Caterpillar Inc. said on Tuesday it would move its global headquarters to a Dallas suburb from the construction equipment maker's century-long home in Illinois.
Caterpillar did not say why it was moving the headquarters to Irving, Texas, from Deerfield, Illinois, a Chicago suburb. It said in an emailed statement it did not seek or receive incentives for the relocation. The company is the latest big manufacturer to exit Illinois. Last month, aerospace giant Boeing announced it would move its corporate headquarters from Chicago to Arlington, Virginia.
Texas, meanwhile, has been steadily attracting companies that have decided to relocate their headquarters, particularly from California. The state is known for its lower labor costs and less stringent regulation.
A company spokesperson for Caterpillar said most of its 230 employees based in Deerfield will move to the new headquarters over time. Caterpillar will maintain its presence in Illinois, where it has more than 17,000 employees, the spokesperson said.
CAT hosted its bi-annual Investor's Day in Grapevine, Texas, last month. The machinery maker's electric power division already operates out of its office in Irving, Texas.
Texas Governor Greg Abbott said on Twitter his state is a "perfect fit for this international brand," saying many large companies had headquarters there.
Last year, electric vehicle maker Tesla, which counts California as its biggest U.S. market, moved its headquarters from California to Texas. Tesla Chief Executive Elon Musk also moved his personal residence from California to Texas, which has no state income tax. A wider talent pool and generous tax breaks have been the biggest draw for companies moving to Texas, said Matt Arnold, an equity analyst at Edward Jones.
"Illinois has been losing employers based on taxation and regulations that aren't necessarily the most friendly to businesses," Arnold said.
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