Tag Archive for 'highways'

Roadtec Reviews Its 2016 Performance and Looks At 2017 Possibilities

Roadtec, Inc., an Astec Industries company finished 2016 exceeding its sales performance goals and is expecting 2017 to be even better. Founded in 1981, Roadtec is an asphalt milling and paving equipment manufacturer based in Chattanooga, Tennessee.

2016 Performance

The asphalt paving market benefited from the passage of the 6-year FAST-ACT Highway Bill on December 4, 2015. Astec Industries and Roadtec were instrumental in an industry-wide campaign that resulted in 200,000 emails, letters, and calls to legislators urging them to pass the bill.

“Through these efforts and many others in our industry, jobs were created, optimism returned, new roads began the design cycle, and our customers started buying new equipment again,” stated John J. Irvine III, president of Roadtec. “Roadtec experienced a 10% growth in sales for the year, right from the beginning of the year.”

The passing of the FAST-ACT Highway Bill was considered the catalyst in 2016. In that year, the company hired and trained more than 100 new factory employees and signed nine new equipment dealers. The dealers represent Roadtec in 15 states, where they have been trained in service and sales support. The dealers are fully stocked with parts and components, and carry inventories of machines to facilitate timely deliveries.

“We feel the market in 2016 had a real wait and see attitude up until the election,” Irvine said. “With the current administration’s plans for a $1 trillion infrastructure program over 10 years, we are very optimistic about our industry.”

A significant contributor to the company’s success in 2016 was its Guardian™ Telematics System for Roadtec e-series milling machines or cold planers, pavers, and shuttle buggy material transfer vehicles. The Guardian Telematics System is designed to diagnose service issues and provide production reports. With the software, a contractor can log into the machine from any computer and the equipment operator can view the information on the machine’s display screen in the operator’s compartment. The same information is available to the Roadtec service center remotely where technicians are available on a 24/7 basis to troubleshoot problems and reset fault codes. Circuits and systems are displayed as live schematics to help identify and solve issues quickly.

The Roadtec Guardian software received significant refinements and enhancements in 2016. The telematics system can now monitor the equipment for possible electrical or hydraulic failures before they occur, sends emails to the Roadtec service center and the customer when systems are outside preset parameters.

“In a sense, we are developing the ‘Holy Grail’ on how to maintain and prevent failures in the field,” Irvine said. “Roadtec can service a machine in the field and fix many items over the internet, update programming, and even locate lost machines via GPS tracking.”

“We were not expecting a big year because the two previous years we had bet on a new highway program and lost,” said Irvine. “Ending 2015, we were carrying too much inventory. We liquidated most of our finished goods inventory by year’s end and, of course, a bill was passed in December. We had a small amount of component inventory coming in first quarter 2016. We rallied and turned it up, hiring people, training, pulling component purchases up in our schedule and finished with our best year ever.”

2017 Expectations

A core element of the Roadtec business model has changed, which the company management expects will have a positive impact on its 2017 performance. From the beginning, Roadtec has sold directly to its customers and provided start-up and service technicians from its Chattanooga base of operations.

“We have shifted our model from selling and servicing direct to the customers because they were telling us, ‘we love your company, we love your equipment, but we need local parts and service support,’” Irvine said. “Our sales had plateaued and to grow we needed that local presence, thus our decision to add qualified, quality dealers who can service and sell our products to the level we provide.”

A challenge for Roadtec has been reaching customers in the less populated areas. Plus, there just weren’t enough service staff to start-up every machine sold in the Spring-season crunch each year.

“With the addition of dealers to our business model, we have not cut one head at Roadtec,” stated Irvine. “We plan to keep all the good people our customers have leaned on in the past to help them be successful. These people will also be training dealer personnel so we can multiply ourselves to service and better support our customers in the field wherever they are located.”

Roadtec continues to look for dealers “that are financially sound, have experience in our industry, and most importantly align with our core principles of ‘taking care of customers, honesty and integrity in all we do, and respecting all individuals,’ Irvine added. “These are critical values that our employees, suppliers, and dealers must adhere to. We have signed four additional dealers since the first of the year covering 10 more states. These are experienced roadbuilding dealers that know the business.”

For 2017, the company will be pursing markets west of the Mississippi which will be easier to target through its newly established dealer network.

Roadtec is expecting growth in all the states that have passed new gas taxes that will allow them to get FAST-ACT Highway Bill matching federal funds to build new and repair existing roads in their respective states.

New products or product line expansions for 2017 include the Guardian Telematics System which is now available on the Shuttle Buggy SB2500, a new Tier 4 Final SX-6 Soil Stabilizer, and a new MTV1100e Material Transfer Vehicle. The company is entering its second year of production for the new RP170e and RP175e Tier 4 final asphalt pavers and they are in production of the CB100 Conveyor Broom. Various ancillary options are being added to all other equipment as part of the company’s on-going product improvement program.

Additionally, Roadtec has three goals for 2017 according to John J. Irvine III:

We want to have the safest year we have ever had at Roadtec and wish the same for our customers. Our employees know we care about them and place a premium on their safety.

We have an internal goal of 20% sales growth. We can accomplish this aggressive goal with the help of our new dealer partners.

We want to turn our inventory 4-5 times this year with more seasonal forecasting of parts. Our parent, Astec Industries, is making an investment in Roadtec’s shop so we can turn completed machines quicker and supply parts in a timelier manner.

As Irvine reflected on the company accomplishments in 2016 and the expectations for 2017, he concluded: “Traditionally, the second year of a highway bill is the great year. The first year, states and specifying agencies are designing new projects and securing funding. The second year, they let the projects and optimism abounds. This is that year. We are going to enjoy it!”

About Roadtec

Roadtec, Inc., Chattanooga, Tenn., is a part of ASTEC Industries. Founded in 1981, the company engineers, designs, and manufactures road construction equipment that includes asphalt pavers, asphalt milling machines, asphalt screeds, stabilizers / reclaimers, material transfer vehicles, broom machines, and cold-in-place recycling trailers.

ARTBA Bridge Reports That There Are Nearly 56,000 American Bridges That Are Structurally Deficient

Nearly 56,000 American Bridges on Structurally Deficient List, New Analysis of Federal Data Shows

Data Available: www.artbabridgereport.org


List includes: Brooklyn & Throgs Neck (N.Y.), Yankee Doodle (Conn.), Memorial (Va.-DC) and Greensboro (N.C.) Bridges.
1,900 structurally deficient bridges are on the Interstate Highway System.
Average age of a structurally deficient bridge is 67 years old, compared to 39 years for non-deficient bridges.
41% of U.S. bridges (250,406) are over 40 years old and have not had major reconstruction work.
Website features listing of deficient bridges by state and congressional district.

(WASHINGTON) – The length of the nation’s structurally deficient bridges if placed end-to-end would stretch 1,276 miles, half the distance from New York to Los Angeles, a new examination of federal government data shows. It’s a problem that hits close to home.

An analysis of the U.S. Department of Transportation’s (U.S. DOT) recently-released 2016 National Bridge Inventory data finds cars, trucks and school buses cross the nation’s 55,710 structurally compromised bridges 185 million times daily. About 1,900 are on the Interstate Highway System. State transportation departments have identified 13,000 Interstate bridges that need replacement, widening or major reconstruction.

The inventory of structurally deficient bridges has declined 0.5 percent since the 2015 report. At that pace, it would take more than two decades to replace or repair all of them, according to American Road & Transportation Builders Association (ARTBA) Chief Economist Dr. Alison Premo Black, who conducted the analysis.

Black says the data shows 28 percent of bridges (173,919) are over 50 years old and have never had any major reconstruction work in that time.

“America’s highway network is woefully underperforming. It is outdated, overused, underfunded and in desperate need of modernization,” Black says. “State and local transportation departments haven’t been provided the resources to keep pace with the nation’s bridge needs.”

