HITACHI CONSTRUCTION MACHINERY

SCAI was established more than 50 years ago, near Perugia, deep in the heart of central Italy, where
we uncovered a strong heritage in the national distributor of Hitachi Construction Machinery. Its roots are embedded within the local Cesaretti family and scenic Umbria region, with a business strategy focused on an expanding customer base.

The SCAI family tree may be traced back to the end of World War II and the formation of Fratelli Cesaretti (Cesaretti Brothers). The enterprising concern seized the opportunity of repairing and converting surplus military vehicles into agricultural machinery.

By the end of the Fifties, the company had developed operations with the manufacture of Orsi (its own brand) crawler loaders. The business was further diversified in the Seventies when it formed a second company – SCAI (Società Commerciale Agricola Industriale).

During this period, SCAI went on to represent some of the leading brands in the construction industry, but its first link to the Hitachi brand can be traced back to its partnership with the Fiat Group in the Eighties and Nineties. Initially this was with the Fiat-Allis franchise for Umbria, Tuscany and Lazio, and later with Fiat-Hitachi in these regions and Sardinia.

Eventually SCAI joined forces with Hitachi Construction Machinery (Europe) NV (HCME) in 2003 after the split with Fiat. This was a significant development, with its sales territories expanding throughout all of Italy and then into other neighbouring countries.

“We decided to form a partnership with Hitachi, because we were sure that their products would be the best,” says the SCAI President, Ernesto Cesaretti. “There was some doubt about this within the industry, because Fiat is an Italian company. However, the proof is in the success of the Hitachi brand since then and the strong relationship we enjoy with HCME and its management.”

Hitachi took a bold step in 2003 when it made a 49 per cent investment in SCAI. “This was an important agreement for the Italian market,” continues Mr Cesaretti. “Hitachi had invested a lot of technical knowledge and technology into Fiat-Hitachi and SCAI needed to position itself in this way. It also projected a serious image into the marketplace. SCAI has benefited from the impact of the Hitachi ‘voice’ in board meetings for issues concerning product development and the Italian market.”

SCAI’s headquarters, parts warehouse and central workshop facility are situated in Ospedalicchio on the outskirts of Perugia. It is also close to the famous tourist destination of Assisi, which is famous for Saint Francis, the patron saint of animals, birds and the environment. Perugia airport is a short drive from the office, which is convenient for a company that is spreading its wings across Italy and other parts of Europe.

The Italian domestic market is covered by 250 staff working across nine SCAI branches, which are supported by a network of sub-dealers, around 50 workshops and rental offices. Since the beginning of 2006, SCAI has also held responsibility for Malta, Albania, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Macedonia and Montenegro. Each office has the ability to communicate via an internet portal which is vital for sharing information at all levels.

SCAI is currently run by Ernesto and his brother Mauro (Human Resources and Finance General Manager). The family connection extends to Ernesto’s four children who also work for the company: Elisa (Marketing); Lorenzo (Sales Manager); Emanuela (Purchasing); and Elena (Human Resources). This is symbolic of the SCAI family culture and values.

SCAI’s mission statement is, “To encourage the value of technology, together with human power, creativity and versatility in the business world.” This may be evidenced by the company’s overall aim of shaping its business strategy to focus on the demands of the customer.

SCAI’s advertising strapline also symbolises its marketing approach: “Il genio in movimento” (the genius in motion). Elisa was the brainchild of this statement and enthusiastically explains the theory behind it.

“Italy is renowned for geniuses like Michelangelo,” she enthuses, “but in this case we are referring to the general ability to think in an inquisitive and innovative manner. Good examples include an engineer who is considering the development of a piece of machinery or a SCAI salesman cooperating with a customer.

“When such ideas are conceived, it is due to the passion held by the individual concerned. This is caused by motion or movements of the mind and is like an earth moving machine in construction industry terms… So we have ‘The genius in motion’ and the thought of the customer inspires our engineers and salesmen to push forward and achieve new standards of creativity and excellence in their work.

“For instance, when a customer has a particular request, SCAI will turn to Hitachi first. If the manufacturer isn’t able to find a solution, then we will help to create a custom-made application or attachment thanks to the experience and expertise of our special equipment engineers.”

