INSPET TALKS Emil Necula | 2023
INSPET TALKS | 2023
Welcome to conversations “with” and „about” people who have impact on the energy infrastructure area, the construction sector, and the private Romanian business environment. We want to highlight the reality of those who work every day, whether as entrepreneurs or employees, to generate meaningful ideas and stories that are both personal and organizationally inspiring.
Our guest is Mr. Emil Necula, the Commercial Director at INSPET, is our guest today. Emil Necula has more than 30 years of experience working in the construction area and has a degree in engineering with a focus on machine tools and construction technology. Emil Necula became a member of the INSPET team in February 1993 and has remained an integral part of the organization ever since. Pragmatic. Analytical. Responsible. Detail-oriented. Promises are binding. The professionalism demonstrated over 30 years of continuous and sustained activity in the company validates him every day.
I’m privileged to have this discussion today about INSPET, your role, and what it entails to be a Commercial Director in a leading company like INSPET. As per your earlier remarks, you initiated your career in the defense industry. Could you share how you incorporated the discipline unique to that sector into a construction company?
As a junior engineer, I began my career at a firm under the Ministry of National Defense, specifically a military unit with technical specialization. It came with a kind of rigor, part of the military discipline, which involves adhering to schedules, rules, promises, and so forth. After being validated as an engineer during those 9-10 years in the military industry, I felt it was time for a change, for new opportunities. That’s how I ended up at INSPET in February 1993. Less than a year after joining the company, it successfully privatized through the MEBO method. This marked a new path as a private company with an entirely different development trajectory compared to a state-owned company, and as you know, it experienced exponential growth. Within the company, I started as an engineer on construction sites – back then, it was called the “Cazangerie,” and I followed all the activities as a project manager, with activities in construction sites in Pitești, Târgu Mureș, Târgu Jiu, Târgoviște, where PETROM had its development zones.
So, you practically started working on construction sites?
Yes, directly on construction sites, where I was also trained as an engineer, but this time, as a construction engineer. New rules, new skills, new opportunities, and a completely different schedule compared to the company where I had worked before. I had to carry over the rigor because, after almost 9 years, in a company with a quasi-military structure (in a sense, regarding activities), the rigor there was something I applied here, starting as an engineer, then project manager and even at some point in roles that continued in all my activities. It certainly helped me and continues to help me today because certain reflexes developed during my junior engineering years can never be changed. It’s like riding a bicycle.
Organization, discipline, structuring, military regimen. That’s what I did. I admit I liked it. I was naturally inclined toward that kind of environment. I enjoyed the rigorous, military aspect of it.
But how did you choose the path to become an engineer?
The path was somewhat carved out within my family. My parents worked in this industry. It’s a tradition. Additionally, the educational system naturally directed me in this direction, with my academic focus being on industrial studies. I was part of the last promotion with a five-year program, leading to the Faculty of Mechanical Engineering. I’m called an engineer. This is why I’m an engineer today. There really wasn’t any other path for me. Being an engineer means being able to look at documentation, think critically, and develop ideas based on what you know and what you’ve learned. Here at INSPET, the opportunities have been entirely different.
I see you take pride in your profession.
Yes, I’m very proud of my profession, my fellow engineers, and the future engineers. I’m proud and I support this profession wholeheartedly. It’s, how should I say, a calling that I feel very close to. I’m reaching a certain age, I’ve been with INSPET for 30 years. I can hardly believe it. I’ve exceeded 30 years, so in February 2023, I’ll have spent 30 years at INSPET.
Congratulations. That validates you!
As a side note, I can tell you that I signed my job application on the day Bill Clinton was elected to the White House in his first term.
Congratulations! Congratulations for all your work.
It hasn’t been an easy journey, that’s for sure. The profession of an engineer, and perhaps my own nature, help me because every day I need to read something new or develop myself, research, and search for new solutions, make quick decisions, and coordinate a group or certain activities.
Speaking of life at INSPET, that’s what it’s like at INSPET. I mean, these are the day-to-day activities. Interacting with all the departments because that’s how it works. Dealing with all external suppliers, which means a lot of external partners, whether they’re from the country, Europe, or non-EU countries. The globalization has led us to communicate with any possible supplier who can meet the technical conditions required by the projects we have.
Coordination of procurement and supplies is essential.