To help ensure public safety, bridge decks and support structures are regularly inspected for deterioration and remedial action. They are rated on a scale of zero to nine—with nine meaning the bridge is in “excellent” condition. A bridge is classified as structurally deficient and in need of repair if its overall rating is four or below.

While these bridges may not be imminently unsafe, they are in need of attention.

Other key findings in the ARTBA analysis:

Iowa (4,968), Pennsylvania (4,506), Oklahoma (3,460), Missouri (3,195), Nebraska (2,361), Illinois (2,243), Kansas (2,151), Mississippi (2,098), Ohio (1,942) and New York (1,928) have the most structurally deficient bridges. The District of Columbia (9), Nevada (31), Delaware (43), Hawaii (64) and Utah (95) have the least.

At least 15 percent of the bridges in eight states—Rhode Island (25 percent), Iowa (21 percent), Pennsylvania (20 percent), South Dakota (20 percent), West Virginia (17 percent), Nebraska (15 percent), North Dakota (15 percent) and Oklahoma (15 percent)—fall in the structurally deficient category.
State—and congressional district—specific information from the analysis—including rankings and the locations of the 250 most heavily travelled structurally deficient bridges in the nation and top 25 most heavily traveled in each state—is available at www.artbabridgereport.org.

Established in 1902, Washington, D.C.-based ARTBA is the “consensus voice” of the U.S. transportation design and construction industry before Congress, the White House, federal agencies, news media and the general public.

TRIP Reports:Driving on deficient roads costs Alabama motorists a total of $4.2 billion annually in the form of additional vehicle operating costs (VOC), congestion-related delays and traffic crashes.



Meeting the State’s Need for Safe, Smooth and

Efficient Mobility

Ten Key Transportation Numbers in Alabama



$4.2 billion

Driving on deficient roads costs Alabama motorists a total of $4.2 billion annually in the form of additional vehicle operating costs (VOC), congestion-related delays and traffic crashes.

Birmingham: $1,663

Huntsville: $1,325

Mobile: $1,437

Montgomery: $1,296

TRIP has calculated the cost to the average motorist in Alabama’s largest urban areas in the form of additional VOC, congestion-related delays and traffic crashes. Driving on deficient roads costs the average Birmingham area driver $1,663 annually, while the average driver in the Huntsville area loses $1,325 each year. The average driver in the Mobile area loses $1,437 annually and the average Montgomery area driver loses $1,296.


A total of 4,280 people were killed in Alabama traffic crashes from 2011 to 2015, an average of 856 fatalities annually.


Alabama’s roads and highways have a fatality rate of 1.26 fatalities per 100 million vehicle miles of travel, significantly higher than the national average of 1.13.


The fatality rate on Alabama’s rural roads is more than double the fatality rate on all other roads in the state (1.96 fatalities per 100 million VMT vs. 0.92).


Statewide, 19 percent of Alabama’s major urban roads are in poor condition. Forty-one percent are in mediocre or fair condition and the remaining 40 percent are in good condition.
$436 Billion Annually, $436 billion in goods are shipped to and from sites in Alabama, mostly by truck.


Eight percent of the state’s bridges are structurally deficient, meaning they have significant deterioration to the major components of the bridge.
Birmingham: 34 hours

Huntsville: 23 hours

Mobile: 30 hours

Montgomery: 24 hours

Congestion is robbing Alabama drivers of time and money. The average driver in the Birmingham area loses 34 hours annually to congestion, while drivers in the Huntsville area lose 23 hours each year. Mobile area drivers spend an average of 30 hours each year stuck in traffic, while Montgomery area drivers lose 24 hours annually.

$1.00 = $5.20

The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs, and reduced emissions as a result of improved traffic flow.

