NAICS 23

Construction in Tennessee: 2026 Market Risk Report

Entry risk 34.8 (Moderate), ranked #10 of 51 states. 17,112 establishments, 163,374 jobs.

Entry Risk Assessment

Entry Risk Score 34.8
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Moderate

ⓘ Lower is better. Relative to national construction average.

⛔High Barrier to Entry

The construction sector in Tennessee is tracking close to the U.S. baseline, with no extreme signals in volatility, saturation, or wage pressure. Entry conditions are within the national median range.

5-Year Firm Retention
54.9%
Percentile within industry
Rank #24 of 51 states
Growth Momentum
44.3
Scale of 0-100
Rank #11 of 51 states
Establishment Density
9.3
vs. national average
Rank #10 of 51 states
Market Volatility
5.9
Lower is more stable
Wage Pressure Index
52.5
Labor cost pressure

17,112 Establishments in Tennessee

17,112
Establishments
+6.1% YoY
163,374
Total Employment
+4.6% YoY
$79,546
Average Annual Wage
+5.2% YoY

Tennessee vs National Construction Average

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

Metric TN National Difference
Entry Risk Score 34.8 44.2 -9.4
5-Year Retention 54.9% 51.0% +3.9
Growth Momentum 44.3 30.9 +13.4
Market Volatility 5.9 20.9 -15.0
Establishment Density 9.3 24.6 -15.3
Wage Pressure 52.5 57.1 -4.6

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

Tennessee Ranks #10 of 51 for Construction

Tennessee ranks #10 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
#10 Tennessee You 34.8 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 Tennessee stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How Tennessee's construction market compares to bordering states.

Alabama 30.3 #4/51 Arkansas 34.3 #8/51 North Carolina 38.2 #15/51 Virginia 39.0 #18/51 Kentucky 39.8 #19/51 Georgia 42.1 #25/51 Mississippi 50.8 #36/51 Missouri 54.6 #43/51

Other Industries in Tennessee

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 →