NAICS 23

Construction in Michigan: 2026 Market Risk Report

Entry risk 28.0 (Low), ranked #2 of 51 states. 23,664 establishments, 195,782 jobs.

Entry Risk Assessment

Entry Risk Score 28.0
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Low Risk

ⓘ Lower is better. Relative to national construction average.

⛔High Barrier to Entry🛡️Stable Market

Michigan exhibits structural stability in construction, with volatility at 12.9 and firm retention ranking in the top 5. These metrics suggest lower cyclical risk compared to the national baseline.

5-Year Firm Retention
94.1%
Percentile within industry
Rank #4 of 51 states
Growth Momentum
27.6
Scale of 0-100
Rank #27 of 51 states
Establishment Density
6.9
vs. national average
Rank #6 of 51 states
Market Volatility
12.9
Lower is more stable
Wage Pressure Index
57.5
Labor cost pressure

23,664 Establishments in Michigan

23,664
Establishments
-6.9% YoY
195,782
Total Employment
+3.6% YoY
$81,756
Average Annual Wage
+5.6% YoY

Michigan vs National Construction Average

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

Metric MI National Difference
Entry Risk Score 28.0 44.2 -16.2
5-Year Retention 94.1% 51.0% +43.1
Growth Momentum 27.6 30.9 -3.3
Market Volatility 12.9 20.9 -8.0
Establishment Density 6.9 24.6 -17.7
Wage Pressure 57.5 57.1 +0.4

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

Michigan Ranks #2 of 51 for Construction

Michigan ranks #2 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 You 28.0 low
#3 Pennsylvania 28.4 low
#4 Alabama 30.3 moderate
#5 Nebraska 32.5 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 Michigan stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How Michigan's construction market compares to bordering states.

Wisconsin 25.1 #1/51 Indiana 35.0 #11/51 Ohio 41.7 #24/51

Other Industries in Michigan

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 →