Executive Summary

Nine years after the nation suffered a significant economic downturn, Alabama’s economy continues to rebound. The rate of economic growth in Alabama, which will be greatly impacted by the reliability and condition of the state’s transportation system, continues to have a significant impact on quality of life in the Yellowhammer State.

An efficient, safe and well-maintained transportation system provides economic and social benefits by affording individuals access to employment, housing, healthcare, education, goods and services, recreation, entertainment, family, and social activities. It also provides businesses with access to suppliers, markets and employees, all critical to a business’ level of productivity and ability to expand. Reduced accessibility and mobility – as a result of traffic congestion, a lack of adequate capacity, or deteriorated roads, highways, bridges and transit facilities – diminishes a region’s quality of life by reducing economic productivity and limiting opportunities for economic, health or social transactions and activities.

With an economy based largely on agriculture, manufacturing, aerospace, forestation and natural resource extraction, the quality of Alabama’s transportation system plays a vital role in the state’s economic growth and quality of life.

In this report, TRIP looks at the top transportation numbers in Alabama as the state addresses its need to modernize and maintain its system of roads, highways, bridges and transit.

In December 2015 the president signed into law a long-term federal surface transportation program that includes modest funding increases and allows state and local governments to plan and finance projects with greater certainty through 2020. The Fixing America’s Surface Transportation Act (FAST Act) provides approximately $305 billion for surface transportation with highway and transit funding slated to increase by approximately 15 and 18 percent, respectively, over the five-year duration of the program. While the modest funding increase and certainty provided by the FAST Act are a step in the right direction, the funding falls far short of the level needed to improve conditions and meet the nation’s mobility needs and fails to deliver a sustainable, long-term source of revenue for the federal Highway Trust Fund.


An inadequate transportation system costs Alabama motorists a total of $4.2 billion every year in the form of additional vehicle operating costs (VOC), congestion-related delays and traffic crashes.

  • Driving on rough roads costs Alabama motorists a total of $1.5 billion annually in extra vehicle operating costs. Costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.
  • Traffic crashes in which roadway design was likely a contributing factor cost Alabama residents a total of $1.5 billion each year in the form of lost household and workplace productivity, insurance and other financial costs.
  • Traffic congestion costs Alabama residents a total of $1.2 billion each year in the form of lost time and wasted fuel.
  • The chart below details the average cost per driver in the state’s largest urban areas as well as statewide.



The rate of population and economic growth in Alabama have resulted in increased demands on the state’s major roads and highways, leading to increased wear and tear on the transportation system.

  • Alabama’s population reached approximately 4.9 million residents in 2015, a nine percent increase since 2000.
  • Alabama had 3.9 million licensed drivers in 2014.
  • Vehicle miles traveled (VMT) in Alabama increased 21 percent from 56.5 billion VMT in 2000 to 68.5 billion VMT in 2015. VMT in Alabama during the first six months of 2016 was 3.3 percent higher than during the first six months of 2015.
  • From 2000 to 2015, Alabama’s gross domestic product, a measure of the state’s economic output, increased by 22 percent, when adjusted for inflation.


A lack of adequate state and local funding has resulted in 19 percent of major urban roads and highways in Alabama having pavement surfaces in poor condition, providing a rough ride and costing motorists in the form of additional vehicle operating costs.

  • The pavement data in this report, which is for all arterial and collector roads and highways, is provided by the Federal Highway Administration (FHWA), based on data submitted annually by the Alabama Department of Transportation Cabinet (ALDOT) on the condition of major state and locally maintained roads and highways.
  • Pavement data for Interstate highways and other principal arterials is collected for all system mileage, whereas pavement data for minor arterial and all collector roads and highways is based on sampling portions of roadways as prescribed by FHWA to insure that the data collected is adequate to provide an accurate assessment of pavement conditions on these roads and highways.
  • Nineteen percent of Alabama’s major urban locally and state-maintained roads are in poor condition, while 41 percent are in mediocre or fair condition. The remaining 40 percent are in good condition.
  • The chart below details the share of major roads in poor, mediocre, fair and good condition in the state’s largest urban areas.


