NAICS 23

Construction in Merced, CA

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

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

Within California

#1 of 25

construction metros in state

California state rank

#32 of 51

for construction entry risk

vs State Median

-27.4

better than median (57.5)

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

Information 16.0 Healthcare and Social Assistance 17.5 Administrative and Support Services 19.7 Professional, Scientific, and Technical Services 29.9 Finance and Insurance 34.4 Real Estate and Rental and Leasing 38.3 Other Services 43.0 Retail Trade 56.2 Accommodation and Food Services 64.8

Construction in Other California Metros

El Centro 31.0 #45/342 Salinas 31.6 #50/342 Fresno 37.4 #80/342 Visalia 38.9 #96/342 Santa Maria-Santa Barbara 39.1 #97/342 Hanford-Corcoran 39.7 #106/342 Stockton-Lodi 46.4 #161/342 Santa Cruz-Watsonville 47.5 #168/342 Modesto 48.2 #174/342 Redding 50.9 #205/342

+ 14 more metros. View all in California →

Construction Metros With Similar Conditions

Metros within 5 points of Merced's 30.0 score. Useful when comparing markets with comparable entry profiles.

Iowa City, IA 29.9 #41/342 Greenville, NC 29.9 #40/342 Altoona, PA 29.8 #39/342 Hammond, LA 29.7 #38/342 Muncie, IN 29.5 #37/342 Laredo, TX 29.5 #36/342 Wausau, WI 30.7 #43/342 Hattiesburg, MS 29.3 #35/342 Columbia, SC 30.8 #44/342 Lawrence, KS 29.3 #34/342

Construction in States Bordering California

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

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

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 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

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

Data period: 2024. Last updated: April 2026.

Metro Market Assessment