NAICS 23

Construction in South Dakota: 2026 Market Risk Report

Entry risk 34.7 (Moderate), ranked #9 of 51 states. 4,405 establishments, 29,227 jobs.

Entry Risk Assessment

Entry Risk Score 34.7
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Moderate

ⓘ Lower is better. Relative to national construction average.

🛡️Stable Market💎Hidden Gem

South Dakota exhibits structural stability in construction, with volatility at 10.7 and firm retention ranking in the top 10. These metrics suggest lower cyclical risk compared to the national baseline.

5-Year Firm Retention
90.2%
Percentile within industry
Rank #6 of 51 states
Growth Momentum
29.3
Scale of 0-100
Rank #26 of 51 states
Establishment Density
54.8
vs. national average
Rank #47 of 51 states
Market Volatility
10.7
Lower is more stable
Wage Pressure Index
65.0
Labor cost pressure

4,405 Establishments in South Dakota

4,405
Establishments
+1.7% YoY
29,227
Total Employment
+3.8% YoY
$67,917
Average Annual Wage
+6.2% YoY

South Dakota vs National Construction Average

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

Metric SD National Difference
Entry Risk Score 34.7 44.2 -9.5
5-Year Retention 90.2% 51.0% +39.2
Growth Momentum 29.3 30.9 -1.6
Market Volatility 10.7 20.9 -10.2
Establishment Density 54.8 24.6 +30.2
Wage Pressure 65.0 57.1 +7.9

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

South Dakota Ranks #9 of 51 for Construction

South Dakota ranks #9 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
#9 South Dakota You 34.7 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

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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 South Dakota stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How South Dakota's construction market compares to bordering states.

Nebraska 32.5 #5/51 Iowa 34.3 #7/51 Minnesota 37.3 #14/51 Montana 45.0 #28/51 North Dakota 58.3 #47/51 Wyoming 59.3 #49/51

Other Industries in South Dakota

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 →