WASHINGTON, D.C., Dec. 7, 2023 — Wisconsin is up to 4th in state rankings for construction business climate, according to the 2023 Associated Builders and Contractors’ Merit Shop Scorecard. Only Georgia (1), Florida (2), and Arkansas (3) are ahead of Wisconsin with Indiana (5) rounding out the top five. In 2022, Wisconsin dropped to 11 after ranking 5 in 2021.
The scorecard, released yearly since 2015, ranks all 50 states and the District of Columbia based on state policies and programs that strengthen career pathways in construction, encourage workforce development and advocate for fair and open competition on taxpayer-funded construction projects. The scorecard also identifies states where economic improvements are needed. The rankings are based on seven criteria: project labor agreements, prevailing wage laws, right-to-work laws, public-private partnerships, workforce development, career and technical education and job growth rate.
“Commonsense conditions and policies that encourage competition, are vital to safe, quality construction that is built efficiently and effectively for taxpayers and businesses,” said John Mielke, ABC of Wisconsin president. “It’s sometimes hard to get Republicans and Democrats to agree on what to order for lunch, but in Wisconsin, both parties know the importance of bridging the construction skills gap; an investment in everyone’s future and a big factor in Wisconsin’s return to the higher ranking,” Mielke said.
Mielke is referring to Wisconsin’s grade in Workforce Development, which jumped from a “D” in 2022 to a “B” in 2023. The Badger State’s grade for Career and Technical Education also rose from a “B” to an “A.” However, Job Growth Rate dipped from a “B” to a “C.”
Overall Rank: 4
Project Labor Agreement Policy: A
Prevailing Wage Mandates: A
Right to Work: A
Public-Private Partnerships: B
Workforce Development Incentives: B
Career and Technical Education: A
Job Growth Rate: C
Wisconsin Past Rankings
2023 — 4th
2022 — 11th
2021 — 5th
2020 — 5th
2019 — 8th
2018 — 12th
2017 — 15th
2016 — 21st
2015 — 26th
The top states have strong workforce development systems. Wisconsin has invested in adult registered apprenticeship, youth apprenticeship and the return of tech ed into high schools. States like Wisconsin are also assisted by states taking steps backwards on the issues, particularly right to work, prevailing wage and project labor agreements.
Notable drops in the 2023 rankings include neighboring Michigan, which fell eight spots this year after falling nine spots the previous year. The state’s legislature unfortunately repealed right to work this year, which will take effect in 2024, stripping the right from workers to decide whether or not to join a union as a condition of their employment. Also, local lawmakers codified a prevailing wage executive order into law in 2023, taking effect in 2024. Repeal of the ABC-supported Fair and Open Competition Act is also in sights of the legislature in 2024. Meanwhile, Iowa ranks 6, Minnesota ranks 37, and Illinois ranks 44.
The bottom five states, in ranking order, included Hawaii, Rhode Island, New York, the District of Columbia and Washington, each receiving poor ratings in creating conditions and policies for merit shop contractors to thrive.
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