On one hand, for projects that are to be tendered and attempting to win them. On the other hand, for projects we have won and need to execute, to bring to completion both financially and in terms of execution time and quality, the quality of the work performed. Unfortunately, these are things that cannot be avoided in any way.
Or unpredictable, here I’m referring to the last 3 years. The last 3 years have brought significant changes at the macro level.
Unfortunately, the last 3 years have not been predictable. It has been a very tough period. Even tougher than the previous economic crisis, considering the situation in Europe and the war in Ukraine, primarily. I believe that a bit before the war, there was already a strong energy crisis, with a significant increase in prices, especially for gas and raw materials because they are interconnected. We had projects ongoing during this period, and they were very challenging to complete. There were tough negotiations, many of them, to try to achieve the desired results. We managed to successfully complete them. You can see it. The projects are in the final phase now. Unfortunately, due to the unclear situation of the war, there have been significant losses in raw material supply chains.
Given that certain supply chains have been broken, we should not forget that Ukraine was the largest metal producer in Europe. With the war, it destroyed the entire metallurgical industry in Ukraine, and then all our suppliers had to find alternative sources for raw materials. It was China, it was Africa, it was South America. These things led to exponential price increases during this period of reconfiguration, even speculative increases. Then, as new ways of sourcing raw materials were found, prices started to stabilize and even decrease.
Prices started to decrease, somewhat stabilizing at a certain point. We hope they will remain this way in the coming months. We’ll see.
Price trends were initially upward, followed by a plateau, and even after that, a decline. I suppose that during the winter period, they will increase a bit more due to high energy demand.
Unfortunately, construction execution prices have lagged behind. They are fixed according to the project specifications and the contracts we’ve won.
Quite significant, especially considering your meticulous nature and high quality standards. In other words, they are very intricate.
Yes, they are indeed highly complex. Both mechanically and electrically, and in terms of automation. There are no longer any equipment that cannot be integrated into a data transmission or collection system. So, things are much more intricate than many outsiders might think. I would advise young engineers who are currently studying in universities, and even those coming from vocational schools, to pay close attention to the field we work in.
Our field is challenging in the sense of having a sort of, let’s say, freedom that could be translated into something else. But technologically, with our company’s capabilities and the requirements of new projects, we are prepared and can handle any type of project, regardless of its technical and technological level. So, I really encourage them to consider that working in a construction company, particularly in our energy, water, and canal sector, is very rewarding both technologically and in terms of developing engineering skills. They have the opportunity to learn from experienced professionals and have access to equipment, machinery, and new technologies that not many companies in Romania possess.
I encourage them to consider a similar path. There is ample learning opportunity, and there will be numerous projects in Romania and Europe, particularly in the energy sector. The upcoming years will be demanding due to the simultaneous execution of multiple projects.
Simultaneously and in multiple directions, I mean, we’re talking about natural gas, we’re talking about water, sewage.
Certainly, there are many tenders in the natural gas distribution sector, where we can say that we were pioneers in the area of equipment and machinery for polyethylene. Sewerage works and water pipelines. Oil transportation, specifically the oil transport companies from CONPET. The gas industry, whether it’s ROMGAZ, DISTRIGAZ, or TRANSGAZ. There will be a lot of very complex projects. So, 2024 will be a very busy and crucial year for our construction industry. There will be a lot of work, and considering that there are fewer and fewer firms, it will be very challenging. But there will be many job opportunities in this field, especially in ours. Jobs will be created.
How are you doing in terms of the labor force?
We were successful in refreshing the company’s staff. We’ve chosen personnel who can handle new technical and technological problems. Also, those that are ready to learn. It is critical that they have a desire to study because otherwise, you will be working in vain and the outcomes will be poor.
I can even take some pride in this. Every engineer who has worked under my guidance, especially during my tenure as site manager in Videle for about a decade before becoming the commercial director, has left with a wealth of knowledge. They all learned extensively, progressed in their careers, and flourished. Not only within INSPET but potentially in other companies as well, they all had a stint under our tutelage and were immensely satisfied with the learning opportunities they gained.
Yes, and probably because your attitude was that of a mentor.
Yes, I admit that I didn’t keep any secrets. I was always there for them, supporting them in whatever they wanted to do or learn. As I mentioned earlier, I have immense respect for engineering, and so I provided guidance and support in any way they needed.
