A major manufacturer is expanding its South Texas workforce, even as geopolitical uncertainty has slowed growth in the sector.

Caterpillar, a leading manufacturer of construction equipment, last week announced it will add 200 positions at its Victoria facility, which manufactures hydraulic excavators. The company currently has about 600 employees at the Victoria facility, it said in an email to the Houston Chronicle, including workers in procurement, engineering and support roles, as well as assemblers, welders and painters.

Karan Sood, manager for the Victoria facility, said Caterpillar is seeing continued consumer demand for hydraulic excavators, which he described as "one of the most versatile and essential machines on today’s job sites."

"Our Victoria facility plays a critical role in Caterpillar’s North American manufacturing footprint, producing excavators that incorporate advanced technologies, including digital connectivity, automation-ready features and operator-assist systems," Sood said in an email.

Many of those roles will be open to applicants without experience, he said, and they will receive "comprehensive on-the-job training."

"Many production roles at our Victoria facility are entry-level, reflecting Caterpillar’s strong commitment to building and investing in its workforce," Sood said.

Caterpillar, which began as a tractor manufacturer in 1925, has been growing its presence in Texas. It opened the Victoria facility in 2012, and in 2022 moved its corporate headquarters from Illinois to Irving, in the Dallas-Fort Worth area.

Its latest announcement comes as activity in the state's manufacturing sector is slowing, according to a regular report from the Federal Reserve Bank of Dallas, with many executives citing geopolitical uncertainty as a concern. The Dallas Fed's monthly manufacturing sector outlook, released March 30, found that 15% of executives surveyed reported net hiring last month, while 16% reported net layoffs: a wash.

"We have been stupid slow recently, slower than we can recall in many years," said one of the executives surveyed, in response to special questions asked this month. "We continue to believe it’s from the chaos and confusion coming out of Washington."

By: DocMemory
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