NAICS 23

Construction in Sioux Falls, SD

Metro Market Score 49.1 (Challenging), ranked #180 of 342 metros. 1,466 establishments, 12,031 jobs.

Metro Market Score 49.1

Favorable 0-35

Moderate 35-48

Challenging 48-60

Difficult 60+

Challenging

ⓘ Lower is better. Relative to national construction average.

📈Rapid Growth

Sioux Falls ranks in the lower half for construction market conditions, driven by above-average employment growth. With a market score of 49.1, conditions are relatively favorable compared to most metros.

Industry Concentration

81.0

LQ: 1.30

Rank #277 of 342 metros

Wage Competitiveness

59.4

$74,368 avg wage

Growth Trend

↑ 77.2

Employment growth index

Rank #79 of 342 metros

Wage Pressure

35.9

YoY wage change index

1,466 Construction Firms in Sioux Falls

1,466

Establishments

+6.5% YoY

12,031

Total Employment

+5.4% YoY

$74,368

Average Annual Wage

+5.3% YoY

1.30

Location Quotient

Above national avg

Within South Dakota

#2 of 2

construction metros in state

South Dakota state rank

#9 of 51

for construction entry risk

vs State Median

0.0

matches median (49.1)

Sioux Falls vs South Dakota Statewide

How this metro's construction market compares to South Dakota overall. The state ranks #9/51 for entry risk.

Measure	Sioux Falls	SD Statewide
Overall Score	49.1 Challenging	34.7 Moderate
Score Type	Metro Market Score	Entry Risk Score
Rank	#180 of 342 metros	#9 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 Sioux Falls

Retail Trade 46.6

Construction in Other South Dakota Metros

Rapid City 47.7 #170/342

Construction Metros With Similar Conditions

Metros within 5 points of Sioux Falls's 49.1 score. Useful when comparing markets with comparable entry profiles.

Milwaukee-Waukesha, WI 49.1 #179/342 Lake Charles, LA 49.1 #181/342 Jacksonville, FL 49.2 #182/342 Fayetteville, NC 49.2 #183/342 Sebring, FL 49.2 #184/342 Davenport-Moline-Rock Island, IA 48.8 #178/342 Helena, MT 48.8 #177/342 San Antonio-New Braunfels, TX 49.4 #185/342 Lexington-Fayette, KY 49.6 #186/342 Champaign-Urbana, IL 49.7 #187/342

Construction in States Bordering South Dakota

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

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

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 Sioux Falls's construction sector, the industry concentration component (81.0) 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 Sioux Falls, SD-MN MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment