Caterpillar CEO Doug Oberhelman told reporters in Peoria, Ill., this week that Caterpillar has no plans to leave the state, despite being wooed by other states. Oberhelman recently warned Illinois governor Pat Quinn that a tax increase, created because of an $8 billion budget deficit, will cost Caterpillar workers $40 million per year.
Oberhelman recently wrote to the governor about other states attempting to entice Caterpillar to move after the income tax hike. However, after meeting with the governor this week, Oberhelmen emphasized that his letter was not a threat, but rather meant to stimulate dialog regarding the state’s business environment. Oberhelman told reporters that Caterpillar, which employs 23,000 workers in Illinois, has no plans to relocate. Caterpillar has stated in the past that the income tax increase makes it more difficult for the company to attract employees such as engineers.
Quinn has emphasized the need to reform the state’s workers’ compensation system and double state exports in five years by increasing trade with Latin America and Africa. He asked Oberhelman to be part of a state export council to help reach that goal.