New Construction Sector Analysis Highlights Record Growth

Montana’s construction industry continues to surge, driving economic growth, creating thousands of high-paying jobs, and fueling demand for skilled workers across the state, according to a new analysis released by the Montana Department of Labor & Industry (DLI).

The report, part of DLI’s 406 JOBS High Demand Sector Analysis series, details rapid expansion in the Construction Trades sector and underscores the need for continued investment in workforce training to meet employer demand.

“The Construction Trades sector has truly emerged as a leading engine of Montana’s continued economic expansion,” said Labor & Industry Commissioner Sarah Swanson. “Today’s analysis underscores the urgency of continued investment to grow and upskill our labor force to meet employers’ needs across the state. Construction Trades are good-paying, family-sustaining jobs and we are undersupplying the demand in every region of Montana. This report is a call to action to elevate the role of skilled trades and expand access to training programs for all Montanans.”

According to the report, construction supported more than 39,000 jobs statewide in 2024, making it Montana’s fifth-largest employing industry and accounting for roughly 8 percent of total employment. Since 2019, construction output has grown at an annual rate of 3.7 percent — the fourth-fastest growth rate among all states.

In 2024, construction was the single largest contributor to Montana’s economic growth, with inflation-adjusted production increasing by 7 percent over the year.

The sector has also led job creation, adding more than 7,000 jobs since 2019 — more than any other industry in the state during that period. Construction wages continue to outpace the statewide average, with average annual pay reaching $71,250 in 2024, compared to $60,037 across all industries. Heavy and civil engineering construction reported the highest wages, averaging about $87,020 annually, while all major construction subsectors exceeded the statewide wage average.

Looking ahead, Montana’s construction industry is projected to generate more than 3,700 job openings annually over the next decade. Most of those openings are expected to result from retirements, turnover, and replacement needs rather than new growth. More than 60 percent of projected openings will be concentrated in just 10 occupations, including construction laborers, carpenters, electricians, plumbers, HVAC mechanics, equipment operators, and support roles such as office and bookkeeping clerks.

“Most of these chronic labor shortages are in occupations that do not require a college degree,” Swanson said. “As a part of the 406 JOBS initiative, Montana is committed to growing direct-to-career pathways such as Registered Apprenticeships, industry-recognized credentials, and structured, employer-led training initiatives.”

The report highlights recent progress in expanding workforce pathways. Earlier this week, DLI certified Build Montana — an industry-led partnership involving the Montana Contractors Association, Montana Equipment Dealers Association, individual employers, and public high schools — as a pre-apprenticeship program. The certification gives employers greater confidence in the skills students acquire and streamlines entry into Registered Apprenticeship programs after graduation.

Under the 406 JOBS initiative, direct employer involvement in shaping education and training programs is a key priority aimed at better aligning student preparation with workforce needs.

Workforce development and expanded access to training remain central goals for Gov. Greg Gianforte’s administration. Last year, the governor launched the 406 JOBS initiative through Executive Order 5-2025 to better coordinate government resources in support of workers and employers. The initiative outlines 12 priorities across Montana’s workforce system, focusing on innovation, reducing regulatory barriers, and strengthening collaboration between public and private sectors.

Key efforts include expanding Registered Apprenticeship pathways, preparing workers for advancements in artificial intelligence and automation, and building local sector partnerships in high-demand industries like construction.

By BSB Staff