Ernesto agrees that the emphasis has always been placed on the needs of the customer. “Our history shows how the business has been shaped around the workshop. The first thing that we have always done is to help and satisfy the customer when he has had a problem with a machine. Product support is at the root of SCAI, so our priority is to demonstrate how close we are to the customer.

“A good example is that some customers came to me at the last Samoter exhibition in 2005 and asked for my advice concerning the purchase of a new machine. They even invited me to give my opinion on our competitors’ machines and visit the other stands with them! This shows how much trust and confidence they have in our organisation and in many ways our relationship is similar to that of friends and family.”

Elisa is also the driving force behind some of SCAI’s other marketing initiatives, including: the sponsorship of the Umbria Jazz festival and the Museo di San Pietro in Assisi; a collaboration with the artist Norberto of Assisi, who produced a limited edition print for SCAI in return for use of a mini-excavator to unveil a new sculpture; official shirt sponsor status of Perugia Calcio football club; the distribution of SCAInforma magazine to 5-6,000 customers; and the support of a book and exhibition in Assisi as a celebration for the life and times of the Japanese artist Foujita.

The sub-dealers are important links in the SCAI chain. They handle all sales, service and rental enquiries for their respective territories. “We enjoy very good relations with the sub-dealers,” continues Elisa. “This is an unusual approach, but it was necessary when we were appointed by Hitachi in 2003 due to the state of the Italian market. It was fragmented and so we needed to implement a structure which gave us local market knowledge and expertise.”

The main workshop and product support team are sited at the original Fratelli Cesaretti building. This impressive facility specialises in second-hand refurbishment in addition to routine service work. It is an interesting mix of the old with the new, from the impressive technology at the disposal of the technicians to a small museum displaying some tooling equipment used by the original Cesaretti Brothers in the Fifties.

The other nine branches have similar capabilities, but the network of smaller workshops concentrates on service work. “SCAI places a great emphasis on service, with a national network available to Hitachi customers,” says Elisa. “This is important due to the engineering background of the company and how specialised we have become in this sector. We also host technical training seminars courtesy of our colleagues from HCME and even help our staff with English language classes so that they can communicate with our main supplier in The Netherlands.

“The service network may appear to be excessive, but we have a technician within 20-30km of any Hitachi machine in the country. This is particularly important to our mini-excavator customers. The scope of our operation varies according to where the workshop is located, but you can guarantee a support team of at least four technicians and two support vehicles.”

A new chapter in the SCAI story unfolded in October 2007 when a tenth branch opened in Milan. “This was an important strategic move into the north of Italy,” explains Elisa. “We need to have a direct relationship with customers in the country’s industrial heartland, where there is a lot of construction work on an ongoing basis.”

The Italian market is dominated by the mini-excavator sector. In 2006, 13,133 new models were sold – an increase of 9.3 per cent on the previous year.

“SCAI can offer a full line of Hitachi mini-excavators and these have been accepted by our customer base,” explains Ernesto. “This is very important because Italy is such a big market for minis. We have also enjoyed success with the Zaxis-3 mid-range excavators and ZW series wheel loaders – our customers appreciate the undoubted quality of Hitachi construction machinery.”

The most popular individual models are the ZX210-3, ZX240-3 – an exclusive machine for Italy – and the ZX350-3. However, the overall market is steadily increasing and this has had a positive effect on SCAI’s turnover and overall market share.

The company reported sales of €199,265,615 in 2006, which saw an increase of 12.6 per cent on the previous year. The majority (78.8 per cent) of this related to sales of new machinery, but parts also contributed 7.9 per cent of the turnover.

SCAI’s investment in a new parts centre has certainly contributed to its undoubted success. The palatial 4,000m² warehouse was built on a prestigious 8,000m² site to double its capacity to stock, collect and distribute 1,500 parts in 300 orders on a daily basis. There was an average of 50,000 line items held in stock in 2007 at a value of €6million. These are impressive statistics, with more room for growth as SCAI continues to develop its business.

Ernesto is keen to point out what an important role the people at SCAI have to play in the company’s growth. “I hope that our staff will continue to grow with the company, because this is necessary for the whole business to improve in the future. We are currently second in the Italian construction machinery market, and assuming we climb to the number one spot, then we can move on to the other territories which we have responsibility for.”

