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Construction in California: 2026 Market Risk Report

Entry risk 47.8 (Elevated), ranked #32 of 51 states. 93,997 establishments, 913,470 jobs.

Entry Risk Assessment

Entry Risk Score 47.8
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Elevated

ⓘ Lower is better. Relative to national construction average.

California's construction sector shows high establishment density (top 10 nationally) paired with firm retention in the bottom 10. This combination indicates elevated competitive pressure on new market entrants.

5-Year Firm Retention
19.6%
Percentile within industry
Rank #42 of 51 states
Growth Momentum
43.8
Scale of 0-100
Rank #12 of 51 states
Establishment Density
7.5
vs. national average
Rank #8 of 51 states
Market Volatility
25.9
Lower is more stable
Wage Pressure Index
40.0
Labor cost pressure

93,997 Establishments in California

93,997
Establishments
+1.1% YoY
913,470
Total Employment
+0.2% YoY
$89,462
Average Annual Wage
+4.2% YoY

California vs National Construction Average

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

Metric CA National Difference
Entry Risk Score 47.8 44.2 +3.6
5-Year Retention 19.6% 51.0% -31.4
Growth Momentum 43.8 30.9 +12.9
Market Volatility 25.9 20.9 +5.0
Establishment Density 7.5 24.6 -17.1
Wage Pressure 40.0 57.1 -17.1

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

California Ranks #32 of 51 for Construction

California ranks #32 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
#32 California You 47.8 elevated
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 California stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How California's construction market compares to bordering states.

Arizona 38.6 #16/51 Nevada 39.8 #20/51 Oregon 54.8 #44/51

Other Industries in California

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 →