NAICS 23

Construction in Arizona: 2026 Market Risk Report

Entry risk 38.6 (Moderate), ranked #16 of 51 states. 18,417 establishments, 226,684 jobs.

Entry Risk Assessment

Entry Risk Score 38.6
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Moderate

ⓘ Lower is better. Relative to national construction average.

⛔High Barrier to Entry

The construction sector in Arizona is tracking close to the U.S. baseline, with no extreme signals in volatility, saturation, or wage pressure. Entry conditions are within the national median range.

5-Year Firm Retention
68.6%
Percentile within industry
Rank #17 of 51 states
Growth Momentum
↑ 54.0
Scale of 0-100
Rank #6 of 51 states
Establishment Density
11.1
vs. national average
Rank #14 of 51 states
Market Volatility
36.8
Lower is more stable
Wage Pressure Index
60.0
Labor cost pressure

18,417 Establishments in Arizona

18,417
Establishments
+4.7% YoY
226,684
Total Employment
+6.4% YoY
$79,419
Average Annual Wage
+5.8% YoY

Arizona vs National Construction Average

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

Metric AZ National Difference
Entry Risk Score 38.6 44.2 -5.6
5-Year Retention 68.6% 51.0% +17.6
Growth Momentum 54.0 30.9 +23.1
Market Volatility 36.8 20.9 +15.9
Establishment Density 11.1 24.6 -13.5
Wage Pressure 60.0 57.1 +2.9

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

Arizona Ranks #16 of 51 for Construction

Arizona ranks #16 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 30.3 moderate
#5 Nebraska 32.5 moderate
#16 Arizona You 38.6 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 Arizona stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How Arizona's construction market compares to bordering states.

Nevada 39.8 #20/51 Utah 40.1 #22/51 New Mexico 47.4 #31/51 California 47.8 #32/51 Colorado 53.2 #40/51

Other Industries in Arizona

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 →