The Caterpillar logo at the Bauma Trade Fair in Munich, Germany, in 2019. Reuters
The Caterpillar logo at the Bauma Trade Fair in Munich, Germany, in 2019. Reuters
The Caterpillar logo at the Bauma Trade Fair in Munich, Germany, in 2019. Reuters
The Caterpillar logo at the Bauma Trade Fair in Munich, Germany, in 2019. Reuters

World

US

Caterpillar to relocate headquarters to Texas

Construction machine company follows Tesla, SpaceX Starbase and Oracle in move to southwest US state

The National

June 14, 2022

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Caterpillar, the producer of the ubiquitous yellow building and mining equipment, is moving its headquarters to the Dallas-Fort Worth area in Texas, effectively ending its century-long history in Illinois.

The machinery maker believes the move will help it to attract new talent and improve global access to its employees, customers and dealer network, because of the two major airports in the region, Bloomberg News reported.

The company said it would begin shifting its Deerfield headquarters to Irving, Texas, this year, affecting 230 jobs.

Caterpillar, with more than 107,000 employees globally, is the latest major company to relocate to Texas, following Tesla and Oracle, which moved to Austin from California.

A Tesla Road exit sign on the Toll 130 motorway points to the new Gigafactory in Austin, Texas. AFP
A Tesla Road exit sign on the Toll 130 motorway points to the new Gigafactory in Austin, Texas. AFP
Workers set up for the grand opening party at the new Tesla Giga Texas plant in Austin, Texas. AFP
Workers set up for the grand opening party at the new Tesla Giga Texas plant in Austin, Texas. AFP
Tesla's unveiling of the new factory in Austin has highlighted corporate America's growing affinity for Texas, compared with California and other states that are considered to be less tax-friendly. AFP
Tesla's unveiling of the new factory in Austin has highlighted corporate America's growing affinity for Texas, compared with California and other states that are considered to be less tax-friendly. AFP
The parking lot at Tesla's Austin factory is packed with employees' cars. Bloomberg
The parking lot at Tesla's Austin factory is packed with employees' cars. Bloomberg
The construction site of the Tesla Gigafactory in Austin, Texas, in October 2021. Reuters
The construction site of the Tesla Gigafactory in Austin, Texas, in October 2021. Reuters
A closer look at the construction site of the Tesla Gigafactory in Austin, Texas. Reuters
A closer look at the construction site of the Tesla Gigafactory in Austin, Texas. Reuters
Elon Musk speaks at the South by Southwest Interactive festival in Austin, Texas. Reuters
Elon Musk speaks at the South by Southwest Interactive festival in Austin, Texas. Reuters

The announcement is a blow to Illinois Governor JB Pritzker, who is seeking a second term in November’s election, and a boost to Republican Texas Governor Greg Abbott.

The company is following Boeing in moving its headquarters out of the Chicago area after the airplane maker this year said it would be relocating to Arlington, Virginia.

“It’s disappointing to see Caterpillar move their 240 headquarters employees out of Deerfield over the next several years when so many companies are coming in,” Mr Pritzker said.

“We will continue to support the 17,400 Illinoisans who work for the company.”

The move puts the company’s headquarters staff in an area with lower cost of living than Illinois.

Caterpillar said it has had a presence in Texas since the 1960s, but Illinois remains its largest centre of employees.

“We believe being in the Dallas Fort-Worth market will give us the ability to attract new talent and provide additional career opportunities for our current employees to aid in retention,” spokeswoman Kate Kenny said.

“We have more than 17,000 employees in Illinois", including about 12,000 in the Peoria area, Ms Kenny said.

Five years ago, Caterpillar shifted its headquarters within Illinois from its long-time foothold in Peoria to Deerfield outside of Chicago, a move that at the time upset citizens of the town in which it had built a global empire for more than 100 years.

The 2017 move came as part of the company's attempts to strengthen its push in foreign markets.

