From Detroit's soaring skyline to quiet Upper Peninsula highways, Michigan's construction industry is booming with 166,200 hardhats strong, supported by over $28 billion in annual spending and a workforce that is growing, diversifying, and building a resilient future for the Great Lakes State.
Key Takeaways
- In 2022, Michigan's construction industry employed 166,200 workers, representing 3.7% of total state employment
- Construction employment in Michigan grew by 4.1% year-over-year in 2023, adding 6,800 jobs primarily in nonresidential building construction
- As of Q4 2023, the Detroit-Warren-Dearborn metro area accounted for 45% of Michigan's total construction workforce with 74,900 employees
- Average hourly wage for construction laborers in Michigan was $22.47 in 2023, 8% above national average
- Carpenters in Michigan earned median annual wage of $54,200 in 2022, with top 10% over $78,900
- Operating engineers hourly pay averaged $28.65 in Michigan 2023, including fringe benefits up to $12/hour
- Total construction payroll in Michigan reached $12.4 billion in 2022
- Michigan construction spending totaled $28.7 billion in 2023, up 6.2% from 2022
- Nonresidential construction value in MI: $14.2 billion in FY2023, led by manufacturing facilities
- Building permits issued: 12,450 single-family homes in Michigan 2023
- Total building permit authorizations $15.6 billion value MI 2023
- Residential permits: 22,100 units authorized MI 2023, down 5% YoY
- Total fatal injuries in MI construction: 28 in 2022, rate 16.8 per 100k workers
- Nonfatal injury rate 2.1 cases per 100 workers MI construction 2022
- Falls from height caused 42% of MI construction fatalities 2018-2022 average 12/year
Michigan's construction industry is growing robustly with an aging and diversifying workforce.
Construction Spending and Value
- Total construction payroll in Michigan reached $12.4 billion in 2022
- Michigan construction spending totaled $28.7 billion in 2023, up 6.2% from 2022
- Nonresidential construction value in MI: $14.2 billion in FY2023, led by manufacturing facilities
- Residential construction permits valued at $9.8 billion in Michigan 2023
- Public construction spending in MI increased to $7.5 billion in 2023, 9% YoY growth
- Heavy/civil engineering projects valued $4.1 billion in Michigan 2022
- Office building construction spending $1.2 billion MI 2023, down 3% from peak
- Manufacturing construction boom: $5.6 billion invested in MI 2023
- Highway construction contracts awarded $2.8 billion by MDOT in FY2023
- Single-family home construction value $6.4 billion Michigan 2023
- Educational facilities construction $1.9 billion MI 2022-2023
- Multifamily residential spending $2.1 billion up 12% in MI 2023
- Healthcare construction value $1.4 billion Michigan FY2023
- Retail commercial construction $900 million MI 2023
- Water/sewer infrastructure spending $1.1 billion MI 2023 via federal funds
- Hotel construction value $450 million Michigan 2022
- Renovation/remodeling market $15.3 billion MI 2023 estimate
- Industrial warehouse construction $2.7 billion MI 2023
- Bridge reconstruction spending $850 million by MDOT 2023
- Airport construction projects $650 million MI 2023
- Data center construction value $300 million emerging in MI 2023
- School bond-funded construction $1.2 billion MI 2022-2023
- Private nonresidential spending $10.5 billion MI 2023
- State/local government construction $5.8 billion MI FY2023
- Federal construction contracts $1.3 billion MI 2023
- Green building construction value $3.2 billion MI 2023, 11% of total
Construction Spending and Value Interpretation
Michigan’s construction industry is quite literally rebuilding the state from the factory floor up, with a side of highways and homes, proving that while office work might be optional, someone still has to build all the places we argue about returning to.