  • Roads rated in mediocre to poor condition may show signs of deterioration, including rutting, cracks and potholes.       In some cases, these roads can be resurfaced, but often are too deteriorated and must be reconstructed.
  • Driving on rough roads costs Alabama motorists a total of $1.5 billion annually in extra vehicle operating costs. Costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.


Approximately one in twelve of locally and state-maintained bridges in Alabama show significant deterioration or do not meet current design standards often because of narrow lanes, inadequate clearances or poor alignment. This includes all bridges that are 20 feet or more in length.

  • Eight percent of Alabama’s bridges are structurally deficient. A bridge is structurally deficient if there is significant deterioration of the bridge deck, supports or other major components. Structurally deficient bridges are often posted for lower weight or closed to traffic, restricting or redirecting large vehicles, including commercial trucks and emergency services vehicles. 
  • The chart below details bridge conditions statewide and in Alabama’s largest urban areas.


Improving safety features on Alabama’s roads and highways would likely result in a decrease in the state’s traffic fatalities and serious crashes. It is estimated that roadway features are likely a contributing factor in approximately one-third of all fatal and serious traffic crashes.

  • A total of 4,280 people were killed in Alabama traffic crashes from 2011 to 2015, an average of 856 fatalities per year.
  • Alabama’s overall traffic fatality rate of 1.26 fatalities per 100 million vehicle miles of travel in 2014 was significantly higher than the national average of 1.13.
  • The fatality rate on Alabama’s non-interstate rural roads in 2015 was more than double that on all other roads in the state (1.96 fatalities per 100 million vehicle miles of travel vs. 0.92).
  • In the Birmingham urban area, an average of 83 people were killed in traffic crashes over the last three years, while an average of 30 people were killed in traffic crashes in the Huntsville urban area during that time. An average of 71 people were killed in crashes in the Mobile area over the last three years, while in Montgomery, there was an average of 31 annual traffic fatalities over the last three years.
  • Traffic crashes in Alabama imposed a total of $4.6 billion in economic costs in 2014. TRIP estimates that traffic crashes in which roadway features were likely a contributing factor imposed $1.5 billion in economic costs in 2014.
  • Roadway features that impact safety include the number of lanes, lane widths, lighting, lane markings, rumble strips, shoulders, guard rails, other shielding devices, median barriers and intersection design. The cost of serious crashes includes lost productivity, lost earnings, medical costs and emergency services.
  • Several factors are associated with vehicle crashes that result in fatalities, including driver behavior, vehicle characteristics and roadway features. TRIP estimates that roadway features are likely a contributing factor in approximately one-third of fatal traffic crashes.
  • Where appropriate, highway improvements can reduce traffic fatalities and crashes while improving traffic flow to help relieve congestion. Such improvements include removing or shielding obstacles; adding or improving medians; improved lighting; adding rumble strips, wider lanes, wider and paved shoulders; upgrading roads from two lanes to four lanes; and better road markings and traffic signals.
  • Investments in rural traffic safety have been found to result in significant reductions in serious traffic crashes. A 2012 report by the Texas Transportation Institute (TTI) found that improvements completed recently by the Texas Department of Transportation that widened lanes, improved shoulders and made other safety improvements on 1,159 miles of rural state roadways resulted in 133 fewer fatalities on these roads in the first three years after the improvements were completed (as compared to the three years prior).   TTI estimates that the improvements on these roads are likely to save 880 lives over 20 years.


Increasing levels of traffic congestion cause significant delays in Alabama, particularly in its larger urban areas, choking commuting and commerce. Traffic congestion robs commuters of time and money and imposes increased costs on businesses, shippers and manufacturers, which are often passed along to the consumer.

