Caterpillar said Wednesday it plans to invest about $1 billion in North Carolina to expand its manufacturing capacity for compact equipment in response to rising customer demand.
New facility in Sanford
The plan includes building a new manufacturing facility in Sanford to increase production of compact track loaders and telehandlers, two types of equipment used in construction, landscaping, agriculture and material handling.
Rod Shurman, president of Caterpillar's Construction Industries Group, said the company is increasing its investments to keep pace with growing demand for compact equipment and support its customer base in the expanding segment.
Jobs in automation and digital manufacturing
The new facility is expected to create jobs in automation, robotics, digital manufacturing and production systems, while strengthening the company's manufacturing capabilities in the United States.
The facility is intended to increase production capacity and meet customer needs across various sectors, while supporting Caterpillar's manufacturing operations in the United States.
Data centers boost demand
The move follows higher orders for Caterpillar's construction equipment over the past few quarters, amid an expansion in data-center construction across the United States.
The construction of data centers is increasing demand for construction equipment, as well as equipment needed to provide backup power for operating the facilities. This is prompting the company to expand its production capacity to keep pace with the growth of digital infrastructure and construction projects.
