Caterpillar HQ moves IL to Texas

https://www.reuters.com/business/caterpillar-move-global-hea…

Caterpillar joins the exodus from Blue States to Red States. Also with Tesla (California to Texas) and Boeing (Illinois to Arlington, VA).

What is it about Blue States? Taxes? Executives pay less state income tax. Lower operating costs?

Illinois still has massive debt obligations coming due that one day residents will have to pay.

Or is it red state/blue state issues: abortion, gun rights?

I’m reminded of the billboard they had in Seattle back in the '70s while Boeing was in the do or die with the Boeing 747–a high wire, risk the company venture.

“Will the last one to leave please put out the lights?”

3 Likes

Peoria will NEVER be the same!

sunray
a man who has visited

1 Like

What is it about Blue States? Taxes? Executives pay less state income tax. Lower operating costs?

Ayup!

You’ll pay NO state income tax in Texas.

That goes for you and your employees so lower operating costs too.

Peoria. Caterpillar is probably their largest employer. Skilled work force. Great place to work. Its doubtful they will move manufacturing.

Caterpillar moved HQ to Chicago not long ago. ADM in Decatur did likewise.

Hiring college graduates in midsized communities can be a challenge. Often candidate is married to a college graduate with a career. Finding jobs for both is easier in a big city. HQ can be almost anywhere but big city with major airport and hub is a plus. But costs are higher. Commutes are longer. Crime can be more of a concern.

What is it about Blue States? Taxes? Executives pay less state income tax. Lower operating costs?

Texas is the land of non-income taxes.

Sales taxes–#1 revenue source for the state.

Real estate taxes.

Inventory taxes.

And so on.

All paid by consumers (who else?), of course.

When they fly down to Texas they will also change their name to Butterfly.

Mike

4 Likes

Any opinions on CAT shares?

All paid by consumers (who else?), of course.


Kinda like people who will one day support a Value Added Tax want.

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.

=====================================

Big deal. Headquarters in Texas while the workers stay in Illinois. Probably only a tax break for the company.

Arlington and VA are not a Red city or state. Boeing just wants to be closer to Washington D.C. because of all the government contracts.

Jaak

CAT is an industry leader and a global player. They do have competitors.

They are likely to benefit from infrastructure, water, and mining projects.

They are not immune to recession but will recover and prosper.

1 Like