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Caterpillar Logistics is modernizing its parts distribution operations. They will not be laying off any workers in their Morton, Illinois headquarters just outside of Peoria, Illinois. About 70 employees will relocate to the Waco area.
Caterpillar hopes to take advantage of warehousing and fulfillment in more modern facilities located closer to their ultimate destination.
In following many other distribution companies to Texas, Caterpillar should be able to capitalize on lower freight rates, cheaper labor rates, and faster more efficient delivery times. The bottom line is that location is key to logistics. If you want to run an alcohol rehab, you go to Malibu. If you want to run JIT logistics and fulfillment for parts, Ft Worth and Waco are the place to be in the middle of the country, Savannah, Georgia and South Carolina are the places to be in the South East, and if you can still afford it Ontario, California in the West.
Additional Coverage: Caterpillar Logistics to build plant