Employment Statistics
- In 2022, Michigan's construction industry employed 166,200 workers, representing 3.7% of total state employment
- Construction employment in Michigan grew by 4.1% year-over-year in 2023, adding 6,800 jobs primarily in nonresidential building construction
- As of Q4 2023, the Detroit-Warren-Dearborn metro area accounted for 45% of Michigan's total construction workforce with 74,900 employees
- Michigan construction sector had a labor force participation rate of 62.5% for workers aged 25-54 in 2022, higher than the national average of 60.8%
- Women comprised 10.2% of Michigan's construction workforce in 2022, up from 9.1% in 2018, totaling approximately 16,900 female workers
- Hispanic or Latino workers made up 12.4% of Michigan construction employees in 2021, concentrated in Grand Rapids and Lansing areas
- Union membership in Michigan construction stood at 22.3% in 2022, compared to 9.9% non-union, affecting 37,000 unionized workers
- Average weekly hours worked by Michigan construction workers were 39.2 in 2023, with overtime averaging 4.1 hours per week
- Construction apprenticeships in Michigan numbered 5,200 active participants in FY2022, supported by Michigan Works! programs
- The unemployment rate in Michigan construction was 4.7% in December 2023, below the state average of 4.1%
- Self-employed construction workers in Michigan totaled 28,400 in 2022, representing 17% of the sector's workforce
- Michigan construction jobs openings reached 12,300 in Q3 2023, with a job openings rate of 7.2 per 100 workers
- Veterans comprised 8.5% of Michigan's construction workforce in 2021, or about 14,100 individuals
- Construction employment in Michigan's Upper Peninsula was 4,200 in 2022, down 2% from 2021 due to seasonal factors
- Part-time construction workers in Michigan averaged 11,500 monthly in 2023, mostly in finishing trades
- Michigan construction industry added 2,100 jobs in heavy and civil engineering construction subsector in 2023
- Youth employment (16-24) in Michigan construction was 15,300 in summer 2023, with 68% retention rate post-season
- Disability employment rate in construction reached 4.2% in Michigan 2022, equating to 7,000 workers
- Construction staffing agencies placed 9,800 temporary workers in Michigan in 2022
- Michigan construction workforce aged 55+ comprised 28.4% or 47,200 workers in 2023, indicating aging workforce concerns
- Entry-level construction hires (under 1 year experience) numbered 14,200 in Michigan 2022
- Construction employment in Flint metro area was 5,600 in 2023, up 5% YoY
- Multi-generational family businesses employed 32% of Michigan construction workers in 2021 survey
- Remote/hybrid roles in construction management in Michigan grew to 1,200 positions in 2023
- Construction workers with associate degrees or higher: 18.7% or 31,100 in Michigan 2022
- Seasonal layoffs affected 8,900 Michigan construction workers in winter 2022-2023
- Michigan construction industry had 3,200 job separations per month average in 2023
- Foreign-born workers: 14.6% of Michigan construction force, or 24,300 in 2022
- Construction superintendent roles in Michigan: 2,900 employed in 2023
- Total construction establishments in Michigan: 12,450 in Q1 2024
Employment Statistics Interpretation
While building Michigan's future, the state's construction industry is grappling with an aging workforce and fierce competition for talent, yet it's showing encouraging signs of resilience and growth by slowly becoming more diverse, increasingly unionized, and strategically concentrated in Detroit's metro area.
Permits and Projects
- Building permits issued: 12,450 single-family homes in Michigan 2023
- Total building permit authorizations $15.6 billion value MI 2023
- Residential permits: 22,100 units authorized MI 2023, down 5% YoY
- Nonresidential permits 1,850 projects MI 2023 valued $4.2 billion
- MDOT awarded 1,200 road projects permits in 2023 totaling 2,500 miles resurfaced
- Commercial building permits: 420 in Detroit MSA 2023
- Multi-family permits: 4,200 units MI 2023, concentrated in Ann Arbor
- Demolition permits issued 8,500 structures MI 2023
- Solar installation permits 2,100 residential MI 2023, up 25%
- New manufacturing plant permits 15 facilities MI 2023
- Hospital expansion permits 12 projects $800M value MI 2023
- School construction permits 45 districts MI 2023 $650M
- Warehouse/distribution center permits 28 buildings 5.2M sq ft MI 2023
- Bridge permits/repairs 320 structures MDOT 2023
- Wind farm project permits 3 new sites 450MW MI 2023
- Retail strip mall permits 65 MI 2023 $450M value
- Water treatment plant upgrades 18 permits MI 2023 $1.2B
- Hotel permits 22 new builds 2,100 rooms MI 2023
- EV charging station permits 1,500 sites MI 2023 via NEVI
- Airport runway projects 8 permits $200M MI 2023
- Historic renovation permits 950 MI 2023 tax credits
- Data center permits 4 facilities 1.2M sq ft MI 2023
- Park/trail construction permits 120 MI state parks 2023
- Stadium/arena upgrades 5 major permits $750M MI 2023
Permits and Projects Interpretation
While Michigan's residential sector took a slight breather last year, the state spent 2023 stubbornly and diversely rebuilding its bones, from bridges to batteries and nearly everything in between.