Mural displaying Jeff Bezos and his brother Mark Bezos, in Van Horn, Texas, where Blue Origin rocket launches take place. Reuters
Mural displaying Jeff Bezos and his brother Mark Bezos, in Van Horn, Texas, where Blue Origin rocket launches take place. Reuters
Though Texas has mountain ranges throughout the state, the 10 freeway and roads in and out of Van Horn are known for its wide expanses, perfect for launching rockets. Holly Aguirre / The National
Though Texas has mountain ranges throughout the state, the 10 freeway and roads in and out of Van Horn are known for its wide expanses, perfect for launching rockets. Holly Aguirre / The National
Blue Origin's founder Jeff Bezos visited Van Horn, Texas many times before deciding it was the perfect place to launch his rockets. Photo: Blue Origin
Blue Origin's founder Jeff Bezos visited Van Horn, Texas many times before deciding it was the perfect place to launch his rockets. Photo: Blue Origin
Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket launch outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's founder Jeff Bezos celebrates his first successful landing in the desert outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's founder Jeff Bezos celebrates his first successful landing in the desert outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket landing on the desert terrain outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket landing on the desert terrain outside of Van Horn, Texas. Photo: Blue Origin
Members on Blue Origin's New Shepard rocket experience the true effects of weightlessness before landing outside Van Horn, Texas. Photo: Blue Origin
Members on Blue Origin's New Shepard rocket experience the true effects of weightlessness before landing outside Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard team members pose after touching down in the desert outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard team members pose after touching down in the desert outside of Van Horn, Texas. Photo: Blue Origin
Blue Origin's New Shepard rocket launches carrying passengers Jeff Bezos, founder of Amazon and space tourism company Blue Origin, brother Mark Bezos, Oliver Daemen and Wally Funk, from its spaceport near Van Horn, Texas on July 20, 2021. AP
Blue Origin's New Shepard rocket launches carrying passengers Jeff Bezos, founder of Amazon and space tourism company Blue Origin, brother Mark Bezos, Oliver Daemen and Wally Funk, from its spaceport near Van Horn, Texas on July 20, 2021. AP
William Shatner, center, speaks as Audrey Powers, left, and Chris Boshuizen appear during a press opportunity at the Blue Origin spaceport near Van Horn, Texas, on October 13, 2021. The "Star Trek" actor and the three fellow passengers soared to an altitude of 107 kilometres over the West Texas desert near Van Horn in a fully automated capsule, in a flight that lasted just over 10 minutes. AP
William Shatner, center, speaks as Audrey Powers, left, and Chris Boshuizen appear during a press opportunity at the Blue Origin spaceport near Van Horn, Texas, on October 13, 2021. The "Star Trek" actor and the three fellow passengers soared to an altitude of 107 kilometres over the West Texas desert near Van Horn in a fully automated capsule, in a flight that lasted just over 10 minutes. AP
Parachutes carrying Blue Origin's capsule with passengers William Shatner, Chris Boshuizen, Audrey Powers and Glen de Vries going down to the spaceport near Van Horn, Texas, last October. AP
Parachutes carrying Blue Origin's capsule with passengers William Shatner, Chris Boshuizen, Audrey Powers and Glen de Vries going down to the spaceport near Van Horn, Texas, last October. AP
"Good Morning America" host and former NFL star Michael Strahan laughs with Laura Shepard Churchley, daughter of astronaut Alan Shepard, during a media availability on the landing pad after they flew into space aboard Blue Origin’s New Shepard on December 11, 2021 near Van Horn, Texas. Getty Images / AFP
"Good Morning America" host and former NFL star Michael Strahan laughs with Laura Shepard Churchley, daughter of astronaut Alan Shepard, during a media availability on the landing pad after they flew into space aboard Blue Origin’s New Shepard on December 11, 2021 near Van Horn, Texas. Getty Images / AFP
Onlookers watch as Blue Origin’s New Shepard flies toward space carrying "Good Morning America" host Michael Strahan, Laura Shepard Churchley, daughter of astronaut Alan Shepard, and four other civilians on December 11, 2021 near Van Horn, Texas. Getty Images / AFP
Onlookers watch as Blue Origin’s New Shepard flies toward space carrying "Good Morning America" host Michael Strahan, Laura Shepard Churchley, daughter of astronaut Alan Shepard, and four other civilians on December 11, 2021 near Van Horn, Texas. Getty Images / AFP
This framegrab obtained from Blue Origin, shows the December team landing in West Texas near Van Horn. AFP PHOTO / Blue Origin
This framegrab obtained from Blue Origin, shows the December team landing in West Texas near Van Horn. AFP PHOTO / Blue Origin
A Blue Origin New Shepard rocket returns to Earth at the company's West Texas headquarters near Van Horn. The Guadalupe Mountain Range can be seen in the foreground. AFP
A Blue Origin New Shepard rocket returns to Earth at the company's West Texas headquarters near Van Horn. The Guadalupe Mountain Range can be seen in the foreground. AFP
Spectators are now flocking to Van Horn, Texas to watch Blue Origin's rocket launches. Reuters
Spectators are now flocking to Van Horn, Texas to watch Blue Origin's rocket launches. Reuters
A sign at the entrance to space company Blue Origin. Reuters
A sign at the entrance to space company Blue Origin. Reuters
El Capitan is the southern-most point of the Guadalupe Mountains. At 2,464 metres above sea level, El Capitan is the eighth highest peak in Texas and about an hour north from Van Horn, Texas. Photo by Laurence Parent
El Capitan is the southern-most point of the Guadalupe Mountains. At 2,464 metres above sea level, El Capitan is the eighth highest peak in Texas and about an hour north from Van Horn, Texas. Photo by Laurence Parent
