Caterpillar has updated its strategy to include Sustainability as a strategic area, reflecting a commitment to environmental, social, and governance goals, along with developing innovative products and services.

The company's order backlog decreased to $27.5 billion at the end of 2023, down from $30.4 billion at the end of 2022, indicating a potential shift in future demand.

Caterpillar maintains global strategic sourcing models to ensure timely delivery of raw materials and components, while also building long-term supplier relationships and leveraging enterprise spend.

Caterpillar's recordable injury frequency rate improved to 0.40 in 2023, compared to 0.44 in 2022, reflecting a focus on employee health and safety.

Caterpillar is committed to employee development and helping individuals reach their full potential through various programs, indicating a focus on building a high-performing global team.

The company aligns employment levels with the needs of the business, employing approximately 113,200 full-time persons as of December 31, 2023, with a significant portion located outside the United States.

Caterpillar's results of operations are materially affected by economic conditions, with demand for products tending to be cyclical and significantly reduced in periods of economic weakness.

The company acknowledges the potential for catastrophic events, including global pandemics, to materially affect business operations, results, and financial condition.

Caterpillar faces risks from commodity price changes, material price increases, and disruptions to the supply chain, which may negatively impact financial results or the ability to meet commitments to customers.

The company's products and services are sold worldwide into a variety of highly competitive markets, with competition based on product performance, customer service, quality, and price.

The intensity of competition can result in price discounting, which puts pressure on margins and can negatively impact operating profit.

Outside the United States, certain competitors enjoy competitive advantages inherent to operating in their home countries or regions.

Caterpillar maintains global strategic sourcing models to meet global facilities' production needs while building long-term supplier relationships and leveraging enterprise spend.

In some cases, increases in demand or supply chain disruptions have led to parts and components constraints across some products.

Caterpillar uses a variety of agreements with suppliers to protect intellectual property and processes to monitor and mitigate risks of the supply base causing a business disruption.

Caterpillar's research and development efforts remain focused on providing customers the lowest total cost of ownership enabled through the highest quality, most productive products and services in the industry.

Caterpillar develops and sells technology products and services to provide customers fleet management systems, equipment management analytics and autonomous machine capabilities.

Caterpillar's success in selling products that appeal to customers is dependent on leading-edge innovation, with respect to both products and operations, and on the availability and effectiveness of legal protection for innovations.

Caterpillar's top priority is to maintain a strong financial position in support of a mid-A rating, with a focus on liquidity, leverage, cash flow, and margins.

Caterpillar intends to fund priorities that profitably grow the company and return capital to shareholders through dividend growth and share repurchases.

The company repurchased $4.98 billion of Caterpillar common stock in 2023, with $7.8 billion remaining available under the 2022 Authorization as of December 31, 2023.

Caterpillar's longstanding commitment to sustainability has inspired the company to set and achieve meaningful environmental, social and governance goals.

Caterpillar is committed to fostering a diverse workforce and an inclusive environment, with strategic approaches that weave diversity and inclusion seamlessly into the business.

Caterpillar is engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws, and accrues costs when it is probable they will pay remedial costs.

Overall demand remains healthy across most of Caterpillar's end markets for its products and services.

Non-residential construction in North America is expected to remain at similar demand levels as 2023 due to government-related infrastructure investments.

The company anticipates China will remain at a relatively low level in the excavator industry above 10-tons.