come from outside the US. 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,' said Mr Umpleby. ‘The new location is also an opportunity to add to our talented team while improving the productivity of our senior leaders.’
He continued: ‘We value our deep roots in Central Illinois, and Peoria will continue to be our hometown. The vast majority of our people will remain in this important region where we have many essential facilities and functions.’
As a result of continuing challenging market conditions and the need to prioritize resources to focus on growth, Caterpillar will not be building the previously announced headquarters complex in Peoria. The current headquarters building will continue to be used for Caterpillar offices.
Commenting on today’s announcement, Peoria’s mayor, Jim Ardis, said: ‘As mayor, I never want jobs moving out of the city. However, the overwhelming majority of Caterpillar employees and their families based in the Peoria area won’t be impacted by this decision, and I’m pleased Caterpillar continues to call Peoria its hometown.’
A limited number of senior executives will move into leased office space in the Chicago area beginning in 2017. Once the new location is fully operational, Caterpillar expect about 300 employees to be based there, including some positions relocated from the Peoria area.