The Hotel El Capitan is a historic hotel located in the center of downtown Van Horn, Texas and the jewel of the small town. Photo: Texas Historical Commission
The Hotel El Capitan is a historic hotel located in the center of downtown Van Horn, Texas and the jewel of the small town. Photo: Texas Historical Commission
Located at the crossroads of the Carlsbad Caverns, Guadalupe and Big Bend National Parks, Hotel El Capitan was built in 1930. Holly Aguirre / The National
Located at the crossroads of the Carlsbad Caverns, Guadalupe and Big Bend National Parks, Hotel El Capitan was built in 1930. Holly Aguirre / The National
Travellers visiting the Guadalupe Mountain National Park often stop in Van Horn, Texas for a respite at the historic El Capitan Hotel. Holly Aguirre / The National
Travellers visiting the Guadalupe Mountain National Park often stop in Van Horn, Texas for a respite at the historic El Capitan Hotel. Holly Aguirre / The National
Architect Henry Charles Trost designed buildings all across Texas, Arizona and New Mexico. This is the Hotel El Capitan interior garden. Holly Aguirre / The National
Architect Henry Charles Trost designed buildings all across Texas, Arizona and New Mexico. This is the Hotel El Capitan interior garden. Holly Aguirre / The National
Hotel El Capitan lobby. Holly Aguirre / The National
Hotel El Capitan lobby. Holly Aguirre / The National
Hotel El Capitan hallway. Holly Aguirre / The National
Hotel El Capitan hallway. Holly Aguirre / The National
Some of the rooms at the Hotel El Capitan overlook the courtyard. Hotel El Capitan
Some of the rooms at the Hotel El Capitan overlook the courtyard. Hotel El Capitan
Your four-legged friends are welcome at the Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National
Your four-legged friends are welcome at the Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National
The entrance to the historic Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National
The entrance to the historic Hotel El Capitan in Van Horn, Texas. Holly Aguirre / The National
postcard
postcard
An aerial view shows the logo of the Van Horn Eagles football team on a water tower in Van Horn, Texas where- Blue Origin held several rocket launches last year. AFP
An aerial view shows the logo of the Van Horn Eagles football team on a water tower in Van Horn, Texas where- Blue Origin held several rocket launches last year. AFP
Cody Colchado and Lupe Colchado eat lunch at the Chuy's Mexican restaurant before Jeff Bezos’ scheduled launch in his Blue Origin rocket from a launchpad in West Texas on July 19, 2021 in Van Horn, Texas. Getty Images / AFP
Cody Colchado and Lupe Colchado eat lunch at the Chuy's Mexican restaurant before Jeff Bezos’ scheduled launch in his Blue Origin rocket from a launchpad in West Texas on July 19, 2021 in Van Horn, Texas. Getty Images / AFP
Hikers visiting the Guadalupe Mountains National Park often take a rest in the shady Grotto, which provides a picturesque setting for a picnic and a rest while hiking in McKittrick Canyon. Photo by National Parks Service
Hikers visiting the Guadalupe Mountains National Park often take a rest in the shady Grotto, which provides a picturesque setting for a picnic and a rest while hiking in McKittrick Canyon. Photo by National Parks Service
The Ship on the Desert is an early example of 20th-century modernism, distinct for West Texas and sits at the base of the Guadalupe Mountains National Park, an hour north of Van Horn, Texas. Photo by National Parks Service
The Ship on the Desert is an early example of 20th-century modernism, distinct for West Texas and sits at the base of the Guadalupe Mountains National Park, an hour north of Van Horn, Texas. Photo by National Parks Service
Van Horn, Texas is the last stop before the turnoff to Marfa, a tiny artist town put on the map after James Dean starred in "Giant", which was filmed there in 1956. Holly Aguirre / The National
Van Horn, Texas is the last stop before the turnoff to Marfa, a tiny artist town put on the map after James Dean starred in "Giant", which was filmed there in 1956. Holly Aguirre / The National
Longfellow Ranch is a working cattle ranch and includes the Pinon gas field which offers five-star room and dining facilities for corporate events and guests. Photo: RanchWork
Longfellow Ranch is a working cattle ranch and includes the Pinon gas field which offers five-star room and dining facilities for corporate events and guests. Photo: RanchWork
Jeff Bezos bought Longfellow Ranch in 2005, according to NBC News, which is the same time the billionaire bought 66.773 hectares in West Texas. Photo: RanchWork
Jeff Bezos bought Longfellow Ranch in 2005, according to NBC News, which is the same time the billionaire bought 66.773 hectares in West Texas. Photo: RanchWork
NBC News reported that Jeff Bezos bought the Longfellow Ranch in 2005, which was the same year he bought 66,773 hectares in same area. Photo: RanchWork
NBC News reported that Jeff Bezos bought the Longfellow Ranch in 2005, which was the same year he bought 66,773 hectares in same area. Photo: RanchWork
The Blue Origin launch site and facility are located near Van Horn in West Texas. Photo: Blue Origin
The Blue Origin launch site and facility are located near Van Horn in West Texas. Photo: Blue Origin

Bloomberg News contributed reporting

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Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
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Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

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Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
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Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

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Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

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What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

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