Casa do Construtor, Brazil’s first company specializing in rentals of small civil construction machinery and equipment, signed a contract in late August to open its first store in yet another foreign market: Uruguay. The store is set to open in the capital city of Montevideo by the end of 2022.
The brand is currently a member of Franchising Brasil — an industry internationalization program held through a partnership between the Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the Brazilian Association of Franchising (ABF) — with around 500 stores across Brazil and abroad. The chain has 496 Brazilian locations, with the most recent opening in the city of Piracicaba. The group also has four foreign locations, all located in Paraguay. Plans for the brand also include reaching 1000 locations by 2026.
In addition to its continued growth in Brazil, the brand has continued working to grow internationally, focusing on nearby Latin American countries like Uruguay, Chile, Peru, Colombia and Mexico. The group also intends to expand its European operations soon: Portugal will serve as the chain’s doorway to the continent. According to Bruno Arena, Growth Director for Casa do Construtor, the choice to expand into Latin American countries was made due to their geographic proximity to Brazil and to the simplified taxation processes, serving as a laboratory for exploration of new markets.
It is the biggest company in Latin America renting civil construction equipment for day-to-day solutions and is working hard to achieve this same status in other countries. The first international unit was opened in the Paraguayan capital of Asunción in April 2018. After the franchise’s success in the country, another store was opened in 2020, in the city of San Lorenzo. Two more stores were opened in Paraguay this year: another Asunción location that opened in January, and one in the city of Luque that opened on August 12.
Kicking off the brand’s internationalization
The chain started moving to internationalize after noticing a global need in the civil construction industry to rely on appropriate equipment that is in good condition and up to date. The brand’s expansion plan abroad began in 2018, with the inauguration of the first international unit in Asunción. The company also plans to open five more units by 2024.
Plans to expand the franchise’s operations came after the chain’s excellent performance in 2021: the brand reached the milestone of 400 locations along with growth of 54%, with revenues in excess of R$ 500 million.
“Our goal is to open at least 100 more locations in 10 countries by 2025,” says Bruno.
Casa do Construtor and its advantages in the market
According to Bruno, the biggest competitive edges that Casa do Construtor has are the equipment it offers and the easy access customers have to products. The company has moreover been recognized for its solid management practices and broad support for franchisees. Users also rely on technical support from the brand.
“We have a vast portfolio of equipment and solutions that are indispensable in civil constructions, jackhammers, pneumatic hammers, concrete mixers and scaffolding, up through lawn mowers, pressure washers and carpet cleaners. The most modern equipment is offered, with Casa do Construtor performing maintenance and providing a warranty. Customers have access to our products without the need to mobilize capital for an acquisition,” the Director says in closing.
About Franchising Brasil
Franchising Brasil is a joint project of the Brazilian Franchising Association (ABF) and the Brazilian Trade and Investment Promotion Agency (ApexBrasil), which aims to support the internationalization strategy of Brazilian franchise networks and their international trade promotion. The initiative was conceived to promote this recognized business model in the main international markets.