"European-funded projects are the main reason for the growth of the construction machinery market in 2023, by about 50% compared to 2022, reaching around 4,000 new machines,. A significant increase is also due to the acceleration of infrastructure projects funded mainly by the PNRR. The largest share came from the sale of new JCB machines, but also from the business we have with other brands distributed by Terra, such as Sennebogen, Rubble Master and Dynapac, which had a significant increase compared to the previous year, making 2023 the best year in the company's history on the Romanian market. Such growth required very good planning of stocks, ordering and resources, both human and financial", says Victor Vasluian, CEO of Terra Romania Utilaje de Constructions, which in 2023 has gained market share in all categories of equipment it sells.
"Especially the volume ones, backhoe loaders and mini/mid excavators, which represent about 50% of the total new machinery market. With more than 40% market share in backhoe loaders, we are number 1 in Romania in this equipment category."
Even though it reached a record level in 2023, the market for new construction machines is at a normal level considering the size and the development of the country. Other smaller countries in the region with more developed infrastructure have a market size close to Romania's, explains the company's CEO. "We operate in a market with a hard-to-predict evolution, and we rely on the real need for infrastructure development in Romania, which requires the use of new, high-performance machines. However, we estimate that, in the absence of European funding for the purchase of construction machinery, the market will decline in 2024. By how much is difficult to estimate, probably by 20-30%."
With a team of 115 employees, 10% more than the previous year, Terra Utilaje Romania continues its development plans. At the end of 2023, the company opened a new work point in Iasi, as the Moldavia area absorbs a lot of equipment, in 2024 the focus will be on developing the branches in Brasov and Timisoara, which involves building of new, modern, and equipped high standards buildings. "We are in the final stage of the project and approval phase, we expect to start the construction work this spring. The next step will be the development of the Turda branch, also important in our development strategy. The total investment amounts around €6 million for the next 12 months," concludes Victor Vasluian.
Terra Romania Utilaje de Construcții was established in 2001 as part of the Austrian group TERRA Holding, one of the largest distributors of construction machinery in Europe. The main objective of the company is to provide the highest standards of sales and service for construction machinery and industrial applications. The company's product range includes 7 brands with more than 300 equipment models. TERRA is part of a strong corporate group. Its parent company - INDUSTRIE HOLDING GmbH - is an Austrian family business based in Vienna, founded in 2000.
