In a market for building and construction machinery with significant growth, Bergerat Monnoyeur, Cat® distributor for more than 90 years and part of the Monnoyeur Group, expects to exceed 150 million euros of business by the end of of year, which places the company in first place. 500 largest companies in Romania.
“With oscillating evolution in components, the volume of construction works registered a total growth of approximately 14% during the first 9 months of this year, reinforcing the role of a strategic sector in economic growth. While the residential construction component is down 6% due to lower demand driven by rising interest rates, the engineering construction sector’s growth of 34% this year is unprecedented in recent decades and is strongly supported by investments made with European funds or the NRRP. I believe that non-residential construction will also have interesting growth potential in the medium term, especially in the component of logistics parks, whose total area 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 around 3,800 machines will be sold. The boost was due to the expansion of the financing program executed in 2014-2020, as well as large infrastructure projects, such as the highway section. Backhoe loaders represent 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 specialized machines, such as excavators, ranging from 1.5 to 90 t. In 2023, excavators will represent 36% of all machinery sold and one in four excavators is a Cat,” says Liviu Neagu, CEO of Bergerat Monnoyeur Romania and Republic of Moldova.
The structure of the market depends on all the players in the industry, as well as on the political and social environment. The development of the entire ecosystem requires active participation for better market predictability, which is more difficult to determine from one direction.
One of the good news is that the absorption rate of European funds has increased over time from 79% of the 2007-2013 program to 83.04% of the 2014-2020 program, thanks to the time extensions they award year after year. This shows a direct correlation between European funding and the evolution of the market, but does not guarantee predictability for the coming years, if this absorption trend is not maintained.
“Bergerat Monnoyeur, as a Caterpillar distributor, assumes the role of participating in the construction of a mature market, adopting some key measures to support its partners and customers by advising them on obtaining European funds, with grace periods for loyal customers, customized financing programs through Cat. Financing or warranty extension. The Group will make a special effort to reduce 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 consumption of fuel by around 25% and optimizing the use of technology by reducing downtime by 10% and the carbon footprint by 7% through efficient machinery operation. Each division of the Monnoyeur group has a well-established calendar in terms of innovation in order to fulfill the environmental impact reduction plan”, mentions Liviu Neagu.
Regarding the recommendations and challenges in the beneficiary-consultant-authority relationship, Dan Bold, Director of Business Development REI Grup, pointed out some essential issues such as the difficulties in managing and meeting certain deadlines in funding programs, but also the difficulties in their communication and preparation. He also referred to reconfirming the sources of co-financing, to carrying out the appropriate market studies to be able to accredit the own contribution in a timely manner and speed up the implementation processes.
Two out of three construction machinery sold in Romania have been bought with the support of non-reimbursable funds, a market that will reach a record sales this year, with more than 3,800 units expected, according to Bergerat Monnoyeur Romania. Without the support of non-reimbursable funds, the market would have been below 1,000 units sold and the dynamics of the construction sector would have been greatly reduced.
Bergerat Monnoyeur Romania is part of Monnoyeur, a group with around 1,000 employees in Romania (Bergerat Monnoyeur, IPSO, SITECH), which always orients its business strategy around services and customer satisfaction.
