Caterpillar said on Tuesday that Chief Operating Officer Joe Creed would succeed Jim Umpleby as CEO, tapping an insider to help the construction equipment maker navigate the fallout of President Donald Trump’s sweeping tariffs.
Umpleby, a veteran who has been with the company for more than four decades, held the top job for the last eight years and guided the firm through a demand and supply chain downturn brought on by the COVID-19 pandemic.
Umpleby, who will transition to executive chairman, will hand over the reins on May 1 to 49-year-old Joseph Creed, a 28-year veteran with extensive leadership experience at Caterpillar.
“While Creed will be stepping into the role at a challenging part in the cycle and amid a dynamic macro backdrop, we believe the well-telegraphed internal succession, and Umpleby’s transition to executive chairman likely limits the impact on shares,” Kristen Owen, senior analyst at Oppenheimer, wrote in a note.
Caterpillar’s shares were up 1% in morning trade. They have lost nearly 18% of their value this year.
“Historically, this means there will be consistency and continuity rather than any big changes in strategy or tactics,” Jefferies analyst Stephen Volkmann said.
“I would not expect any meaningful changes at the company for at least a year or two, if at all.”
Caterpillar had reaped the benefits of former President Joe Biden’s 2021 infrastructure law – a $1 trillion enactment aimed at upgrading roads, bridges and other transport infrastructure.
However, the initial demand surge waned as due to high borrowing costs and persistent inflation.
Several contractors are also adopting a wait-and-see approach to buying new machinery against the backdrop of mounting uncertainty over government spending under the Trump administration.
The company, set to report first-quarter results later this month, has forecast a slight decline in sales for 2025.