Case Study Of Ritchie Bros In Romania

Customers:

The main customers of Ritchie Bros in Romania will be the companies which work in the industrial and agricultural sectors but also on petroleum, gas or textile. Because of the recent global crisis, the country has known financial problems during the previous years. Even in nowadays, the financial situation of the country is better, Romanian companies have suffered from the crisis and are therefore more likely to buy second hand products instead of new products.

Industry and agriculture are the main economic sectors in Romania so we decided to focused our research on those two sectors.

Industrial sector:

As we saw in the previous part (presentation of Romania), the industrial sector, and more specifically the construction
In year 2008, 3,300 products were sold on the Romanian market, in 2009 because of the economic crisis, the sales decreases at 780 units sold. In 2010, volumes continued to decline reaching approximately 675 units sold.
In 2011, there was a significant recovery in sales thanks to large projects such as commercial centres or sport centres then, 1,200 units were sold.
72% of the units sold were primary units: excavators, loaders, compact equipment, backhoe loaders … Secondary units represented about 28% of the market.

Second-hand equipment has a very important place on the market. New equipment has increased thanks to companies’ higher budgets but there is still approximately 60% of equipment purchases via leasing.

Construction equipment competitors:

PROMEX is the only local producer in Romania which produce primary equipment (excavators, compactors …) and UMT is the only one to produce secondary equipment (auto/mobile cranes, forklift trucks …). All the other competitors are
The Romanian market of agricultural equipment has known a growing trend during the last years mainly based on imports. Indeed, Romania imports its agricultural equipment from Germany, Italy, Austria, France, Hungary, Bulgaria, Turkey, China …

According to FRD center, the most imported equipment are trailed atomisers, lift mounted atomisers, trailed sprayers, lift mounted sprayers and hand sprayers. They are mainly used for vineyards and orchards.

Agricultural equipment competitors:

MECANICA CEAHLAU: One of the market leaders in Romania. It sells rigid harrows, disc harrows, irrigation machinery, harvesting machinery, machinery for fertilizing, cultivators, and tillers. The company also offers leasing services

IRUM: It is the only producer of agricultural equipment in Romania. Before 2010, it was mainly a producer of forestry equipment. It produces skidders, agricultural tractors, funiculars, pulleys and spare