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Labor Market Information Center

2022 Annual Report

Quarterly Census of Employment and Wages

Construction Supersector

The Construction supersector is made up of one sector, Construction. Businesses within this supersector erect buildings and other structures, perform alterations, installation, maintenance and repairs.

Construction

NAICS Sector 23

The Construction sector is divided into three subsectors. The Construction of Buildings (NAICS 236) subsector is defined with establishments that perform new work, additions, alterations, maintenance and repairs. Work performed in the Heavy and Civil Engineering Construction (NAICS 237) subsector includes establishments whose primary activity is the construction of entire engineering projects and includes specialty trade contractors whose primary activity is the production of a specific component for such projects. The Specialty Trade Contractors (NAICS 238) subsector is defined as establishments which perform specific activities involved in building construction such as pouring concrete, site preparation, plumbing, painting, etc. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work.

Over the year, the Construction sector an increase of 996 workers or 4%. The number of establishments increased by 155, bringing the total to 4,491 establishments in 2022. The average annual pay for this sector increased by $3,072 or 5.5%, bringing the average annual pay to $58,955 in 2022. In South Dakota, the Construction sector ranked 10th in annual pay among all sectors in 2022. From 2021 to 2022 this industry ranked fifth overall in employment and contained the second highest number of establishments of all sectors.

Annual pay increased in all three subsectors:

• Construction of Buildings increased $4,031 or 7.8%.
• Heavy and Civil Engineering increased by $4,877 or 6.9%.
• Specialty Trade Contractors increased by $2,422 or 4.5%.

The number of establishments increased in two of the three subsectors over the past year, and the overall sector added 155 establishments. The Specialty Trade Contractors subsector added the most establishments with 114, followed by the Construction of Buildings, which added 44 new businesses. The Heavy and Civil Engineering Construction subsector lost three establishments in 2022.

Two of the three subsectors within the Construction sector increased worker levels from 2021. The Specialty Trade Contractors added the most workers with an additional 822 workers or 5.6%, and Construction of Buildings followed, with growth of 222 workers or 3.6%. The Heavy and Civil Engineering Construction subsector decreased 48 workers or 1.1%.

South Dakota’s construction sector continued to show swift growth in 2022. The largest cities in South Dakota are expanding and developing to meet the demand for both residences and commercial needs. According to the City of Sioux Falls, the construction valuation in 2022 totaled $1.93 billion, a record for Sioux Falls. The city’s estimate in construction increased 74.8% from the previous year. In Rapid City, the total construction valuation peaked in 2021, but 2022 was an above average year as well. According to the City of Rapid City, the year-end total construction valuation in 2021 was $393.6 million and $364.6 million in 2022, which are the highest two valuations on record since 2000. Aberdeen showed growth throughout 2022 as well. According to the City of Aberdeen, the city achieved an increase of about $4.3 million or 8% over 2021 in terms of total valuation.

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