Record on the Construction Machinery Market in Romania
Bergerat Monnoyeur to Exceed EUR 150mn in Turnover
In a building and construction machinery market with significant growth, Bergerat Monnoyeur – Cat® dealer for over 90 years and part of the Monnoyeur Group, expects to exceed EUR 150 million in business by the end of the year, which places the company in the top 500 largest companies in Romania.
“With oscillating developments on components, the volume of construction works recorded a total growth of about 14% during the first 9 months of this year, strengthening the role of a strategic sector in the economic growth. Even if the residential construction component is shrinking by 6% due to lower demand caused by higher interest rates, the growth of the engineering construction sector by 34% this year is unprecedented in recent decades and is strongly supported by investments made from European funds or the NRRP. I think that non-residential construction will also have an interesting growth potential in the medium term, especially in the logistics parks component, whose total surface has tripled in the last seven years,” says Iancu Guda, financial analyst.
2023 represents a record year in the evolution of the construction machinery market in Romania and will see about 3800 machineries sold. The impetus was due to the extension of the funding programme run in 2014-2020, as well as large infrastructure projects, such as the motorway part. Backhoe loaders account for 27% of all construction machinery, and Cat’s market share in this category is 33% (1 in 3).
“The market is moving towards maturity, and this can be seen in the increasing number of specialised machines, such as excavators – ranging in size from 1.5t to 90t. In 2023 excavators will represent 36% of all machinery sold and one in four excavators is Cat,” says Liviu Neagu, CEO Bergerat Monnoyeur Romania & Republic of Moldova.
The market structure depends on all the players in the industry, as well as the political and social environment. A development of the whole ecosystem requires active participation for better market predictability – which is harder to determine from one direction.
One of the good news is that the absorption rate of European funds has increased over time from 79% for the 2007-2013 programme to 83.04% for the 2014-2020 programme, thanks to the time extensions granted from year to year. This shows a direct correlation between European funding and market developments but does not ensure predictability for the years to come – if this absorption trend is not maintained.
“Bergerat Monnoyeur, as a Caterpillar dealer, assumes the role of participating in building a mature market, taking some key measures to support its partners and customers by advising them on obtaining European funds, with grace periods for loyal customers, customized financing programmes through Cat Finance or warranty extension. The Group will be particularly committed to reducing its carbon footprint by 3% through a series of well-planned measures, such as the use of 98% recyclable materials used by manufacturers in the construction of new equipment, innovative technologies that will reduce fuel consumption by around 25% and optimising the use of technology by reducing idle time by 10% and carbon footprint by 7% through efficient machinery operation. Each division in the Monnoyeur group has a well-established timetable on the innovation side in order to fulfil the plan to reduce the environmental impact,” Liviu Neagu mentions.
On the side of recommendations and challenges in the beneficiary-consultant-authorities relationship, Dan Bold, Business Development Manager REI Grup, pointed out some essential issues such as difficulties in managing and meeting certain deadlines in funding programmes, but also difficulties in their communication and preparation. He also referred to reconfirming co-financing sources, carrying out appropriate market studies to be able to prove own contribution in a timely manner and speed up implementation processes.
Two out of three construction machinery sold in Romania were purchased with the support of non-reimbursable funds, a market that will reach a sales record this year, with more than 3,800 units expected to be sold, according to Bergerat Monnoyeur Romania. Without the support of non-reimbursable funds, the market would have been below 1,000 units sold and the dynamic of the construction sector would have been much reduced.
Bergerat Monnoyeur Romania is part of Monnoyeur, a group with about 1,000 employees in Romania (Bergerat Monnoyeur, IPSO, SITECH), which always orients its business strategy around services and customer satisfaction.