Safety and Industry Trends
- Total fatal injuries in MI construction: 28 in 2022, rate 16.8 per 100k workers
- Nonfatal injury rate 2.1 cases per 100 workers MI construction 2022
- Falls from height caused 42% of MI construction fatalities 2018-2022 average 12/year
- OSHA citations issued to MI construction firms: 1,450 in FY2023, fines $4.2M total
- Heat-related illnesses reported 320 cases MI construction summer 2023
- Crane incidents: 5 serious in MI 2022, leading to MIOSHA training mandate
- Silica exposure violations 280 MI construction 2023
- Trench collapse fatalities 3 in MI 2022, rate improved 20% with shoring regs
- PPE compliance rate 88% in MI construction audits 2023
- Musculoskeletal disorders 45% of nonfatal injuries MI construction 2022
- Electrical incidents 18% of fatalities MI construction 2020-2022
- Drug/alcohol testing positive rate 4.2% MI construction 2023
- Safety training hours per worker averaged 24 annually MI 2023
- Vehicle/backover incidents 22 injuries MI construction 2022
- Lead exposure cases 150 MI construction abatement projects 2023
- MIOSHA consultations conducted 450 for construction firms 2023
- Fatigue-related accidents 12% of incidents MI construction 2022
- Scaffolding failures 7 incidents MI 2023, zero fatalities due to inspections
- Hearing loss claims 210 MI construction workers 2022
- Wildfire smoke exposure days 15 in MI construction 2023 Upper Peninsula
- Lost workday cases rate 1.2 per 100 MI construction 2023 improved
- Robotics/adoption rate 18% MI construction firms 2023 survey
- Prefab modular construction share 22% of projects MI 2023
- BIM usage 65% of MI contractors 2023, reducing errors 25%
- Sustainability certifications: 420 LEED projects MI cumulative 2023
- Labor shortage projected 15,000 workers by 2025 MI construction
- Digital twin tech adoption 12% MI large projects 2023
- EV fleet in MI construction: 8% of vehicles 2023
Safety and Industry Trends Interpretation
While Michigan's construction industry is building a smarter future with tech and green designs, the sobering truth remains that we are still nailing our workers to a cross of preventable dangers, from falls and trenches to silica and strain, proving that no innovation can replace the fundamental need for relentless safety.
Wage and Compensation
- Average hourly wage for construction laborers in Michigan was $22.47 in 2023, 8% above national average
- Carpenters in Michigan earned median annual wage of $54,200 in 2022, with top 10% over $78,900
- Operating engineers hourly pay averaged $28.65 in Michigan 2023, including fringe benefits up to $12/hour
- Electricians median wage $62,500 annually in Michigan 2022, 12% higher than state median wage
- Construction managers in Detroit MSA earned $105,300 mean annual in 2023
- Plumbers and pipefitters: $59,800 median wage Michigan 2022, with overtime premiums adding 15%
- Benefits package for union construction workers averaged 35% of base wage in Michigan 2023
- Heavy equipment operators wage growth: 5.2% YoY in Michigan to $27.40/hour 2023
- Ironworkers mean hourly $32.10 in Michigan 2022, highest in structural steel subsector
- Average construction supervisor salary $92,400 in Grand Rapids 2023
- Sheet metal workers: $52,100 median Michigan 2022, with prevailing wage rates up to $45/hour
- Total compensation for first-line supervisors: $68.50/hour equiv. including benefits MI 2023
- Wage disparity: Male vs female construction workers 18% gap in Michigan 2022 avg $24.50 vs $20.10/hour
- Overtime pay as % of total earnings: 12% for MI construction in 2023
- Roofer median wage $47,900 Michigan 2022, seasonal adjustments add 10% premium
- Cost estimators annual mean $72,600 in Lansing MSA 2023
- Painter wages averaged $22.80/hour MI 2023, 4% increase from 2022
- Health insurance coverage: 78% of full-time construction workers MI 2022, avg premium $6,200/year
- Drywall installers: $51,200 median wage Michigan 2023
- Pension contributions averaged 8.5% of wages for union trades MI 2022
- Highway maintenance workers $24.10/hour mean MI 2023
- Construction laborers total pay with incentives $48,700 annually MI 2022
- Surveyors wage $64,300 median MI 2023
- Bonus pay averaged $2,800/year for MI construction supervisors 2023
- Glaziers $50,400 median wage Michigan 2022
Wage and Compensation Interpretation
Michigan's construction industry proves that while it may not be easy to build things, the state is determined to build some very competitive paychecks, albeit with a stubborn and glaring crack in the foundation when it comes to gender equity.
Sources & References
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