NAICS 23

Construction in Merced, CA

Metro Market Score 30.0 (Favorable), ranked #42 of 342 metros. 445 establishments, 3,358 jobs.

Metro Market Assessment

Metro Market Score 30.0
Favorable 0-35
Moderate 35-48
Challenging 48-60
Difficult 60+
Favorable

Lower is better. Relative to national construction average.

Merced has a relatively low concentration of construction firms (index: 17.3) paired with positive employment growth. This suggests an underpenetrated market where demand may outpace current supply.

Industry Concentration
17.3
LQ: 0.75
Rank #59 of 342 metros
Wage Competitiveness
12.0
$61,299 avg wage
Growth Trend
50.3
Employment growth index
Rank #171 of 342 metros
Wage Pressure
39.1
YoY wage change index

445 Construction Firms in Merced

445
Establishments
+3.7% YoY
3,358
Total Employment
+1.9% YoY
$61,299
Average Annual Wage
+6.6% YoY
0.75
Location Quotient
Below national avg

Merced vs California Statewide

How this metro's construction market compares to California overall. The state ranks #32/51 for entry risk.

Measure Merced CA Statewide
Overall Score 30.0 Favorable 47.8 Elevated
Score Type Metro Market Score Entry Risk Score
Rank #42 of 342 metros #32 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 Merced

Construction in Other California Metros

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 Merced's construction sector, the employment growth component (49.7) 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

Data period: 2024. Last updated: April 2026.