What do you believe are the primary roles of a good manager … But you’ve already answered.
From my perspective, I believe a good manager must first and foremost possess excellent communication skills. This extends to colleagues, subordinates, other departments, construction sites, and the executive leadership of the company. Additionally, they should be able to make very rapid and accurate decisions because in our industry, there’s not much time for deliberation. Things need to be done quickly and correctly. Unfortunately, so to speak, every aspect of a project must be closely monitored from start to finish to ensure that everything is resolved correctly and executed well.
And these communication skills that you consider crucial in a managerial role, were they innate, or did you develop them over time?
No, it would be unreasonable to claim that I always possessed them. You develop them. Leadership skills aren’t something you naturally possess; they’re cultivated. They evolve as you progress through various stages in your career, moving from being an engineer to a site manager, director, or department head. You can’t simply leap into a managerial role directly. In my current role in the commercial sector, I had a significant advantage due to the ten years I spent working as a project manager on construction sites.
I had an in-depth understanding of what it entails to work on a construction site, which is the bedrock—the core—of our construction company’s operations. I knew precisely what was required, and I had the knowledge to tackle challenges effectively. This experience proved immensely valuable and was, indeed, essential.
So, if I were to ask you to give advice to young students starting their journey (their professional journey), what would it be?
I believe my advice would be for them to have a genuine desire to learn. If they don’t have that desire, they won’t stand a chance wherever they go. I even have a maxim on this topic. I remember it because we’re in the realm of TikTok, which goes like this: “A path that becomes a burden – abandon it. Choose another route!” Because if you find that you can’t handle something, something that pains you, something that creates difficulties, then focus on something else. So, I wish for them to come with a thirst for learning. There’s much for them to learn, and they will undoubtedly find satisfaction in it because the best satisfaction comes from the work you do. If you don’t find satisfaction in the work you do, it becomes complicated, in my opinion.
If you don’t enjoy your work and find satisfaction in what you do, it’s challenging to go about your daily life. It’s complicated.
I mentioned earlier that the last three years have brought many macro-level changes, and there has been no predictability at all. We’re referring here to the pandemic, the war in Ukraine, and increasing inflation. What measures have you taken to cope with the immediate consequences of high prices for both raw materials and energy?
I’d like to mention that during the pandemic period at INSPET, especially in the commercial department, we didn’t experience any form of lockdown. Sick leaves were only taken when necessary. Our operations continued daily as scheduled, and remote work wasn’t implemented. The company functioned normally. Regarding the substantial price increases, they prompted us to adopt a new approach to our activities. This involved addressing the high electricity consumption in the industrial production facility (FPI) area and the consumption of fossil fuels in the automotive sector. We achieved this by implementing measures across our construction sites, offices, and entry and exit points to align with the regulations of that time. With a few exceptions, we achieved satisfactory results.
And here, we are referring to the West Ploiești Industrial Platform.
In this area, there’s a significant electricity consumer, specifically the pipe bending machine that employs induction technology to bend steel pipes. This process demands substantial power. In light of this, we opted for the implementation of a photovoltaic park, a choice that has proven to be highly effective. The park was developed, implemented, and put into operation at a capacity of approximately 200 kW amps. This goes a long way in covering the energy needs of the industrial base, which also includes welding equipment, polishing machines, and so forth. Furthermore, as a result of transitioning to green energy consumption through our INSPET-owned photovoltaic park, we made the decision to replace our fossil fuel-based vehicle fleet, primarily using diesel, with a new 100% electric fleet. Simultaneously, to ensure our complete independence in this regard, we implemented a program to establish autonomous electric vehicle charging stations – one within the industrial base and two at the company’s headquarters on Democrației Street, Number 15.
Economically speaking, the results are certainly evident because there are no longer fuel costs to contend with. Diesel prices have fluctuated significantly, generally increasing. Our electrical consumption is notably lower. We also contribute to reducing pollution, albeit to a limited extent. Our operational range within the company’s premises has significantly improved, which greatly aids our operations. We now have a more flexible program. Company vehicles are available for employees who require them to carry out tasks within the company, whether it’s at the West Industrial Platform, with suppliers in Ploiești, or in the surrounding area. This adaptable and swift response system has proven to be extremely advantageous.
