Caterpillar has chosen North Carolina for a new manufacturing plant, saying it plans to invest $1 billion to expand production for compact track loaders and telehandlers in the state.
The company currently owns a compact track loader plant in Sanford, where the new plant will be located. Telehandlers will be added to the mix. Caterpillar has increased hiring there by 600 workers this year. In all, it has about 2,000 employees at the site.
Cat plans to train its workers already in Sanford, where it has been for 25 years, to move to the plant after it is built.
“The existing Sanford campus will continue operating as normal as we execute our plans for additional capacity with the new Sanford location,” said Lisa Miller, Caterpillar senior media relations specialist. “For the new facility, we do not expect to increase our workforce in Sanford. Our existing workforce will be upskilled to be ready to operate in a more technology-enabled manufacturing environment and support the continued growth of the Cat Compact business.”
The plant will be designed to “create a modern, technology-enabled manufacturing environment designed to improve safety, quality and operational performance while supporting long-term growth,” the company says. “The facility is expected to incorporate advanced manufacturing technologies, automation, digital production systems and integrated logistics capabilities to create a more connected and efficient operation.”
Powered byLocal and state governments offered $85 millions in tax incentives to entice Caterpillar to stay in North Carolina, as the company was also eyeing South Carolina and other states for the new plant, according to WRAL News. Under the deal, Caterpillar must employ at least 1,950 workers making, on average, $65,500 a year, along with the $1 billion investment.
Caterpillar says it chose North Carolina because of its “longstanding presence in the state, the strength of the local workforce and the opportunity to build on existing manufacturing expertise and operations in Sanford.”
As for why the new manufacturing facility, the company cited the growing demand for compact equipment.
“As demand for compact equipment continues to increase, we're investing to better serve this growing segment of customers,” says Caterpillar Construction Industries Group President Rod Shurman.
Compact track loaders are the most popular construction equipment category by new financed sales in the U.S., and Caterpillar is ranked as the top-selling CTL brand, according to EDA equipment finance data. Nearly 57,000 units were sold from July 2025 to June 2026, with Caterpillar accounting for nearly one-fourth of that amount. (EDA and Equipment World are both owned by Fusable.)
Caterpillar has also been producing its own telehanders, rolling out four next-generation models in 2025 to replace its earlier TL Series manufactured by JLG. The TH Series ranges from rated operating capacities of 6,000 to 12,000 pounds and is manufactured at the company’s plant in Leicestershire, United Kingdom.
