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Economic Impact of Wisconsin Construction Industry Estimated at $50.3B
MADISON, WI — A recent survey conducted in partnership between the Associated General Contractors (AGC) of Wisconsin and the Leeds School of Business at the University of Colorado Boulder found that the economic impact of Wisconsin's Construction industry totaled an estimated $50.3 billion in economic output and contributed $27.2 billion to the state's GDP.
The construction industry in the state of Wisconsin helps drive economic growth and provides many jobs throughout the state. The industry directly produced $11 billion in real GDP in 2019, accounting for 3.6 percent of total state GDP. Real GDP was 13.9 percent higher than in 2009 at the height of the Great Recession, and has grown at a 10-year compound annual growth rate (CAGR) of 1.3 percent. Employment in the industry increased 1.7 percent to 186,792 in 2019, accounting for 5 percent of total employment in the state, and average annual wages in the industry were $64,778 in 2019, compared to the state average of $51,052 for all industries and the national construction industry average of $65,432.
The labor and capital intensiveness of construction projects translate to local expenditures, primarily on labor, as well as on design, engineering, and other local goods and services. As such, spending permeates into other sectors in the economy, producing a multiplied economic impact throughout the state's economy. The economic impact of Wisconsin's construction industry totaled an estimated $50.3 billion in economic output and contributed $27.2 billion to the state's GDP. The industry also supported an estimated 331,013 jobs over the year and contributed $19.3 billion in labor income.
The economic impact of the construction industry has the following multiplier effects within the state of Wisconsin:
Western Builder TrendsThe construction industry in the state of Wisconsin helps drive economic growth and provides many jobs throughout the state. The industry directly produced $11 billion in real GDP in 2019, accounting for 3.6 percent of total state GDP. Real GDP was 13.9 percent higher than in 2009 at the height of the Great Recession, and has grown at a 10-year compound annual growth rate (CAGR) of 1.3 percent. Employment in the industry increased 1.7 percent to 186,792 in 2019, accounting for 5 percent of total employment in the state, and average annual wages in the industry were $64,778 in 2019, compared to the state average of $51,052 for all industries and the national construction industry average of $65,432.
The labor and capital intensiveness of construction projects translate to local expenditures, primarily on labor, as well as on design, engineering, and other local goods and services. As such, spending permeates into other sectors in the economy, producing a multiplied economic impact throughout the state's economy. The economic impact of Wisconsin's construction industry totaled an estimated $50.3 billion in economic output and contributed $27.2 billion to the state's GDP. The industry also supported an estimated 331,013 jobs over the year and contributed $19.3 billion in labor income.
The economic impact of the construction industry has the following multiplier effects within the state of Wisconsin:
- Every $1 spent directly within the construction industry produces an overall economic impact of approximately $1.81.
- Every $1 million spent within the construction industry supports approximately 12 jobs on average over the year across the state economy. Approximately seven of these jobs are within the construction industry and five are within other sectors of the economy.
- Every $1 million spent within the construction industry generates almost $692,000 in labor income throughout the state. Approximately $58,200 in labor income is generated per job created.
