While Arizona's skyline is rapidly evolving, the true foundation of its growth is revealed in the powerful statistics driving its construction boom: from adding 12,400 jobs last year alone to its $28.5 billion contribution to the state's GDP, this industry is building far more than just buildings.
Key Takeaways
- In 2023, Arizona's construction industry employed 198,500 workers, representing 5.2% of total state employment
- Arizona construction sector added 12,400 jobs in 2023, a 6.7% year-over-year increase
- Average hourly wage for construction workers in Arizona was $28.45 in Q4 2023, up 4.1% from prior year
- Arizona construction contributed $28.5 billion to GDP in 2023, or 6.8% of state total
- Construction spending in Arizona totaled $42.3 billion in 2023, up 8.2% from 2022
- Residential construction permits in Arizona valued at $15.7 billion in 2023
- 1,247 residential building permits issued in Phoenix in January 2024, up 12% YoY
- Arizona highway construction projects totaled 450 miles under contract in 2023
- 320 new single-family homes started in Tucson MSA in Q1 2024
- 67% of Arizona construction fatalities in 2022 were falls from height averaging 32 feet
- Arizona construction injury rate was 2.8 per 100 workers in 2022, below national 3.2
- 14 construction fatalities in Arizona 2023, 40% involving heavy equipment
- Arizona residential construction saw 45% cost growth due to labor shortages in 2023
- Adoption of modular construction in Arizona rose 35% to 18% of projects in 2023
- BIM usage in Arizona construction firms hit 78% in 2023 surveys
Arizona's construction industry grew significantly in 2023 with robust job and wage gains.
Construction Projects
- 1,247 residential building permits issued in Phoenix in January 2024, up 12% YoY
- Arizona highway construction projects totaled 450 miles under contract in 2023
- 320 new single-family homes started in Tucson MSA in Q1 2024
- Maricopa County approved 15,200 residential permits valued at $4.2B in 2023
- Arizona semiconductor fabs under construction: 5 projects worth $65B as of 2024
- 78 multifamily buildings completed in Arizona in 2023, adding 12,500 units
- I-10 widening project in Arizona: 26 miles completed Phase 1 in 2023 at $500M
- 42 school construction projects in Arizona totaling $1.1B in bonds 2023
- Arizona solar farm constructions: 15 projects, 2.3 GW capacity added 2023
- 1,800 hotel rooms added via 12 new constructions in Arizona 2023
- Loop 303 extension in Phoenix: 17 miles, $1.2B project 60% complete 2024
- 5,400 affordable housing units under construction statewide in 2024
- Arizona water infrastructure projects: 120 upgrades costing $890M in 2023
- 28 data center constructions in Arizona totaling 1.2M sq ft in 2023
- Hospital expansions: 6 projects in Arizona adding 450 beds, $2.1B 2023
- Arizona retail strip mall builds: 14 projects, 450k sq ft in 2023
Construction Projects Interpretation
Arizona's construction industry is currently conducting a full-scale symphony of growth, from the delicate notes of new homes and schools to the thunderous crescendo of semiconductor fabs and highway expansions, all while trying to remember the crucial melody of water infrastructure.
Economic Contributions
- Arizona construction contributed $28.5 billion to GDP in 2023, or 6.8% of state total
- Construction spending in Arizona totaled $42.3 billion in 2023, up 8.2% from 2022
- Residential construction permits in Arizona valued at $15.7 billion in 2023
- Nonresidential construction contracts awarded in Arizona reached $18.9 billion in 2023
- Arizona construction industry generated $2.1 billion in state taxes in FY2023
- Multiplier effect of construction spending in Arizona was 2.8, creating $1.18 indirect jobs per direct job in 2023
- Arizona construction exports of services totaled $450 million in 2022
- Property value added by new Arizona construction was $12.4 billion in 2023
- Arizona construction firms reported $56.7 billion in revenue in 2022 Census
- Investment in Arizona infrastructure construction hit $9.8 billion from federal funds in 2023
- Construction drove 15% of Arizona's private fixed investment at $32.1 billion in 2023
- Arizona construction material costs rose 7.5% contributing $1.2B extra spend in 2023
- Homebuilding in Arizona added $8.9 billion to household wealth in 2023
- Commercial real estate construction in Arizona yielded $3.4B in rents in 2023
- Arizona construction supported 145,000 supply chain jobs in 2023
- Tax incentives boosted Arizona construction investment by $2.3B in 2023
- Arizona construction R&D spending was $210 million in 2022
- Energy-efficient construction saved Arizona $450M in energy costs in 2023
Economic Contributions Interpretation
While Arizona's construction industry lays the literal and financial foundation for the state, adding a staggering $28.5 billion to its GDP, it's also building a pricey future, as a 7.5% jump in material costs alone tacked on an extra $1.2 billion to the bill in 2023.
