Caterpillar Inc.

Caterpillar Inc. (often shortened to CAT) is an American company that makes big machines for building, mining, and engineering. It is the world's biggest maker of construction equipment.

In 2018, Caterpillar was ranked number 73 on the Fortune 500 list and number 265 on the Global Fortune 500 list. The company's stock is part of the Dow Jones Industrial Average.

Caterpillar started in 1925 when two companies, the Holt Manufacturing Company and the C. L. Best Tractor Company, joined together. This created a new company called California-based Caterpillar Tractor Company. In 1986, the company changed its name to Caterpillar Inc. In 2017, it decided to move its headquarters from Peoria, Illinois, to Deerfield, Illinois. Since 2022, the headquarters have been in Irving, Texas.

Caterpillar also sells clothing and work boots with its famous "Cat" name. From 2012 to 2024, it also worked with a brand that made tough mobile phones and rugged smartphones called the Cat phone. You can easily spot Caterpillar machines and products by their bright "Caterpillar Yellow" color and the "CAT" logo.

History

Main article: Holt Manufacturing Company

Origins

The story of Caterpillar starts with steam tractors made by the Holt Manufacturing Company in 1890. These early tractors were very heavy and often got stuck in the soft ground of the San Joaquin Valley Delta near Stockton, California. To solve this, Benjamin Holt made wheels much larger and wider, but this made the tractors too complex and costly.

Holt then tried a new idea: he put wooden tracks on the wheels of a tractor. On Thanksgiving Day in 1904, this new design worked well in the wet land of Roberts Island. Around the same time, a company in England made a similar tracked vehicle and sold the idea to Holt. Someone noticed that the tracks moving over the wheels looked like a caterpillar, and that's how the name began. Holt sold his first steam-powered tractors with tracks in 1909.

Headquarters locations

In 1910, Holt opened a new factory in East Peoria, Illinois. This location helped the company grow quickly, and soon they were making tractors in both California and Illinois. In 2017, the company moved its headquarters to Deerfield, Illinois, and then in 2022, it moved again to Irving, Texas, looking for the best place to grow.

Use in World War I

During World War I, Holt's tractors were very useful. Before the U.S. joined the war, Holt sent many tractors to countries like England, France, and Russia. These countries used the tractors to move supplies and artillery. The British military loved these tractors and used them to pull big guns. The design of these tractors also helped inspire the first tanks, changing how wars were fought.

Postwar challenges

After World War I ended, Holt faced hard times. The big military tractors were not suited for farming, and many returned artillery tractors lowered the price of new ones. The company struggled to change from wartime work to peacetime farming equipment. Competition also grew from other companies like C.L. Best, which had made smaller farm tractors during the war.

Caterpillar company formed (1925)

In 1925, Holt merged with C.L. Best to form the Caterpillar Tractor Company. This new company focused on making smaller tractors and equipment for building roads. They introduced diesel engines, which were better than gasoline engines. During World War II, Caterpillar helped build airfields and other facilities for the U.S. Navy. After the war, the company grew quickly and began making products in other countries.

Expansion in developing markets

Caterpillar built factories in many parts of the world, including Russia, China, Brazil, and India. In Russia, they built a factory near St. Petersburg, but stopped production there in 2022. In China, they have a factory that makes wheel loaders and motor graders. Caterpillar has also been making machines in Brazil since 1960 and has several factories in India.

Acquisitions

Caterpillar has grown not just by selling more of its own products, but also by buying other companies.

Divestitures

Sometimes, Caterpillar sells parts of the business that do not fit with what they do best.

Business lines

Caterpillar Inc. makes many kinds of heavy machines and services for different industries. As of 2022, it has four main areas: construction, resource industries, energy and transportation, and financial products.

Caterpillar sells about 400 different machines through its dealers. These include tracked tractors, hydraulic excavators, backhoe loaders, motor graders, off-highway trucks, wheel loaders, agricultural tractors, and locomotives. These machines are used in construction, road-building, mining, forestry, energy, transportation, and moving materials. Caterpillar is the world’s largest maker of wheel loaders, which are built in places like Clayton, North Carolina, and Aurora, Illinois.