  • The chart below details what congestion costs the average driver in the state’s largest urban areas in the form of lost time and wasted fuel and the number of hours lost annually to congestion.Increasing levels of congestion add significant costs to consumers, transportation companies, manufacturers, distributors and wholesalers and can reduce the attractiveness of a location to a company when considering expansion or where to locate a new facility. Congestion costs can also increase overall operating costs for trucking and shipping companies, leading to revenue losses, lower pay for drivers and employees, and higher consumer costs.


Investment in Alabama’s roads, highways and bridges is funded by local, state and federal governments. The current five-year federal surface transportation program includes modest funding increases and provides states with greater funding certainty, but falls far short of providing the level of funding needed to meet the nation’s highway and transit needs. The bill does not include a long-term and sustainable revenue source.

  • According to the 2015 AASHTO Transportation Bottom Line Report, a significant boost in investment in the nation’s roads, highways, bridges and public transit systems is needed to improve their condition and to meet the nation’s transportation needs.
  • AASHTO’s report found that based on an annual one percent increase in VMT annual investment in the nation’s roads, highways and bridges needs to increase 36 percent, from $88 billion to $120 billion, to improve conditions and meet the nation’s mobility needs, based on an annual one percent rate of vehicle travel growth. Investment in the nation’s public transit system needs to increase from $17 billion to $43 billion.
  • The Bottom Line Report found that if the national rate of vehicle travel increased by 1.4 percent per year, the needed annual investment in the nation’s roads, highways and bridges would need to increase by 64 percent to $144 billion. If vehicle travel grows by 1.6 percent annually the needed annual investment in the nation’s roads, highways and bridges would need to increase by 77 percent to $156 billion.


The efficiency of Alabama’s transportation system, particularly its highways, is critical to the health of the state’s economy. Businesses rely on an efficient and dependable transportation system to move products and services. A key component in business efficiency and success is the level and ease of access to customers, markets, materials and workers.

  • Annually, $436 billion in goods are shipped to and from sites in Alabama, mostly by truck.
  • Eighty-one percent of the goods shipped annually to and from sites in Alabama are carried by trucks and another 12 percent are carried by courier services or multiple mode deliveries, which include trucking.
  • Increasingly, companies are looking at the quality of a region’s transportation system when deciding where to re-locate or expand. Regions with congested or poorly maintained roads may see businesses relocate to areas with a smoother, more efficient and more modern transportation system.
  • Highway accessibility was ranked the number two site selection factor behind only the availability of skilled labor in a 2015 survey of corporate executives by Area Development Magazine.
  • The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs and reduced emissions as a result of improved traffic flow.

Sources of information for this report include the Federal Highway Administration (FHWA), the American Association of State Highway and Transportation Officials (AASHTO), the Bureau of Transportation Statistics (BTS), the U.S. Census Bureau, the Texas Transportation Institute (TTI) and the National Highway Traffic Safety Administration (NHTSA).



Reuters Reports: U.S. Senate approves Chao to lead Transportation Department & Chao Homecoming

Reuters Reports: U.S. Senate approves Chao to lead Transportation Department


By David Shepardson | WASHINGTON

Elaine Chao, a former top U.S. labor official, was sworn in on Tuesday to lead the U.S. Transportation Department, which overseas aviation, vehicle, train and pipeline safety.

Chao, a former U.S. labor secretary and deputy transportation secretary, took office hours after the U.S. Senate voted 93 to 6 to confirm her.

Chao, 63, will face key decisions on how to regulate the growing use of drones and automakers’ plans to offer self-driving cars.

She will also be a key player in President Donald Trump’s Cabinet if his administration pushes ahead with a major infrastructure spending program, as the businessman-turned-politician promised during last year’s presidential campaign.

“Your leadership and your experience will serve well as the secretary of transportation, overseeing what we anticipate will be historic investments in our nation’s roads, bridges, airports and above all in our future,” said Vice President Mike Pence, who administered the oath of office to Chao.

Chao tweeted: “It is an honor to rejoin the extraordinary people of @USDOT and begin working to rebuild America’s infrastructure.”

