LITTLE ROCK, Ark. — Arkansas has been named the second-best state in the nation for construction industry strength, according to the latest “Building America: The Merit Shop Scorecard” from Associated Builders and Contractors (ABC).

Climbing one spot from its No. 3 position last year, Arkansas now trails only Wisconsin in the 2024 national ranking. The annual scorecard evaluates all 50 states on key areas like workforce development, career and technical education (CTE), job growth, right-to-work laws, and open competition for public construction projects.

ABC highlighted that Arkansas earned top “A” grades in six of the seven categories — more than any other state — signaling strong momentum for the state’s construction industry.

In its announcement, ABC praised Arkansas for its commitment to expanding a skilled workforce and maintaining a fair, open market for public construction projects. The state recorded a 6.1% growth rate in construction jobs last year, outpacing national averages.

"Arkansas has excelled at all aspects of fostering and educating a skilled workforce, boasting a 6.1% growth rate in construction industry jobs and delivering outstanding results in CTE," the report noted. "Arkansas also maintains a fair and open public construction market, allowing the full breadth of the state’s construction workforce to pursue projects.”

ABC Vice President Ben Brubeck said Arkansas is part of a leading group of states driving a strong construction climate nationwide.

"Policies and processes that protect free enterprise, promote economic growth, reduce regulatory burdens and expand workforce development create the conditions to welcome all of the U.S. construction industry to rebuild America’s infrastructure," Brubeck said. "States like Wisconsin, Arkansas, Kentucky, West Virginia and Florida set the standard in favorable conditions for the construction industry, and its workforce, to thrive. Hard-working taxpayers are best served by a regulatory environment that creates a level playing field for all contractors to build America with fewer obstacles.”

Industry Impact

‍Arkansas’s high ranking means it continues to attract national construction firms and investment. The state’s right-to-work status, open competition laws, and robust CTE programs help contractors expand their workforce pipelines.

Education Focus

‍Arkansas’s focus on trade education through partnerships with technical colleges and apprenticeship programs has been a major factor in its consistent rise on the scorecard.

Future Outlook

‍Industry leaders expect Arkansas to maintain momentum as federal infrastructure dollars flow to roads, bridges, and broadband projects — all fueling demand for skilled labor.

Broader Trend

‍The scorecard results align with a trend of southern and midwestern states gaining a larger share of construction market growth, as business-friendly policies and workforce initiatives attract both union and merit shop contractors.‍

Next Steps

‍Construction leaders in Arkansas say they will keep pushing for continued CTE funding, streamlined permitting processes, and new partnerships with high schools to prepare the next generation of skilled workers.

Originally reported by AMP Staff in Arkansas Money and Politics.