Poettker Construction CEO & Chairman Offers Regional Perspective on 2025
In 2024, Poettker Construction’s Southeast team constructed 1.3 million square feet of new facilities and renovations in the areas of distribution and warehouse, federal and defense, and retail. GroundBreak Carolinas recently caught up with Charlotte-based CEO and Chairman Keith Poettker to get his thoughts and insights about the year ahead.
What is your outlook on the construction industry for 2025?
Over the past several years, the construction industry has seen significant growth across all market sectors. Although 2024 was a relatively flat year with tremendous headwinds that the CRE community had to overcome, we are forecasting marginal growth starting in the last half of 2025 with fairly robust growth in 2026 and 2027. Interest rates still have not come down as much as the market would like to see, which continues to put pressure on the CRE community. In the real estate climate, interest rates, underwriting pressures, and debt expenses are all headwinds that will dictate growth projections for the private development side in terms of getting deals across the finish line.
Despite these challenges, there will be opportunities in reshoring US manufacturing as foreign direct investment increases. With increased shipping across the Atlantic into the Port of Savannah and Charleston, I expect to see more cross-terminal dock expansions and other logistic distribution center projects throughout the Southeast. As some infrastructure gets built across the US, development spurred from that should create more build-to-suit industrial space projects stemming from manufacturing expansion, warehouse production, and some mixed-use multifamily developments tied to increased population demand and affordable housing needs.
What are you most excited about?
In the last few years, we’ve developed some wonderful partnerships with many industrial developers throughout the Southeast and we are excited to continue to grow those relationships in support of their portfolio needs. In addition, I’m excited to offer our capabilities, capacity and experience in the retail, education, and municipality market sectors throughout the Southeast region this year as well.
I am also really excited about the technological advances we are seeing and using those tools to streamline productivity, whether utilizing AI communication tools or drone technology for mapping sites and other due diligence. For instance, we have deployed drones on work sites to take photos, document, and address on-site safety in real-time. With a single flight, we can create 3D models, conduct thermal scans, perform quantitative take-offs, and carry out surveys. On the design side, we have used BIM software to streamline the design development process and, in partnership with our wonderful subcontractor partners, create a more robust fabrication and fast-tracking process.
Poettker is in the planning stages of establishing a Southeast regional headquarters. This will set us up for more adequate training and support for our staff and allow us to better serve our clients and business partners in the region. We are looking at sites in both North and South Carolina and hope to decide on the location later this year.
What concerns you the most?
The trade labor shortage is real. We are concerned about making sure we have qualified personnel – from management down to trades – on the right projects and partnering with subcontractors and vendors who have the capacity, capability, character, and capital to manage the work successfully. Fortunately, the construction industry has some great workforce development programs through organizations like Carolinas AGC and ABC Carolinas. In addition, the Southeast region has excellent trades apprenticeship and construction management programs through community and technical colleges and higher education schools and universities.
The industry needs to continue to partner and leverage these technical colleges and universities while taking a more purposeful intent to reach the next generation in area high schools and middle schools. Educating youth on career opportunities in construction and providing real-world job experiences can help generate strong excitement for a career in construction.
What are the biggest challenges facing the construction industry in the Carolinas?
The Carolinas, and particularly the Charlotte region, has had significant economic growth and development, which has wonderful positives for the community including a growing tax base for communities and a surplus in career opportunities. The challenge is keeping up with affordable housing demands along with the infrastructure expansion and maintenance needs tied to this growth – whether it be utility, transportation, or community infrastructure such as hospitals, EMS, police, and education needs that are stressed to support this growth.
So far, we’re not seeing as much price pressure as 2021 through 2023 in various commodities impacting construction costs. While that is somewhat stabilized, a geopolitical event or other significant disruption in supply and demand could cause another round of hyperinflation. Private development and, in particular, multi-family tied to affordable housing, is seeing a lot of underwriting pressure due to the increased interest rates. These interest rates need to come down, especially if the goal is to provide affordable housing, which is required for a robust workforce.
About Poettker Construction: Established in 1980, Poettker Construction is an award-winning, family-owned business specializing in construction management, design/build, general contracting, and self-perform services with an emphasis on exceeding the client’s expectations.
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