As per the recent announcement by Caterpillar Inc., it has been confirmed that the news about them moving their global headquarters from Illinois to Irving, Texas is accurate, and the process is underway.
The tractor manufacturing company had previously declared that it would be moving out from its hometown of Deerfield, Illinois, which is also part of the Chicago suburbs and in the state of Texas.
Many reports suggest that this move is quite fatal for the state of Illinois. Caterpillar Inc. It follows the trend of many other major global businesses that moved out of Illinois.
The company has not given any official statements regarding the sudden relocation effort. They also emailed a statement stating that they did not seek or had received any relocation initiatives.
In May this year, Boing, one of the world’s major aerospace companies, moved its global headquarters from Illinois to Texas. It currently has many offices set up for international operation.
What Is The News About Caterpillar Inc.’s Relocation?
The news came out on the last day that one of the significant tractor-manufacturing American companies, Caterpillar Inc., will move its global headquarters from Deerfield, Illinois to Irving, Texas.
The century-old tractor manufacturing company has not given any official statement stating the primary reason for the sudden relocation. Still, there are many speculations about the news.
The spokesperson from Caterpillar had said in an interview that they are planning to move most of their two hundred and thirty employees currently working in the Deerfield-based global office to their new office in Irving, Texas, over the upcoming months. She later assured the public that the company would still be maintaining its more than seventeen thousand employees working in Illinois offices.
Caterpillar Inc. Had also hosted its bi-annual Investor’s Day during May this year in the state of Texas, specifically in Grapevine, where it was found that the Caterpillar’s power division has been working outside the office in Texas.
Overall, the company is fully committed to moving its global headquarters to its new location in Irving, Texas.
Why Is There A Current Trend Of Businesses Moving To Texas?
As the reports suggest, there have been countless speculations regarding the surge in the total number of businesses planning to move into Texas from other states. Some of it is directly linked to the business’s economics, while others are merely political moves.
Currently, one of the most plausible explanations behind the majority of the business moving into the state is the comparatively low labor cost.
Texas has the lowest labor cost with adequate experience in every field, as per many economists. As a result, many businesses, especially those mainly dependent on cheap labor availability, are moving into Texas.
The state is also said to have business-friendly rules and regulations, allowing many popular businesses to quickly shift their offices to Texas and start their operations there.
Texas also has a very low to nil income tax. As a result, it has been a prime source of attraction from businesses across the country.
Last year in 2021, the famous automobile company Tesla had also declared that its chief executive Elon Musk would be moving his residence to the state of Texas. The prime reason behind the relocation was the absence of any tax on income in Texas.
As a result of this new trend, it is evident that Texas will be the next central industrial hub in the USA.