Our strategy for long-term profitable growth remains unchanged. Since 2017, we have consistently executed our strategy while creating value for our customers and shareholders. Our talented global team’s unwavering commitment to executing our strategy helped make 2023 the best year in Caterpillar’s 98-year history.
Services include everything we do to help our customers succeed after they buy our equipment. We continue executing our services growth strategy, striving to reach $28 billion in services sales1 by 2026. These services take many forms, and all focus on enhancing the customer experience by joining equipment and digital capabilities to optimize their operations.
By combining data and insights from more than 1.5 million connected assets with our engineering knowledge, artificial intelligence and advanced analytics, we create intelligent leads we call prioritized service events (PSEs). PSEs allow us to better serve our customers by helping customers and dealers schedule regular equipment maintenance to avoid unplanned downtime. Most recently, we have been able to use our Cat® Track Wear Sensor technology to generate PSEs. When a Cat Track Wear Sensor is embedded in a machine’s undercarriage, dealers receive PSEs as wear increases. Dealers can then proactively contact customers about repairing or replacing their undercarriage to avoid costly job interruptions.
In the eCommerce space, we are enhancing our digital products to make aftermarket parts easy to find and buy. Over the past year, we have added more than 100,000 new customers to our online channel. In 2022, we set a three-year goal to grow dealer parts sales through eCommerce by 50% from a baseline of $10 million per day. We are now exceeding that goal.
We are making meaningful progress in becoming even easier to do business with and meeting the needs of smaller customers. The Cat Central app provides a single source for 24/7 support, parts orders, service scheduling and more on mobile devices. Customers can identify needed parts by simply scanning a QR code.
Growing demand for technician expertise: Cat dealer technicians offer essential frontline support to keep machines and engines up and running through preventative maintenance and repair options. Caterpillar offers tools, training and resources to prepare new and experienced technicians for valued roles in the Cat dealer network.
We enable customer success by understanding their needs and delivering integrated, differentiated solutions. For example:
We help our customers build a better, more sustainable world.
We detail this commitment in our 2023 Sustainability Report, which provides an in-depth look at progress over the past year and how we help our customers achieve their climate-related goals.
More information about how we are managing climate opportunities and risks can be found in our 2023 Task Force on Climate-related Financial Disclosures (TCFD) Report.
Our 2023 Lobbying Report details how and why Caterpillar participates in public policy to help advocate for issues that advance our enterprise strategy.
A diverse and inclusive workforce is a source of innovation and competitive advantage at Caterpillar. Read our 2023 Diversity & Inclusion Report to learn about our continuing D&I journey.
Since creating the Caterpillar Foundation in 1952, Caterpillar has contributed more than $935 million to organizations to help build resilient communities worldwide.
We introduced the Cat Compact Energy Storage System (ESS), a mobile battery energy storage system that supplements traditional mobile power solutions to reduce noise and enable the deployment of renewable energy sources.
Caterpillar and Albemarle introduced a unique collaboration aimed to support their efforts to establish Kings Mountain, North Carolina, as the first-ever zero-emissions lithium mine in North America while also making lithium available for use in Caterpillar battery production.
Caterpillar has a long history of supporting customers through energy transitions. We are investing to deliver best-in-class innovation – including autonomy, alternative fuels, connectivity and digital, and electrification (AACE) technologies – and are committed to supporting our customers on their sustainability journeys.
Building Infrastructure
Our construction equipment helps build the infrastructure needed for the energy transition. Improving fuel efficiency and productivity of machines helps customers reduce greenhouse gas emissions.
Supporting the Mine Sites of the Future
Our mining equipment supports the increased demand for critical materials required for evolving energy technologies. These include copper, lithium, nickel and aluminum for electric vehicles, battery storage, wind and solar power, and grid modernization and stability.
Optimizing Natural Gas
Our reciprocating engines and gas turbines are widely used across the globe in upstream natural gas production and transmission. Natural gas is playing an important role in the energy transition.
Increasing Alternative Fuel Capabilities
We offer machines and engines that are capable of operating on alternative fuels, such as biodiesel, biogas, hydrogen, HVO and methanol while continuing to develop technologies for the future.
Enhancing Energy Reliability
Customers utilize our reciprocating engine and gas turbine generator sets to support grid stability as renewable energy is increasingly added to the grid.
At Caterpillar, the most important thing we do is ensure employees go home safely every day. Through continuous improvement efforts over the past two decades, we have established an industry-leading safety culture. Today, we are working toward a 2030 goal to deliver a 50% reduction in recordable injury frequency from our 2018 performance. To reach this level, in 2023, we initiated a refresh of our safety strategy aligned to Human and Organizational Performance principles and are implementing this work in 2024 and beyond.
We continue to modernize our global parts distribution network through Lean principles, automation and robotics. This agile and autonomous ecosystem – now in operation at seven facilities worldwide – enhances safety, improves quality and increases efficiency, ensuring our network operates effectively at the lowest cost.
We also recognize the critical role suppliers play throughout our value chain. That is why we are focused on strengthening supplier relationships, improving processes and adopting new technologies to ensure our customers have the right parts and equipment at the right time and place.
Building on our core competencies – safety, quality, Lean and a competitive and flexible cost structure – we are positioned to deliver strong operational performance.
In 1973, Caterpillar was the first manufacturer in the United States to operate its own diesel truck engine remanufacturing plant and released the first direct injection truck engine. Before that, an aging diesel truck engine in the United States was usually replaced with a new one after it passed the 120,000-mile mark.
In 2023, Cat Reman took back approximately 147 million pounds of material2. We work across our three primary segments to provide customers with lower costs and quick turnarounds – all while delivering sustainability benefits.
1ME&T Services Revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products’ revenues, discontinued products and captive dealer services.
2Data does not include Progress Rail, Solar Turbines, Caterpillar Energy Solutions, and Caterpillar Defense.