We possess several keys / cars that can be utilized for work-related assignments. These vehicles are accessible to any INSPET employee holding a valid driver’s license. They can conveniently collect the key, complete their task, and return the key once they’re done, creating a highly flexible arrangement.
What does a day in your professional life look like? What does a day at INSPET look like? We come to the office in the morning and…
Fortunately for me, a workday at INSPET doesn’t resemble the one before.
It’s good that you say “fortunately”!
Indeed, because otherwise, it would become monotonous. At least for me, it would become very monotonous. So, a day starts with the morning schedule, checking the activities from the previous days, the progress of orders, and deliveries. These activities are carried out with our procurement colleagues. Any issues that arise on construction sites, which are almost daily, involve phone calls and written requests – all of which need to be resolved quickly because the construction site is the top priority that needs assistance and attention.
Then, in the commercial department, two types of activities begin – on one hand, contacting and contracting new suppliers, and on the other, negotiating contracts related to the projects we are working on. This involves somewhat intensive work because there are contracts, proposals, revisions, discussions, and negotiations involved. All this leads to the final signing of mutually beneficial contracts. It’s a mix of tasks.
On the other hand, there’s the commercial activity, which involves selling and buying services. The sales aspect involves our pipe bending facility. We have a high number of requests for pipe bending, ranging in size from 3 inches to 24 or even 28 inches, for the entire natural gas and water industry in Romania. All our colleagues from construction companies, whether they are from Târgu Mureș, Constanța, Bucharest, or Arad, turn to us. This commercial activity is an important source of revenue for INSPET. A dedicated team manages these activities, ensuring a relatively continuous flow of work. On the other hand, it’s a financial asset for the company. This is what the commercial aspect I deal with every day entails, starting from quotation requests, sending quotes, placing orders, and managing commercial relationships, which involves advance invoices and final invoices for the products we sell. So, that’s what a day looks like. A full day, and as I mentioned, every day brings new demands, priorities, and challenges, even unique challenges. There are certain activities that present real challenges. Things we haven’t encountered before. We need to do research, find new suppliers, explore the European market.
I admit that we are very close to our traditional suppliers. We have a fair partnership and try to resolve most of the issues with them. However, considering the diversification of INSPET’s development (we have returned to works in the polyethylene gas distribution area, a new real estate development area has emerged, and the traditional natural gas transport area has expanded), all of this has led to a significant expansion of our supplier base.
We have implemented a well-structured integrated management system in which we annually evaluate all our suppliers. We have specific evaluation criteria, which we communicate annually, and they respond to these criteria. There are suppliers who have exited our network because they no longer meet the criteria, either due to not meeting the required standards or losing certain authorizations, among other reasons. However, we have also added many new suppliers. So, in all these evaluations, during the integrated system reviews with beneficiaries, everything has been fine, consistently.
In other words, they follow certain procedures from start to finish. There are no aspects that are not covered in a traceability process. There are certain gaps we are working to fill, and we aim to educate where necessary, but we rigorously adhere to the procedures. This greatly aids us.
Our projects can last for 6 months, 1 year, or 2 years, and traceability greatly assists us in verifying the project and its activities. So, we strictly adhere to these procedures.
I can share a simple example as well. The handover of the position from the former commercial director to me took 15 minutes.
Yes, with the necessary quotation marks, you had a solid foundation. So, it’s clear. The course was the right choice and is validated after 30 years of activity.
So, YES – I can tell you that I wouldn’t change anything.
Congratulations at the same time.
Thank you. I’ve always wanted, wherever I’ve been, in any field, to find satisfaction in what I do. And to develop people. To support people because I believe that the most important aspect in a company is the team of people. We can have the most expensive cars, but without people… it’s pointless. So, I believe the team is the most important, the people.
I look forward to continuing these discussions and sharing your experience.
Certainly. There will definitely be more things to come. Many things that will be useful both for us and for the young people who are watching us. Young people shouldn’t avoid INSPET and not just INSPET but they shouldn’t avoid the field, the field of construction, fluid infrastructure.
It has been, is, and will continue to be a field with continuous development.
This Podcast has been brought to you by INSPET, Romanian company, a direct descendant of a seven-decade history of performance in the Oil & Gas Industry. If you liked this conversation and you believe that we can be inspirational for your friends, please forward and share it and show that we can do it in Romania, too, it is important that we really want it and are willing to put in the required work!
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Until our next meeting, be inspired in everything you do!
