NAICS 23

Construction Industry: 2026 Market Survival & Risk Analysis

Construction of buildings, heavy and civil engineering, specialty trade contractors

Construction: 938,480 Establishments Nationwide

938,480
Total Establishments
8,135,442
Total Employment
$78,996
Average Annual Wage
44.2
Average Entry Risk Score

What Drives Construction Risk

Construction runs on cycles. Housing starts, infrastructure budgets, and interest rates drive demand state by state. High capital requirements mean firms need strong cash flow to survive downturns. At $78,996 average wage, labor costs sit well above the all-industry average of $64,845, and skilled-trade shortages push wages higher in booming states. States with steady public works spending and population growth tend to show the best firm retention.

Construction vs. All-Industry Average

How this sector compares to the average across all ten tracked industries.

Avg Entry Risk
44.2 This sector
43.1 All sectors
Avg Annual Wage
$78,996 This sector
$73,293 All sectors
Total Employment
8.1M This sector
9.6M Avg per sector

State Leaderboards for Construction

Lowest Entry Risk

Best overall market conditions

  1. Wisconsin 25.1
  2. Michigan 28.0
  3. Pennsylvania 28.4
  4. Alabama 30.3
  5. Nebraska 32.5

Highest Entry Risk

Most competitive markets

  1. Hawaii 61.1
  2. Alaska 60.9
  3. Wyoming 59.3
  4. Idaho 58.4
  5. North Dakota 58.3

Best for Firm Retention

Highest 5-year firm survival rates

  1. Maine 100%
  2. Wisconsin 98.04%
  3. Nebraska 96.08%
  4. Michigan 94.12%
  5. Alabama 92.16%

Highest Growth Momentum

Fastest new firm formation

  1. Idaho 100
  2. Montana 73.92
  3. Utah 70.64
  4. Florida 70.29
  5. Washington 55.79

Top Metro Markets for Construction

Best and worst metro areas out of 342 with construction data.

Most Favorable Metros

Lowest Metro Market Score

  1. Beckley, WV 11.7
  2. Lawton, OK 11.9
  3. Gadsden, AL 14.3
  4. Dalton, GA 15.0
  5. Brownsville-Harlingen, TX 15.4

Most Challenging Metros

Highest Metro Market Score

  1. Vallejo, CA 80.4
  2. Bellingham, WA 77.4
  3. Wenatchee-East Wenatchee, WA 76.9
  4. Elizabethtown, KY 75.7
  5. Seattle-Tacoma-Bellevue, WA 74.5

Entry Risk by State

Geographic distribution of market entry risk for construction. Click any state for detailed analysis.

Entry Risk by State Alaska — 60.9 · #50 Alabama — 30.3 · #4 Arkansas — 34.3 · #8 Arizona — 38.6 · #16 California — 47.8 · #32 Colorado — 53.2 · #40 Connecticut — 43.2 · #27 District of Columbia — 56.9 · #45 Delaware — 43.0 · #26 Florida — 54.5 · #42 Georgia — 42.1 · #25 Hawaii — 61.1 · #51 Iowa — 34.3 · #7 Idaho — 58.4 · #48 Illinois — 49.1 · #34 Indiana — 35.0 · #11 Kansas — 51.5 · #38 Kentucky — 39.8 · #19 Louisiana — 53.6 · #41 Massachusetts — 41.5 · #23 Maryland — 35.0 · #12 Maine — 35.5 · #13 Michigan — 28.0 · #2 Minnesota — 37.3 · #14 Missouri — 54.6 · #43 Mississippi — 50.8 · #36 Montana — 45.0 · #28 North Carolina — 38.2 · #15 North Dakota — 58.3 · #47 Nebraska — 32.5 · #5 New Hampshire — 32.6 · #6 New Jersey — 48.3 · #33 New Mexico — 47.4 · #31 Nevada — 39.8 · #20 New York — 51.1 · #37 Ohio — 41.7 · #24 Oklahoma — 52.2 · #39 Oregon — 54.8 · #44 Pennsylvania — 28.4 · #3 Rhode Island — 38.8 · #17 South Carolina — 47.0 · #30 South Dakota — 34.7 · #9 Tennessee — 34.8 · #10 Texas — 46.3 · #29 Utah — 40.1 · #22 Virginia — 39.0 · #18 Vermont — 40.0 · #21 Washington — 58.1 · #46 Wisconsin — 25.1 · #1 West Virginia — 49.5 · #35 Wyoming — 59.3 · #49
Low Moderate Elevated High

Tap a state to view details

All 51 States Ranked for Construction Entry Risk

Complete ranking of all 51 states by Entry Risk Score for construction. Lower score indicates better market conditions for new entrants.

