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They don't need caterpillar tracks in order to function - there are wheel loaders. The purpose of the caterpillar tracks is mobility... excavators are quite heavy, and, as they're often operating on unimproved surfaces (e.g., bare earth), that surface can be very readily prone to sinking under the weight of the vehicle. Caterpillar tracks distribute the weight over a much more broad area than tires (look at the length of a track where it makes contact with the ground.. the weight's distributed over that.. now look at a vehicle with wheels and compare how much surface is in contact with the ground), creating a much lower overall ground pressure.

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