The Baldwin Locomotive Works was founded by Matthias W. Baldwin. Mr. Baldwin designed and constructed for his own use a small stationary engine and thus turned his attention to the steam engineering trade. In 1832 his first locomotive was built. Due to financial hardship, Baldwin was forced to take on many partnerships between 1839 and 1846, and the firm's name changed repeatedly as a result. It was known as Baldwin, Vail & Hufty (1839-1842); Baldwin & Whitney (1842-1845); M. W. Baldwin (1846-1853); and M. W. Baldwin & Co. (1854-1866). After Baldwin's death in 1866 the firm was known as M. Baird & Co. (1867-1873); Burnham, Parry, Williams & Co. (1873-1890); Burnham, Williams & Co. (1891-1909); it was finally incorporated as the Baldwin Locomotive Works in 1909.

However in the 1920's there was decline in the railroad business and in 1935 it was declared bankrupt. The Westinghouse Corporation bought Baldwin in 1948 but was unable to turn the company around. In 1950 the Lima-Hamilton Corporation and Baldwin merged but in 1956 the last of some 70,541 locomotives was produced.