Caterpillar to Invest $1 Billion in North Carolina Compact Equipment Plant

Caterpillar announced Wednesday it will invest approximately $1 billion to build a manufacturing facility in Sanford, North Carolina, dedicated to producing compact track loaders and telehandlers under its Cat Compact strategy targeting small contractors. The company said the project will not add headcount. Instead, Caterpillar plans to retrain its existing Sanford workforce, currently about 2,000 employees, for advanced production roles. The facility will incorporate automation, robotics and digital production systems. Local officials approved incentives worth up to $85.5 million, including $46 million in tax rebates from Lee County and $39.5 million from Sanford, paid over 12 years. Full incentives require Caterpillar to meet the $1 billion investment threshold and maintain at least 1,950 full-time positions averaging about $65,500 in annual pay. Caterpillar reported 2025 sales and revenues of $67.6 billion. North Carolina was selected over competing states, including South Carolina, citing existing operations and workforce strength.