NAICS 23

Construction in Alabama: 2026 Market Risk Report

Entry risk 30.3 (Moderate), ranked #4 of 51 states. 12,667 establishments, 106,835 jobs.

Entry Risk Assessment

Entry Risk Score 30.3
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Moderate

ⓘ Lower is better. Relative to national construction average.

⛔High Barrier to Entry🛡️Stable Market

Alabama exhibits structural stability in construction, with volatility at 16.6 and firm retention ranking in the top 5. These metrics suggest lower cyclical risk compared to the national baseline.

5-Year Firm Retention
92.2%
Percentile within industry
Rank #5 of 51 states
Growth Momentum
26.6
Scale of 0-100
Rank #28 of 51 states
Establishment Density
10.1
vs. national average
Rank #12 of 51 states
Market Volatility
16.6
Lower is more stable
Wage Pressure Index
58.8
Labor cost pressure

12,667 Establishments in Alabama

12,667
Establishments
+3.5% YoY
106,835
Total Employment
+5.5% YoY
$73,164
Average Annual Wage
+5.7% YoY

Alabama vs National Construction Average

How Alabama's construction market compares to the national average across all 51 states.

Metric AL National Difference
Entry Risk Score 30.3 44.2 -13.9
5-Year Retention 92.2% 51.0% +41.2
Growth Momentum 26.6 30.9 -4.3
Market Volatility 16.6 20.9 -4.3
Establishment Density 10.1 24.6 -14.5
Wage Pressure 58.8 57.1 +1.6

Green = favorable vs national average. Red = less favorable. Metrics are relative within construction only.

Alabama Ranks #4 of 51 for Construction

Alabama ranks #4 out of 51 states for construction market entry conditions.

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 You 30.3 moderate
#5 Nebraska 32.5 moderate
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

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does Alabama stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How Alabama's construction market compares to bordering states.

Tennessee 34.8 #10/51 Georgia 42.1 #25/51 Mississippi 50.8 #36/51 Florida 54.5 #42/51

Other Industries in Alabama

Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Finance and Insurance → Real Estate and Rental and Leasing → Administrative and Support Services → Information → Other Services →