Caterpillar Inc.

Company Information

• Date founded: 1925
• Industry: heavy equipment
• Corporate headquarters: Peoria, Illinois
• Type: Public

Overview

Caterpillar Inc. is an American company that sells heavy equipment, engines, gas turbines, and diesel-electric locomotives. It also provides financial and insurance services and sells a line of clothing and accessories. Its products are recognized for the company's trademarked yellow color and CAT logo.

The company's roots were established in the late nineteenth century, and it was initially founded as an agricultural tractor company in 1925. Throughout the years that followed, Caterpillar began to delve into other industries and develop new machinery. Much of this machinery was used throughout the United States and several parts of the world to develop and construct much of the infrastructure that exists into the twenty-first century. Over time, Caterpillar acquired several other companies, expanded its machinery lines, and entered other industries.

Into the twenty-first century, Caterpillar continues to work on innovation and apply advanced technology to its brand. It serves 190 countries and works with more than 170 dealers worldwide to distribute its products and services. At the end of 2016, Caterpillar was worth nearly $46 billion, according to Forbes.

History

The Caterpillar Tractor Company originally was established in 1925, but its origins date back to the late nineteenth century. California inventor Daniel Best built a combine to harvest crops in the 1880s. He continued to work on it and developed other inventions to improve tractors. In 1908, he sold his company to Benjamin Holt of Holt Manufacturing Co., which produced a steam tractor that had tracks bolted to chains instead of wheels. Instead of rolling along, the machine "crawled" and was dubbed a "Caterpillar," a name Holt trademarked in 1910. Around the same time, Best's son, C.L. Best, who followed in his father's footsteps, established the C.L. Best Gas Tractor Co. Eventually, C.L. Best Gas Tractor and Holt Manufacturing merged and became Caterpillar Tractor Company in 1925.

In 1928, the company made its first acquisition, buying Russell Grader Manufacturing Company. Near the end of the decade, the United States and other nations throughout the world were experiencing an economic decline known as the Great Depression. In 1929, Caterpillar avoided financial ruin when it received an order from the Soviet Union for more than two thousand Caterpillar machines. The company continued to produce equipment into the 1930s that helped to construct significant infrastructure throughout the United States, including the Golden Gate Bridge in San Francisco, California; the Hoover Dam in Nevada; and the levee project in Mississippi. During World War II (1939–1945), Caterpillar built more than fifty thousand track-type military tractors to aid in the war effort. The company's workforce during this time doubled and operated seven days a week.

Caterpillar expanded internationally during the 1950s, establishing a subsidiary in Great Britain. Its equipment helped to establish a highway, which opened up transportation through the Andes Mountains in Venezuela. The company provided equipment to India, which used it to develop infrastructure and roadways throughout the country. Caterpillar equipment also was used to construct the event site for the 1956 Summer Olympics in Melbourne, Australia. The US military used the company's machines during Operation Deep Freeze missions (1955–1956) in Antarctica.

In the years that followed, Caterpillar continued to develop and expand its machinery lines and supply its products throughout the world. It also built upon its business, acquiring companies such as Towmotor Corporation, a forklift company in Mentor, Ohio, in 1965. Also in the 1960s, Caterpillar products were involved in the widening project of the Panama Canal and the construction of the Mangla Dam in Pakistan.

The company's international sales surpassed its national sales during the 1970s. In 1981, it bought the solar and turbomach divisions from the International Harvester Company, expanding Caterpillar's reach into gas turbines. However, by the following year, Caterpillar experienced its first financial loss. Despite this, it continued to work on new products and developments.

The company rebounded and began work on modernizing its factories in 1985. The project cost more than $1 billion and took until 1993 to complete. In 1986, the company dropped the word tractor from its name since its main industry had changed significantly throughout the years. It was renamed Caterpillar Inc. In the 1990s, several labor disputes and strikes hampered business for a time. These were eventually settled. Its products continued to be used abroad, such as to construct the Three Gorges Dam in China and Kansai International Airport in Osaka, Japan. The company continued to acquire companies, such as Perkins Limited, which produced diesel engines in the United Kingdom, in 1998.

After the terrorist attacks of September 11, 2001, Caterpillar sent equipment and workers to aid in the rescue and recovery efforts in New York City. The year also was significant for the company as it decided to remove itself from the agricultural tractor industry. It expanded into the rail industry in 2006 with the purchase of Progress Rail Services, and in 2010, it bought the German company MWM Holding GmbH, which manufactured gas- and diesel-powered generators. Also in 2010, Caterpillar made one of its largest purchases to date with the acquisition of mining equipment manufacturer Bucyrus International of Milwaukee, Wisconsin.

Into the 2010s, Caterpillar continued to grow and add new products and services. It added financial services to offer financing alternatives to its dealers and customers when purchasing equipment. It also expanded into the insurance industry, providing life, accident, and health care coverage. As of 2017, the company continues to focus innovation and sustainability to provide superior products and services to its customers.

Impact

Throughout the years, Caterpillar's products have helped to develop and construct much of the infrastructure in the United States and around the world. It serves an array of industries, from construction to transportation to financial services. As of 2017, Caterpillar continues to acquire new companies and industries in an effort to grow its brand and serve a variety of different markets.

Bibliography

"About Caterpillar." Caterpillar, www.caterpillar.com/en/company.html. Accessed 12 Apr. 2017.

"Caterpillar History." Cleveland Brothers, www.clevelandbrothers.com/caterpillar-history. Accessed 12 Apr. 2017.

"Company: Our Legacy." Caterpillar, www.caterpillar.com/en/company/history.html. Accessed 12 Apr. 2017.

"#155 Caterpillar." Forbes, www.forbes.com/companies/caterpillar. Accessed 12 Apr. 2017.

"Profile: Caterpillar Inc (CAT.N)." Reuters, in.reuters.com/finance/stocks/companyProfile?symbol=CAT.N. Accessed 12 Apr. 2017.

"A Timeline of Caterpillar Inc. through the Years." Journal Star, 24 Sept. 2013, www.pjstar.com/x1281956687/A-timeline-of-Caterpillar-Inc-through-the-years. Accessed 12 Apr. 2017.