Putting operators first

Deep among the rolling Umbrian hills, a ZX210-3, ZX350-3 and ZW220 are working in a quarry managed by Nuova Ge. Cav srl. The machines have been rented by the local construction company from SCAI.

The owner of Nuova Ge. Cav, Vincenzo Imperatori, founded the company five years ago. He has a team of 20 staff, plus other freelance operators. Vincenzo was “converted” to Hitachi by SCAI’s salesman for the region, Francesco Bartolucci. He was offered the opportunity to test a ZX350-3 against another machine and there was only one winner!

“We had never used Hitachi before,” explains Vincenzo, “but we were certainly convinced after the test. Overall, the Zaxis was very productive. It delivered better fuel consumption and handled 100m³ more over a one hour period.”

However, there is a more important factor to consider. “I like to look after my staff, so this must be the first consideration,” he continues. “If they are working for up to 11 hours, then they must be happy with their working environment.”

The quality of life for operator, Claudio Rossi, has improved thanks to the ZX210-3. “After a long day, I am still able to play with my children and do other things when I get home! I’m not as tired as I used to be.

“The ergonomic design of the control panel means that the ZX210-3 is easy to use and manoeuvre. I like the comfortable seat, air conditioning and there’s even a fridge! Above all, when you close the door it sounds like a good quality car.”

The Hitachi fleet is helping to produce materials from the open-cast quarry for use on road and general construction sites. Nuova Ge. Cav chooses to rent, because this offers the flexibility required for a wide range of job sites.

This strategy is also indicative of the strong relationship between Nuova Ge. Cav and SCAI. “Francesco is our main point of contact and we enjoy good relations,” explains Vincenzo. “One phone call is enough for us to receive a fast and efficient service.

“When changing job sites, we may also need to change machines and we have access to the whole Hitachi range. Our maintenance costs have also reduced and so far we have enjoyed 100 per cent reliability.”
Nuova Ge. Cav may be one of SCAI’s newest customers, but there is already a strong relationship in place. This will pay dividends for both parties, with Vincenzo’s conviction that he wants to continue working with SCAI and Hitachi as part of his business strategy.

Improvements are clearly visible

Migiana quarry is working like clockwork. A queue of trucks from cement company, Celcestruzzi Magione, is being loaded by two Hitachi ZW310s. The wheel loaders are part of Impresa Gradassi Mario’s Hitachi fleet working across its three quarries in the Umbria region.

The cement and quarry companies have one thing in common – they are owned by Pietrini Marsilio! He’s at the helm of an organisation which embraces everything from building roads to bridge construction. As one of the most important companies in the area, it is significant that they only use Hitachi machines.

“We have never had any problems with Hitachi,” explains Pietrini. “They are quality machines and offer a reliable solution. We also have an excellent relationship with SCAI after working with Mr Cesaretti and his team for over 35 years.”

The Hitachi fleet – three ZW310s, a ZW220 and a ZX470-3, ZX240-3 and ZX50U-2 – is spread across the firm’s quarry and road construction sites. The most important factor for Impresa Gradassi Mario is the level of service provided by SCAI.

“The SCAI team is very professional,” continues Pietrini, “and any issues are sorted out straightaway. So, while we have considered buying other brands in the past, we would only work with Hitachi in the future.

“The new Zaxis-3 and ZW series models are still relatively new. However, it is already clear that they have helped to increase productivity. The technology is impressive and there has been no downtime. The reliability and support provided by Hitachi and SCAI make an important contribution to our business.”

Operator Marco Cipolloni is particularly satisfied with the performance of the ZW310 wheel loader. The Total Torque Control and three-step clutch cut-off systems are invaluable. These help him to complete a wide range of tasks with relative ease thanks to the flexibility and control at his disposal.

“The ZW310 cab is first class,” says Marco. “The most useful feature is the 360˚ visibility. There’s also lots of space and the adjustable seat and steering wheel add to the comfort factor. I’ve tried other manufacturers’ machines, but Hitachi makes life easy for operators.

“All these features mean that I can operate for up to nine hours without any problems. It also means that I can work faster and load more trucks during busy periods. The Hitachi ZW310 is an excellent all-round package.”