Employment Statistics
- In 2023, Arizona's construction industry employed 198,500 workers, representing 5.2% of total state employment
- Arizona construction sector added 12,400 jobs in 2023, a 6.7% year-over-year increase
- Average hourly wage for construction workers in Arizona was $28.45 in Q4 2023, up 4.1% from prior year
- 28% of Arizona construction workforce were Hispanic or Latino in 2022
- Construction apprenticeships in Arizona grew by 15% to 4,200 enrollees in 2023
- Women comprised 10.3% of Arizona construction employees in 2023, totaling 20,450 workers
- Arizona had 15,200 construction supervisors in 2023, with median annual salary of $72,100
- Union membership in Arizona construction stood at 12.5% or 24,800 workers in 2022
- 42,300 self-employed construction workers operated in Arizona in 2023
- Construction unemployment rate in Arizona was 4.2% in December 2023, below national average
- Arizona construction payroll reached $12.4 billion in 2023
- 5,600 new construction jobs from infrastructure projects in Maricopa County in 2023
- Arizona's construction labor force participation rate was 68.7% in 2023
- 18,900 construction laborers in Phoenix MSA earned average $42,500 annually in 2023
- Veteran employment in Arizona construction was 7.2% or 14,300 in 2022
- Arizona construction industry turnover rate was 22.4% in 2023
- 3,200 construction managers in Tucson area in 2023
- Overtime hours in Arizona construction averaged 4.2 hours per week in 2023
- 11% of Arizona construction workers held bachelor's degrees in 2022
- Seasonal employment peak in Arizona construction hit 210,000 in summer 2023
Employment Statistics Interpretation
Arizona's construction landscape is not just pouring concrete; it's a high-stakes, high-growth arena where a diverse workforce, from savvy self-starters to skilled supervisors, is hammering out a booming $12.4 billion economy while grappling with a revolving door of talent.
Industry Trends
- Arizona residential construction saw 45% cost growth due to labor shortages in 2023
- Adoption of modular construction in Arizona rose 35% to 18% of projects in 2023
- BIM usage in Arizona construction firms hit 78% in 2023 surveys
- Green building certifications in Arizona: 420 LEED projects completed 2023
- Drone usage for site surveys in Arizona construction up 52% to 1,200 firms in 2023
- Arizona construction labor shortage projected at 25,000 workers by 2025
- Prefab component use in Arizona projects increased 28% saving 15% time in 2023
- AI predictive analytics adopted by 32% of Arizona contractors in 2023
- Arizona construction digital twin implementations: 150 projects in 2023
- Sustainability goals met in 65% of Arizona bids, up from 48% in 2022
- Electric equipment procurement in Arizona construction doubled to $120M in 2023
- Supply chain delays impacted 42% of Arizona projects by avg 3 months in 2023
- Arizona workforce upskilling programs trained 8,200 in tech skills 2023
- Net-zero energy new builds in Arizona: 120 projects certified 2023
- 3D printing used in 22 Arizona housing projects printing 450 units 2023
Industry Trends Interpretation
Arizona's construction industry, squeezed by a painful labor shortage and spiking costs, is frantically trying to build its way out of the crisis by turning to drones, AI, prefab magic, and an army of newly upskilled workers racing toward a greener, more automated future.
Safety Records
- 67% of Arizona construction fatalities in 2022 were falls from height averaging 32 feet
- Arizona construction injury rate was 2.8 per 100 workers in 2022, below national 3.2
- 14 construction fatalities in Arizona 2023, 40% involving heavy equipment
- OSHA citations in Arizona construction: 1,200 in FY2023 totaling $4.5M fines
- Heat-related illnesses in Arizona construction: 320 cases reported 2023
- Arizona mandated silica dust exposure limits cut lung disease by 22% since 2017
- 28% of Arizona construction accidents involved subcontractors in 2022
- Trenching collapses caused 3 fatalities in Arizona construction 2023
- Arizona construction crane incidents: 5 in 2023, all tip-overs
- Safety training hours per Arizona construction worker averaged 24 in 2023
- Electrical hazards led to 12% of Arizona construction injuries in 2022
- Arizona OSHA lost-time incident rate in construction: 1.4 per 200k hours 2023
- 15 scaffold failures reported in Arizona construction sites 2023
- PPE compliance in Arizona construction reached 92% in 2023 audits
- Vehicle strikes caused 18% of Arizona construction deaths 2022-2023
Safety Records Interpretation
While Arizona's construction safety record avoids the national average for injuries, the persistent and deadly trifecta of falls, heavy equipment, and trench collapses shows that beating the average isn't the same as beating the grave risks inherent in building the state.
Sources & References
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