The Transportation Department has a $75 billion annual budget and about 60,000 employees. It includes the Federal Aviation Administration, which handles air traffic control.

Chao, the wife of Republican Senate Majority Leader Mitch McConnell and the first Asian-American woman to hold a Cabinet position, also will have to decide whether U.S. fuel efficiency standards should be revised, as some automakers have sought.

There are dozens of other pending regulatory issues facing the next administration, including railroad safety and staffing rules and whether to set rules requiring airlines to give more passengers with disabilities seats with extra leg room and whether to ban or restrict personal phone calls on U.S. flights.

At her confirmation hearing this month, Chao declined to take positions on a number of issues, including whether air traffic control jobs should be privatized, concerns over the safety of shipments of crude oil by rail, foreign airlines’ push to move into the U.S. market and regulation of developing technologies.

Posted by Secretary of Transportation Elaine Chao
The US Department of Transportation (U.S. DOT) plays an important role in maintaining and improving the safety and efficiency of our nation’s transportation infrastructure. This includes highways, bridges, tunnels, railways, airports, air traffic control, seaports, mass transit systems and pipelines. Our infrastructure is the backbone of our economy, making it possible to move people, goods, services and raw materials safely from our homes, factories, farms, and mines to and from destinations throughout our nation, and across the world.

America’s transportation infrastructure underpins our world-class economy and is a key factor in productivity growth, which has provided good jobs for millions of hard working Americans and a standard of living that is the envy of the world. And while our transportation infrastructure has given us unprecedented mobility for many years, it is increasingly in need of repair and refurbishment. Another challenge facing the transportation infrastructure is how to incorporate new technology and innovations, including drones and autonomous vehicles.

Caterpillar to Establish Global Headquarters in Chicago Area

Company will maintain significant presence in Peoria area

  • New location will improve access to global customers, dealers and Caterpillar’s worldwide operations, while also enhancing executive recruitment
  • Peoria, Illinois, area will continue to have largest concentration of employees in the world
  • Previously announced Peoria headquarters complex will not be built

 Caterpillar Inc. (NYSE: CAT) announced today it will locate a limited group of senior executives and support functions in the Chicago area later this year and reaffirmed the ongoing importance of its presence in Peoria and Central Illinois.

“Caterpillar’s Board of Directors has been discussing the benefits of a more accessible, strategic location for some time,” said Caterpillar CEO Jim Umpleby. “Since 2012, about two-thirds of Caterpillar’s sales and revenues have come from outside the United States. Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently.”

“We value our deep roots in Central Illinois, and Peoria will continue to be our hometown. The vast majority of our people will remain in this important region where we have many essential facilities and functions,” added Umpleby. “The new location is also an opportunity to add to our talented team while improving the productivity of our senior leaders.”

As a result of continuing challenging market conditions and the need to prioritize resources to focus on growth, Caterpillar will not build the previously announced headquarters complex in Peoria. The current headquarters building will continue to be used for Caterpillar offices.

Over the last five years, even while facing these challenging conditions, Caterpillar, along with its employees and retirees, has contributed more than $60 million to support thousands of families, organizations and programs across Central Illinois. The company will continue its philanthropic support and deep civic involvement in the Peoria area.

“As mayor, I never want jobs moving out of the city. However, the overwhelming majority of Caterpillar employees and their families based in the Peoria area won’t be impacted by this decision. I’m pleased Caterpillar continues to call Peoria its hometown,” said Peoria Mayor Jim Ardis.

“If Caterpillar succeeds globally, we win in Central Illinois. I’m disappointed we can’t keep every job here, but if moving some of its team near Chicago helps Caterpillar thrive, it will benefit Peoria, our county and the surrounding communities,” said Peoria County Board Chairman Andrew Rand.

A limited number of senior executives will move into leased office space beginning in 2017. Once the new location is fully operational, Caterpillar expects about 300 employees to be based there, which includes some positions relocated from the Peoria area.

About Caterpillar
For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2016 sales and revenues of $38.537 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.