Construction Entry Risk by State

Rank State Risk Score Classification
#1 Wisconsin 25.1 low
#2 Michigan 28.0 low
#3 Pennsylvania 28.4 low
#4 Alabama 30.3 moderate
#5 Nebraska 32.5 moderate
#6 New Hampshire 32.6 moderate
#7 Iowa 34.3 moderate
#8 Arkansas 34.3 moderate
#9 South Dakota 34.7 moderate
#10 Tennessee 34.8 moderate
#11 Indiana 35.0 moderate
#12 Maryland 35.0 moderate
#13 Maine 35.5 moderate
#14 Minnesota 37.3 moderate
#15 North Carolina 38.2 moderate
#16 Arizona 38.6 moderate
#17 Rhode Island 38.8 moderate
#18 Virginia 39.0 moderate
#19 Kentucky 39.8 moderate
#20 Nevada 39.8 moderate
#21 Vermont 40.0 moderate
#22 Utah 40.1 moderate
#23 Massachusetts 41.5 moderate
#24 Ohio 41.7 moderate
#25 Georgia 42.1 elevated
#26 Delaware 43.0 elevated
#27 Connecticut 43.2 elevated
#28 Montana 45.0 elevated
#29 Texas 46.3 elevated
#30 South Carolina 47.0 elevated
#31 New Mexico 47.4 elevated
#32 California 47.8 elevated
#33 New Jersey 48.3 elevated
#34 Illinois 49.1 elevated
#35 West Virginia 49.5 elevated
#36 Mississippi 50.8 elevated
#37 New York 51.1 elevated
#38 Kansas 51.5 elevated
#39 Oklahoma 52.2 elevated
#40 Colorado 53.2 elevated
#41 Louisiana 53.6 elevated
#42 Florida 54.5 elevated
#43 Missouri 54.6 elevated
#44 Oregon 54.8 elevated
#45 District of Columbia 56.9 high
#46 Washington 58.1 high
#47 North Dakota 58.3 high
#48 Idaho 58.4 high
#49 Wyoming 59.3 high
#50 Alaska 60.9 high
#51 Hawaii 61.1 high

Construction: Frequently Asked Questions

2026 sector data answers to common entry-decision questions.

Which state has the lowest construction entry risk in 2026?

Wisconsin ranks #1 with an entry risk score of 25.1, 19.2 points below the 44.2 national average for the construction sector.

Which state is the most challenging market for new construction businesses?

Hawaii sits at the bottom of the 51-state ranking with an entry risk score of 61.1. New construction firms here face structural headwinds across retention, growth momentum, and wage pressure.

How many construction establishments operate in the United States?

938,480 construction establishments are tracked across the 51 U.S. state markets, employing 8,135,442 workers at an average annual wage of $78,996.

Which state has the highest 5-year firm retention for construction?

Maine leads on firm retention with a 100% 5-year survival percentile. New construction establishments in this state clear the 5-year mark at higher rates than 100% of all states.

What is the average entry risk score for construction across all U.S. states?

The 51-state average entry risk for construction is 44.2. Scores range from 25.1 (Wisconsin) to 61.1 (Hawaii), a spread of 36.0 points. Lower scores indicate more favorable conditions for new businesses.

Not in Construction?

Compare entry conditions across other sectors.

NAICS 62 Healthcare and Social Assistance NAICS 44-45 Retail Trade NAICS 72 Accommodation and Food Services NAICS 54 Professional, Scientific, and Technical Services NAICS 52 Finance and Insurance NAICS 53 Real Estate and Rental and Leasing NAICS 56 Administrative and Support Services NAICS 51 Information NAICS 81 Other Services

How We Calculate Entry Risk

Entry Risk Score combines five normalized metrics: firm retention rates, growth momentum, market volatility, establishment density, and wage pressure. All indices are scaled 0-100 for consistency.

Read full methodology →