Caterpillar investing $1B to grow compact manufacturing capacity

Caterpillar Inc. announced plans to invest approximately $1 billion in its Sanford, N.C., manufacturing facility to expand capacity for products that support its growing Cat Compact business, specifically compact track loaders and telehandlers.

The investment is designed to increase production of Caterpillar compact track loaders and telehandlers. (Photo: Caterpillar)

“As demand for compact equipment continues to increase, we’re investing to better serve this growing segment of customers,” said Rod Shurman, Caterpillar Construction Industries Group President. “This investment is another way we are solving our customers’ toughest challenges by expanding access to the products, solutions and services they need to work more efficiently.”

The announcement said the funds will be used to create a modern, technology-enabled manufacturing environment designed to improve safety, quality and operational performance while supporting long-term growth. The facility is expected to include advanced manufacturing technologies, automation, digital production systems and integrated logistics capabilities.

According to Caterpillar, North Carolina was selected for the expansion because of the company’s longstanding presence in the state, the strength of the local workforce and the opportunity to build on existing manufacturing expertise and operations in Sanford, the announcement noted. Reports from local media also indicate county and city officials approved incentives worth up to $85.5 million to encourage the firm to continue its operations in the area.

“We appreciate the partnership and support of the State of North Carolina, Lee County and the City of Sanford as we continue investing in the future of manufacturing and the customers we serve,” Shurman stated.

The announced investment also comes just months after Caterpillar cited plans to add 600 jobs at the North Carolina plant, bringing total employment in the area to nearly 2,000. While no additional jobs were announced, the project is expected to create opportunities for advanced manufacturing careers while helping employees develop skills in areas such as automation, robotics, digital manufacturing and advanced production systems.