In a move to cement a location for the company global headquarters, Peoria-based Caterpillar Inc. will place a limited group of senior executives in a leased space in the Chicago area later this year.
The decision means the construction-equipment manufacturer will not build a planned new headquarters complex in Peoria, which had been announced. A news release announcing the decision attributed it to “continuing challenging market conditions and the need to prioritize resources to focus on growth.”
However, that news release also insisted the company also had “reaffirmed the ongoing importance of its presence in Peoria and Central Illinois” but that a Chicago location would mean better access to the company’s global customers, dealers and worldwide operations.
“Caterpillar’s Board of Directors has been discussing the benefits of a more accessible, strategic location for some time,” CEO Jim Umpleby was quoted as saying in the news release. “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.”
Beginning this year, a limited number of senior executives will move into leased office space, according to the company. Eventually, Caterpillar expects about 300 employees to be based at the new global HQ, a number that will include some positions that will be moved from Peoria.