The company also makes engines and gas turbines used in locomotives, semi trucks, ships, and power plants. Caterpillar also offers financial services and lets other companies use its CAT brand on products like footwear and consumer goods.

Operations

Caterpillar makes its products in 110 factories around the world. Most of these factories are in the United States, with others in countries like Australia, Belgium, Brazil, China, and many more.

The main place where Caterpillar started making things is Peoria, Illinois. This is also where the company's headquarters and important research are located. Caterpillar still runs four big factories in the Peoria area.

Caterpillar sells its products in almost 200 countries. These products are sold through 220 dealers who own their own businesses. These dealers help customers buy, fix, and rent Caterpillar machines. Some big dealers include Finning in Vancouver, Canada and Gmmco Ltd in India.

Caterpillar’s leaders follow strict rules for honest and ethical behavior. The company’s board of directors helps make important decisions.

Workforce and labor relations

As of December 31, 2009, Caterpillar employed 93,813 people, with many working outside the United States. This was fewer workers than in 2008.

In the early 1980s, Caterpillar had financial problems because demand for their products dropped sharply. The U.S. also stopped selling some Caterpillar machines to the Soviet Union after it invaded Afghanistan. To save money, Caterpillar reduced its workforce, which led to strikes by workers in Illinois and Pennsylvania. In 1992 and again in 1994–1995, large groups of workers went on strike for many months.

To avoid future strikes, Caterpillar made changes such as moving some work to smaller factories in different U.S. states and using outside companies for some jobs. In 2012, workers in Canada were locked out of a factory and asked to accept big pay cuts, which caused anger there. Later that year, workers went on strike over pay issues.

Environmental record

Environmental stewardship

Caterpillar has been praised for trying to help the environment. Since 1997, its teams in Illinois have won awards for stopping pollution. For example, in 2007, one team in Joliet changed a process to use less waste and water. Another team found better ways to recycle scrap metal, and a third team improved how it reuses used oil. In 2004, Caterpillar joined a program to help make older buses and trucks cleaner.

In 2005, Caterpillar gave $12 million to help protect rivers in Brazil, the U.S., and China. The company works with an international group on sustainable development and has been on a global sustainability index since 2001.

Clean Air Act violation

In 1999, Caterpillar and other diesel engine makers agreed to follow new rules after some engines were found to change emissions during tests. This caused more pollution than allowed. Caterpillar paid fines and had to meet deadlines to improve emissions.

Carbon footprint

Caterpillar checks how much it adds to climate change and wants to cut these emissions by 30% by 2030 compared to 2018 levels.

Controversies

Caterpillar Inc. has faced several controversies over the years. In 2017, US federal agents searched Caterpillar's headquarters because the company was accused of using tricky methods to lower its taxes. Investigations showed that Caterpillar moved profits to a new Swiss subsidiary.

The company has also been criticized for selling bulldozers to the Israeli military. These bulldozers were used in areas disputed between Israel and Palestine. Human rights groups asked Caterpillar to stop selling these machines. Some investors and groups have taken steps to distance themselves from Caterpillar because of these concerns.

Caterpillar has also been involved in trademark disputes. Additionally, the company paid settlements for claims that some of its engines were faulty.

Advocacy, philanthropy, awards, and lobbying efforts

Caterpillar works with big companies and groups in Washington D.C. called the U.S. Global Leadership Coalition. This group helps get money for American projects around the world. These projects make places safer and help people earn more money, which can create new markets for Caterpillar’s products.

In 2011, Caterpillar won an award called the Henry C. Turner Prize for Innovation in Construction Technology from the National Building Museum. In 2025, the company helped pay for a project to update part of the White House.

Leadership

Caterpillar Inc. has had many leaders over the years. Important presidents include Raymond C. Force from 1925 to 1930, and Donald Vester Fites from 1989 to 1990. The position of president was removed after July 1, 1990.

Important chairs of the board include Louis B. Neumiller from 1954 to 1962, and Donald James Umpleby III from 2018 to today.