2 min read April 2023 — David Privitera, president and CEO of Concorde Construction Company, spoke with Invest: about the construction market in the Charlotte region. He commented on how the labor shortage has been a big challenge, and his company’s continued focus on how to improve recruitment.
What have been the key highlights over the last year for Concorde Construction?
We had our biggest revenue year in company history in 2022 and came into 2023 with a backlog to exceed that this year. It was also a profitable year for the company. Looking ahead, our 30th anniversary is next year, and we are gearing up for that celebration. For smaller businesses, it is rare to be around that long, so we are very fortunate.
How would you describe Concorde’s approach and what sets you apart from the rest of the industry?
For the last three years, we have all had to rethink our approach. The world has been changing so quickly, but we were lucky that our industry was considered essential. We never stopped working, but it has been a moving target of issues including supply chain, price escalation and now interest rate increases.
All these things are pebbles in the pond causing ripples in the industry. We must stay relevant and stay informed of the trends. We are consistently providing feedback or asking questions to keep tabs on where things are going. We have always focused on building strong, trusting relationships, which is extremely important in today’s world. Who you surround yourself with is an important decision in business. Having great relationships that we support and nurture has been a big factor in the growth of our company. Meeting new clients and being very transparent in order to build trust is what takes you to the next level. That has been our approach, and although we aren’t the first to do it, we do it well.
What does the landscape currently look like in regard to project activity?
We are still trying to figure out what the “office of the future” is going to be, given the hybrid work-from-home model. There are a lot of questions being asked in terms of commercial real estate as a whole.
We spend time in multi-family and industrial sectors, and those have continued to be strong. Overall, it’s important that we understand where we are in the market cycle. We are seeing a trend of new hotels or renovations of existing hotel properties to be ready next year or into 2025.
We have a nice diversity of projects coming, and we always try to make sure we aren’t concentrating too much on any one area. We have a lot of urban projects and adaptive reuse projects as well. I am excited about the different types and sizes of projects we have coming up. That makes for a better and much more fun year for the team.
Do you see the adaptive reuse trend continuing?
I think it will continue. There are 100 to 120 empty floors in Downtown Charlotte right now. That is two or three office towers worth of space that will be sitting empty for some period of time. What are the adaptive reuse opportunities for those? There is always a shortage of housing, but it must be affordable. We need innovation to be part of a solution. Those are the projects that intrigue me. In a densely populated city like Charlotte, you have to think about the reuse opportunities to create efficient, affordable, and fun spaces for people to live, work, and play in.
What are some ways you are incorporating and leveraging technology and sustainability?
The software platforms available to us and the methods we have to send and coordinate information are extraordinary. It is amazing how quickly we get information in and out. There are still a lot of opportunities for closing some communication gaps. One challenge our industry has with technology is the labor shortage. That has been an issue since the recession in 2010. When a large part of the workforce left the industry, those that came back in 2012 were far fewer and less qualified. Here we are a decade later, much of the workforce is now at retirement age. There is an underlying concern of not having enough employees. Generations are not as intrigued to come into the industry. We explore ways to innovate and decrease the number of on-site hours needed to complete a project. As far as sustainability, the current building and energy codes have changed drastically. It’s easier to check those boxes now, as most products and manufactured goods have sustainable features built in.
With that said, we are always looking for ways to save and reuse whatever we can. A project sustainability program is as common in what we do today as a project safety program is.
How much of a challenge has the workforce shortage been to your business?
The labor force is a real concern to me and the industry. I have spent some time working with others in the industry on how we can improve recruitment. We need better training for our trade people.
A positive trend is that there are more women coming into the construction field. While it is still a male-dominated industry, we have seen such strong female emerging leaders, which is wonderful.
We need to think about how to recruit everyone into what we do. We need to think outside the box and do the best we can to communicate that this is a very viable career path for people. It can be very lucrative if you have a strong work ethic and focus on making good decisions.
We are a strong advocate for drawing people into the industry. This is our biggest underlying issue and a long-term concern that needs to be solved.
What is your outlook for the construction industry in the region over the next few years?
We are blessed to be where we are. The I-85 corridor will remain robust, Charlotte is positioned well in this region. Our airport is the unsung hero since it is such an efficient hub for American Airlines. While the regional cost of living has gone up, it is still more reasonable than other cities Charlotte competes with. We have so many great factors that ensure people will continue coming here. I have been here for 24 years, and I have been able to see a lot of the evolution and positive progress.
It is a big-small town, driven by your relationships and reputation. One thing that this pandemic has taught us is that we are a global economy since so many manufactured goods come from all over the world. Overall, I think we have a few more quarters of volatility and watching for economic challenges and trends. We have to be aware of possible economic challenges. I do think we are very blessed. With that said, I am extremely optimistic for the future. Things will continue to be prosperous in this region.
For more information, visit:
