NAICS 23

Construction in Birmingham, AL

Metro Market Score 52.6 (Challenging), ranked #221 of 342 metros. 2,861 establishments, 29,161 jobs.

Metro Market Score 52.6

Favorable 0-35

Moderate 35-48

Challenging 48-60

Difficult 60+

Challenging

ⓘ Lower is better. Relative to national construction average.

💰High-Cost Market

Birmingham pairs above-average construction concentration (63.2) with positive employment growth (trend: 67.3). The market is competitive but still expanding, leaving room for well-positioned new entrants.

Industry Concentration

63.2

LQ: 1.08

Rank #216 of 342 metros

Wage Competitiveness

81.3

$81,155 avg wage

Growth Trend

↑ 67.3

Employment growth index

Rank #113 of 342 metros

Wage Pressure

33.5

YoY wage change index

2,861 Construction Firms in Birmingham

2,861

Establishments

+3.0% YoY

29,161

Total Employment

+4.0% YoY

$81,155

Average Annual Wage

+4.3% YoY

1.08

Location Quotient

Above national avg

Within Alabama

#12 of 12

construction metros in state

Alabama state rank

#4 of 51

for construction entry risk

vs State Median

+20.1

worse than median (32.5)

Birmingham vs Alabama Statewide

How this metro's construction market compares to Alabama overall. The state ranks #4/51 for entry risk.

Measure	Birmingham	AL Statewide
Overall Score	52.6 Challenging	30.3 Moderate
Score Type	Metro Market Score	Entry Risk Score
Rank	#221 of 342 metros	#4 of 51 states

Metro and state scores use different methodologies (metro has 4 QCEW-based metrics; state adds BDS survival and momentum data). Direct score comparisons are approximate.

Other Industries in Birmingham

Accommodation and Food Services 43.8 Information 50.3 Real Estate and Rental and Leasing 51.5 Retail Trade 51.8 Other Services 66.8 Finance and Insurance 67.1

Construction in Other Alabama Metros

Gadsden 14.3 #3/342 Anniston-Oxford 24.0 #15/342 Tuscaloosa 26.6 #24/342 Dothan 27.3 #26/342 Montgomery 28.7 #32/342 Auburn-Opelika 31.5 #47/342 Huntsville 32.5 #56/342 Florence-Muscle Shoals 41.5 #118/342 Daphne-Fairhope-Foley 42.8 #127/342 Decatur 45.4 #149/342

+ 1 more metros. View all in Alabama →

Construction Metros With Similar Conditions

Metros within 5 points of Birmingham's 52.6 score. Useful when comparing markets with comparable entry profiles.

Topeka, KS 52.6 #220/342 Coeur d'Alene, ID 52.6 #219/342 Reno, NV 52.8 #222/342 Charlottesville, VA 52.9 #223/342 Naples-Marco Island, FL 52.9 #224/342 Des Moines-West Des Moines, IA 52.9 #225/342 Los Angeles-Long Beach-Anaheim, CA 52.3 #218/342 Hartford-West Hartford-East Hartford, CT 52.3 #217/342 Bremerton-Silverdale-Port Orchard, WA 53.0 #226/342 North Port-Bradenton-Sarasota, FL 53.0 #227/342

Construction in States Bordering Alabama

State-level entry risk for construction in adjacent states. Use this to weigh cross-border options.

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

Browse Construction in Other States

State-level entry risk reports for construction across all 51 markets, sorted by rank.

About Metro Market Score: A weighted composite of industry concentration (25%), wage competitiveness (25%), wage pressure (20%), and employment growth trend (30%). Lower scores indicate more favorable conditions. For Birmingham's construction sector, the wage competitiveness component (81.3) has the strongest pull on the composite. Metro scores use QCEW data only (no BDS survival data at metro level). Read full methodology →

Data Sources

Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics. MSA-level establishment counts, employment, wages, and location quotients for the Birmingham, AL MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment