SIOUX CITY | The Ziegler Cat business has completed an expansion that added 24,000 square feet and will bring more jobs to the facility in the Bridgeport Industrial Park.
The roughly $6 million expansion at the Caterpillar equipment dealership on the city's south side began in 2012. The new portion was built on by November, then some remodeling of the original building wrapped in January. The changes boost the facility to a square footage of 54,000.
Ziegler Chairman and CEO William Hoeft said the project enables Ziegler Cat to better serve western Iowa customers and improve offerings of new and used equipment, service, parts, rental tools and technology support for customers.
"We're expanding our presence in Sioux City because our business in the area continues to grow," Hoeft said. "The expansion will help us provide a higher level of service to both our construction and agricultural customers."
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The Sioux City dealership on Harbor Drive increased the size of its shop by 19,000 square feet and the warehouse by 5,000 square feet. The project also includes a larger parking and equipment display areas.
Now that the expansion is done, manager Jim Eskens said, Ziegler is positioned well.
"This expansion will allow us to keep up with the growth we have been experiencing these past few years and for future growth in the territory we serve," Eskens said. "The addition to our parts warehouse will help increase our parts inventory for our customers. Ziegler strives to satisfy customers and bring value to the product we supply, and this expansion is an example of this commitment to our customers."
The city of Sioux City assisted the expansion by vacating and turning over to the company 2 acres of unused right-of-way that lay between Ziegler's facility in the Bridgeport Industrial Park and an equipment display area it owns along Interstate 29. That created a single parcel large enough for the expansion.
The city also improved infrastructure to better drain the Ziegler property and other properties in the area.
In exchange for the assistance, Ziegler has agreed to a minimum property assessment of $2.5 million. The company, which currently employs 40 people, plans to add 10 to 20 new jobs.
Mayor Bob Scott praised Ziegler's expansion when the company first announced the expansion in 2012.
The dealer sells and services the full line of Caterpillar construction equipment, including compact, mid-size, and heavy equipment. They also offer new and used agricultural equipment, including tractors, combines and planters.
Founded in 1914, Ziegler is one of the largest Caterpillar dealers in the country. The family-owned business employs more than 1,400 people at 27 locations in Minnesota, Iowa, Wisconsin, and Missouri.
Ziegler moved into Sioux City with the purchase of the Gibbs-Cook Co. in 1987, changing the name to Ziegler Cat in 1989. The business moved from a nearby Harbor Drive location to 53000 Harbor Drive in 1994.
With its Sioux City expansion complete, Ziegler Cat expects to open its newest full-service facility in Sheldon, Iowa, by May.
The Sheldon building is approximately 26,400 square feet on 21 acres. It is the first use of the city's new Crossroads Industrial Park, southeast of U.S. Highway 18 and Iowa Highway 60.
The site was selected after an analysis of Ziegler's current and potential customer base was compared to its existing locations, Hoeft said.
Ziegler expects 18 to 25 employees to work in the Sheldon location.
