Bergerat Monnoyeur, Cat® dealer for over 90 years and part of the Monnoyeur Group, organized at Marmorosch Bucharest, the press conference “Results, Achievements, and Challenges in the Construction Equipment Market” to present both the company’s results in recent years and the contribution that Bergerat Monnoyeur brings alongside the ecosystem of the construction industry and European financing towards the maturation of the specific segment.
In a construction and construction equipment market with significant growth, Bergerat Monnoyeur announces the surpassing of the 150 million euros mark by the end of the year, positioning the company among the top 500 largest companies in Romania.
“With fluctuating developments in components, the volume of construction works records a total growth of about 14% during the first 9 months of this year, consolidating the role of a strategic sector in the economic growth. Even though residential construction contracts by 6% due to declining demand caused by interest rate increases, 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 by PNRR. I believe that non-residential construction, especially in logistics parks, whose total area has tripled in the last seven years, will have an interesting growth potential in the medium term,” said Iancu Guda, financial analyst.
The year 2023 represents a record year in the evolution of the construction equipment market in Romania and will record approximately 3800 units sold. The momentum was due to the extension of the financing program carried out in the period 2014-2020, as well as major infrastructure projects, such as highways. Backhoe represent 27% of the total construction equipment, and Cat’s market share in this category is 33% (1 in 3).
“The market is heading towards maturity, and this is evident through the increase in the number of specialized equipment, such as excavators – ranging in size from 1.5t to 90t. In 2023, excavators will represent 36% of the total equipment sold, and one in four excavators is Cat,” said Liviu Neagu, general manager of Bergerat Monnoyeur.
Market structuring involves all players in the industry, as well as the political and social environment. The development of the entire ecosystem requires active participation, thus achieving better market predictability – which is more challenging to determine from a single direction.
One of the good pieces of news is that the absorption rate of European funds has increased over time, from 79% for the 2007-2013 program to 83.04% for the 2014-2020 program, thanks to the time extensions granted from year to year. This indicates a direct correlation between European funding and market developments but does not guarantee predictability for the years to come if this absorption trend is not maintained.
“Bergerat Monnoyeur, as a Caterpillar dealer, takes on the role of participating in building a mature market, implementing key measures to support its partners and clients through consultancy for obtaining European funds, grace periods for loyal customers, customized financing programs through Cat Finance, or warranty extensions. The group will be particularly involved in reducing the carbon footprint by 3% through a well-planned series of measures, such as the use of 98% recyclable materials in the manufacture of new equipment by manufacturers, innovative technologies that will reduce fuel consumption by about 25%, and optimizing technology usage by reducing idle time by 10% and carbon footprint by 7% through efficient equipment operation. Each division of the Monnoyeur group has a well-established innovation schedule to meet the environmental impact reduction plan,” stated Liviu Neagu, CEO of Bergerat Monnoyeur Romania.
The conference analyzed the impact of anticipated fiscal measures and the challenges faced by companies that could benefit from funding through PNRR. In terms of recommendations and challenges in the beneficiary-consultant-authorities relationship, Dan Bold, REI consultant, succinctly highlighted some essential and impactful aspects such as difficulties in managing and meeting deadlines in funding programs, as well as communication and preparation at various levels. Bold provided a series of recommendations, including the reaffirmation of co-financing sources, conducting appropriate market studies to timely demonstrate one’s contribution, and accelerating implementation processes.
One of the main focuses on the training side supported by Bergerat Monnoyeur is the Operator School, through Operator Specialization and Enhancement Programs, conducted on the client’s site with the client’s equipment for increased efficiency, as well as Earthmoving Machine Courses, an accredited course by the Ministry of Labor and the Ministry of Education, which involves 100 hours, with 65 hours of practical training.
Bergerat Monnoyeur Romania is part of Monnoyeur, a group with approximately 1,000 employees in Romania (Bergerat Monnoyeur, IPSO, SITECH), which always aligns its business strategy around services and customer satisfaction.