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In 1869 the company expanded into steam power and soon after followed the first Allis steam engine. The company line-up grew to include steam pumps including the largest centrifugal pump in America in 1884 and the first triple expansion pumping engine two years later.

In 1901, the "Allis Chalmers" company was formed by merging the Edward P. Allis Co., Fraser and Chalmers Company and Gates Iron Works. Shortly after, a large chunk of land was purchased in what became West Allis, Wisconsin. Wanting to diversify, Allis Chalmers built its first farm tractor in 1914. The tractor business grew, and in 1928 a line of crawler tractors was started. The acquistion of several additional companies in the upcoming years, such as the LaCrosse Plow Company and Advance-Rumely added an extensive line of tillage implements, threshers and combines to the line-up.

When Allis Chalmers decided to focus on the small and medium sized farmer, they came up with new designs that turned out to be one of the most popular series of tractors ever produced. The WC tractor was first built in 1933 as a prototype tractor. Soon to follow was the Model B tractor which was very popular. Next in line was the Model C tractor which ame on the market in 1940. Followed by the Allis Chalmers CA tractor in 1950, the WD tractor in 1948 and the Allis Chalmers WD45 tractor in 1953.

Allis Chalmers continued to modernize their tractors throughout their history.

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