A market of growing opportunities
The region of Latin America includes the countries of America which speak Spanish and Portuguese–in the literal sense "Latin" as the basis of all the Romance languages–as well as those countries in the Caribbean in which French is spoken. The designation "Latin America" is used to differentiate these countries from the countries in America (USA and Canada) which speak English. The region of Latin America has grown significantly in importance in recent years for a variety of reasons. Faster economic growth, reforms that have been implemented in some countries and are now beginning to take hold, as well as lower inflation are noteworthy factors. Although the Latin American economy is recovering slowly from a weak 2016, it is now a matter of managing greater challenges in individual market.
Brazil, one of the region's largest and most important markets, is experiencing a slow recovery of the internal consumption. Argentina is also developing slightly faster than expected with promising perspectives for the coming years. At the same time, many of the countries in the region are facing challenges, for example Peru, Chile and Colombia.
(Wacker Neuson's headquarters in Latin America)
|Official languages:||Spanish; recognized dialects: Quechua and Aimara|
|Head of state:||State President Pedro Pablo Kuczynski|
|Head of Government:||Prime Minister Fernando Zavala|
|Surface area:||1,285,216 sqm²|
|Population:||30,741,062 (July 2016)|
Diverse local requirements
Wacker Neuson has been operating in this demanding environment for more than four decades. "It is important to realize that the region of Latin America comprises 34 countries with 11 overseas territories", explains Hugo Arce, Regional President Latin America at Wacker Neuson. "These markets are extremely diverse and we must adapt our strategy to local requirements. “In addition to different languages, there are, for example, statutory regulations, taxation requirements, the commercial and political situation or the relevant market potential." Wacker Neuson has its regional headquarters in Lima, Peru. All central functions are concentrated at this site.
Latin America offers immense potential for growth. "If you only take a look at some indicators such as GDP, the deposits of raw materials, especially metals, gas and oil, or progressive industrialization" adds Hugo Arce. This is how, in recent years, a new generation with increased earning power has arisen, demanding a better quality of life, new goods, services or living accommodation. At the same time, there is a seriously obsolescent infrastructure: Harbors, airports, roads, hydro-electric power plants, telecommunications, housing – all these must be modernized or newly built, for the region's competitive edge depends on this for the future. "We must make good use of these opportunities", says Hugo Arce.
"These markets are extremely diverse and we must adapt our strategy to local requirements."
Hugo Arce, Regional President Latin America
In Latin America, Wacker Neuson is offering a range of construction equipment from its "M-series" that specifically fits the local market needs. This product line is of robust design, complies with Wacker Neuson' high quality criteria and can–due to less complex fittings and a reduced selection of alternatives–compete with a very good price-performance ratio.
“For the region, the areas of concrete compaction, soil compaction and earth moving are also important” reports Hugo Arce. "We are known everywhere for our rammers. In the recent years, the compact excavators, wheel loaders and dumpers have become more important as well and are being used in many different industries. In addition, we are constantly entering niche markets, for example in agriculture, farming or mining." Particularly in the field of concrete technology, there are many examples of successfully completed projects for example , more than 500 internal vibrators from Wacker Neuson were used to expand the Panama canal.
In order to continue developing Wacker Neuson in the region, the expansion of the dealer network is one important aspect. The objective is to boost Wacker Neuson's brand name in Latin America and win additional market shares. "Wacker Neuson stands for reliability and German engineering", says Hugo Arce. "We benefit from this in the co-operation with our dealer partners and we are known for this by our customers."