Caterpillar Inc., its name synonymous with construction equipment across the globe, is moving its corporate headquarters to Irving, Texas after nearly a century of calling Illinois its home. With 2021 sales and revenues of $51B, the manufacturing giant is just the latest company announcing its move into Texas for its favorable business environment.
“We believe it’s in the best strategic interest of the company to make this move, which supports Caterpillar’s strategy for profitable growth,” Caterpillar Chairman and CEO Jim Umpleby said in a statement.
Companies like Oracle, Tesla, Hewlett Packard and REE Automotive have moved their headquarters to Texas within the past year, and many companies like Google, Raytheon, Meta and QTS are planning large operations in the state, according to Texas Economic Development. Austin in particular is cultivating a booming cluster of tech companies, capitalizing on its abundance of young and educated talent, and Texas’ other large metros of San Antonio, Houston and Dallas-Fort Worth have drawn heavy-hitters of their own.
These companies leave California, Illinois and other states in search of greater business incentives and more business-friendly tax policies. In Texas, there’s no personal or corporate income tax. The state boasts the Texas Enterprise Fund, a deal-closing fund which provides capital to companies that bring their big projects to the Lone Star State. It’s the largest fund of its kind in the country, according to the Texas Economic Development Corporation, and it’s just one of the hefty monetary incentives the state gives to companies weighing where to put down roots or expand.
Texas also touts the 9th largest economy in the world, according to Texas Economic Development & Tourism, as well as a massive civilian labor force of 14 million people. For this and other reasons, Texas is the top destination for companies relocating from other states, and the home to 53 Fortune 500 companies.
CONTI Capital closely monitors employment and economic health in markets across the U.S., including the Texas metros of Dallas-Fort Worth, Austin and San Antonio. We believe Texas’ ability to attract company relocations, create jobs and attract workers is one of many leading indicators driving strong demand for multifamily housing.