News Summary
The construction industry in North Carolina is experiencing significant growth, particularly in the residential sector, despite challenges such as rising material and labor costs. While some areas, such as multifamily units, may see declines due to interest rates, sectors like lodging and education are expected to grow. Top metropolitan regions forecasted for growth include Raleigh/Durham/Chapel Hill, Charlotte, and Greensboro. The industry ranks fifth nationally, with increasing wages and employment. Companies are encouraged to diversify services and explore geographic expansion to capitalize on emerging market opportunities.
Charlotte, North Carolina – The construction industry in North Carolina is currently thriving, with spending expected to rise significantly in the residential sector over the next few years. This growth occurs amid competitive market conditions, where economic forecasts indicate a potential flattening or contraction in national construction spending. Rising material costs and increased labor expenses are anticipated to negatively impact the dollar’s value in construction budgets.
Principal consultant in FMI’s strategy practice, experts recommend construction companies differentiate themselves to access new markets successfully. Despite slight decreases in multifamily construction due to interest rate pressures, other sectors expected growth include lodging, power, transportation, and education. In contrast, certain areas like religious, public safety, and manufacturing sectors may face declines.
Analyses reveal strong growth projections for specific metropolitan areas within the state. The top five regions forecasted for growth include Raleigh/Durham/Chapel Hill, Charlotte, Greensboro, Wilmington, and New Bern. Conversely, regions such as Winston-Salem, Hickory/Lenoir/Morganton, Burlington, and Fayetteville are anticipated to see slower growth.
North Carolina’s construction industry ranks fifth strongest in the nation, according to a study based on U.S. Bureau of Labor Statistics and Census Bureau data. From 2021 to 2024, construction wages in the state increased by 11.4%, accompanied by a 13% rise in construction employment, highlighting the sector’s ongoing vitality.
Companies looking to succeed in current market conditions should consider three core strategies for service diversification: adding services, expanding into new sectors, and geographic diversification. While geographic diversification presents particular challenges for businesses seeking new growing markets, business owners are advised to assess their motivations and understand the local demand prior to expansion.
Comprehensive research on market competition and operational costs is crucial for successful growth into new locations. Acquisitions may serve as a great driver for growth; however, leaders must evaluate whether the purchase will enhance value and consider the necessary investments of time and resources involved.
The construction market within the state has also seen a notable increase in data center constructions, which has surged 15-fold in the last decade. Spending in data centers is forecasted to grow by 5% annually for the next five years, signifying a robust feature of the North Carolina construction landscape. This signifies an emerging sector that is becoming increasingly central to the overall industry growth.
In summary, the North Carolina construction industry demonstrates resilience amid competitive and challenging market conditions, with significant projected growth in the residential sector and specific metropolitan areas. Companies are encouraged to innovate and assess opportunities thoroughly, ensuring strategic growth efforts align with market demands and expectations.
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Additional Resources
- CBS 17: North Carolina has 5th strongest construction industry
- Wikipedia: Construction industry
- Business North Carolina: Protecting your construction budget in 2025
- Google Search: North Carolina construction growth
- News & Observer: Real estate news in North Carolina
- Encyclopedia Britannica: Construction
- National Law Review: Antitrust compliance for construction companies
- Google News: North Carolina construction industry
- Ward and Smith: Highlights of North Carolina construction legends
Author: STAFF HERE INDIANAPOLIS WRITER
INDIANAPOLIS STAFF WRITER The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
