The History of Caterpillar

Caterpillar began its historical journey in the late 19th century. Back in 1890, two owners of different companies were conducting experiments on the efficiency of using tractors in agriculture. Benjamin Holt and Daniel Best were these two individuals, later becoming the founders of the "giant" Caterpillar. At that time, they were focused on improving and advancing the capabilities of tractors.

The Start of Big Changes

Their creation - the first steam tractor engine, invented in 1905, set an early example of Caterpillar machinery being used in construction and repair works. During the 1906 San Francisco earthquake, Caterpillar equipment successfully cleared debris and helped in the city's reconstruction efforts.

This success fueled the owners' confidence and desire to continue their work, leading to the development and release of upgraded models of machinery. Eight years after the creation of the steam engine tractor, new models were introduced with improved chassis, additional engine gears, and spring suspension systems.

That same year, the company made its first shipment of track tractors to Europe. The company's victory in a plowing competition earned them the opportunity to supply tractors to Russia, and they also supported Allied countries during World War I by providing machinery for wartime operations, producing around five thousand tractors during that time.

The next model was a track-wheel tractor with substantial power for its time: 75 horsepower.

Expansion and Firm Establishment

The shipment of tractors to Europe in 1921 marked another progressive step. These tractors were used in the construction of the Rhine-Main-Danube canal. In 1925, Benjamin Holt and Daniel Best merged their factories under one brand and name, which is considered the true establishment year of Caterpillar.

Just five years after the company's foundation, their equipment was already present on various construction sites across the globe.

During World War II, Caterpillar continued to supply machinery to Allies and introduced new models, including graders and power units in addition to traditional gasoline and diesel tractors. This marked the beginning of Caterpillar's production of the first construction automotive equipment.

Following the war, the company expanded its market and opened a plant in the UK, despite facing high import taxes. Subsequent equipment deliveries to India helped in developing the country's road networks.

Caterpillar's equipment was also used in Antarctic exploration, initially being the sole resource for such endeavors. This involvement began during U.S. military operations in 1955.

In 1965, the preparation works for the Olympic Games were carried out using Caterpillar equipment. Since then, their machinery has been the go-to choice for such preparation tasks.

Caterpillar played a significant role in establishing one of Japan's largest heavy equipment manufacturing enterprises. This began with the formation of a joint venture between Caterpillar and Mitsubishi, which eventually became the second-largest plant in Japan. This move marked Caterpillar's confident first step in conquering the Asian market.

Crisis and Key Rule

Subsequently, the company faced a crisis, sales decline, significant losses, reduced investments, which lasted for five years starting from 1982. Layoffs and salary cuts were necessary sacrifices made to stabilize the company's finances and operations.

After the crisis, the company established a rule that still guides its operations today: the "3 pillars" that support the business. Due to a nearly 50% reduction in staff, one of the pillars became the no layoff policy. The other two pillars focus on budgeting and decentralization.

Caterpillar's leading position in the world of diesel engines allowed them to merge with Perkins Engines and Mak Haforen.

In 1998, the company produced the world's largest truck, the 797, setting a milestone as a leading supplier of diesel engines by 2003.

For over a century, Caterpillar has progressed by introducing positive changes to its inventions, which have been operational across all continents, showcasing its leadership for over 80 years.

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