Conditions put it together for builders.

PositionCONSTRUCTION

For two years, commercial builders leaned heavily on publicly funded projects to survive. But an improving economy stimulated a rebound in the private sector last year. "There's just not much bad news out there," says Tony Plath, a UNC Charlotte banking professor and consultant to the Carolinas Associated General Contractors.

Not that there weren't problems. Labor became scarce as projects multiplied, and a construction boom in China boosted the cost of building materials worldwide. "It was a problem for projects already bid," says Chuck Wilson, president of Durham-based C.T. Wilson Construction. "Over an eight-month period, steel almost doubled in price."

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That meant higher costs than builders anticipated, which trimmed margins. Nevertheless, Wilson doubled revenue to $46 million in 2004, thanks to public and private projects, which included $8 million in renovations for four buildings at N.C. Central University in Durham, a $6 million arts-and-humanities building at UNC Chapel Hill and a $1.8 million conversion of two tobacco warehouses into a restaurant and office space in downtown Durham. "We've been awfully fortunate to have the university bond-issue work."

Ike Grainger, vice president of business development for Charlotte-based Shelco, also saw work increase through private and public projects. Among his company's projects in Charlotte are Piedmont Town Center--two eight-story buildings that will combine retail, office and residential space--an office building for Carolinas HealthCare System and office buildings for Piedmont Natural Gas. "We're coming out of the recession, and the overbuilt market is tightening up a bit."

Andrew Jenkins, managing partner of Karnes Research, which tracks commercial construction in Charlotte and the Triangle, says both markets have recovered in different ways. Most of the development in Charlotte follows Interstate 485, the loop being built around the city. The Bissell Cos. is developing speculative office buildings in its Ballantyne Corporate Park in south Charlotte. Most manufacturing development is in southwest Charlotte.

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There has been little office, retail or flexible space built downtown since the first quarter of 2003. This year might be busier. The city is building a $265 million basketball arena, which should be completed this fall, and Charlotte-based Wachovia is planning a 34-story, 750,000-square-foot office building downtown that...

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