- The first part of an in-depth analysis of the construction industry begins with an overview of its role in the Magnolia State’s lifeblood.
In 2023, construction contributed approximately $4.7 billion to Mississippi’s GDP, representing roughly 3.3 percent of the total GDP. The industry provides substantive employment, with approximately 47,500 workers, as of July 2023, according to the Associated General Contractors (AGC) of America.
The construction industry is poised to grow significantly over the next few years, thanks in part to the $10 billion Amazon Web Services (AWS) projects in Madison County. An estimated 300 to 400 construction workers are on site now. In the next few months, that number is predicted to swell to at least 4,000 to 5,000. Governor Tate Reeves believes construction workers needed to complete two data center campuses will exceed 6,000.
“One of the amazing benefits associated with the announcement of over $20 billion in capital investment over the last four years is the related construction activity that comes with it,” said Bill Cork, executive director of the Mississippi Development Authority. “Over the next several years and beyond, we anticipate that thousands of additional construction workers from various trades will be required to keep up with the demand.”
Courtney Taylor, executive director of AccelerateMS, said Mississippi’s construction industry isn’t just growing, it’s transforming.
“The expansion of companies such as AWS, Amplify Cell Technologies, and Aluminum Dynamics is reshaping the economic landscape, driving demand for infrastructure, and creating new opportunities for workforce development,” Taylor said. “These investments in Mississippi aren’t just significant, they’re a transformative force for the state’s construction industry, promising a future of growth and innovation.”
Lee Nations, president and CEO of Associated Builders and Contractors (ABC) for Mississippi, one of the nation’s strongest ABC chapters, echoed sentiments that the state’s construction industry is flourishing.
“We’ve been very fortunate that commercial construction remains a leader in the Mississippi economy,” said Nations, whose late dad, Perry Nations, served the construction industry in roles with the ABC, Associated General Contractors (AGC), and Mississippi Construction Education Foundation (MCEF).
MCEF president Brent Bean pointed to the booming signs of the construction industry.
“Everywhere you look, you can see construction of new buildings, roads, bridges,” Bean said. “Because of this, the demand for skilled workers is at an all-time high. This has also encouraged the construction industry to ensure they’re increasing wages and benefits for their employees. The opportunity to make a great living and have a successful career is right here for Mississippians, regardless of the region of the state.”
Jobs aplenty in a resilient industry
Construction jobs pay well. In Mississippi, four of the five most popular construction occupations saw annual pay exceeding the median for all employees in 2022.
For example, the median annual pay for all occupations in Mississippi is $36,100. In the construction industry, first-line supervisors’ median annual pay is $60,450. Plumbers and pipefitters’ median annual pay is $50,110. Electricians receive $54,640, and carpenters make $39,900 in median annual income. Only laborers fall below the median annual pay line, with $32,460.
Yet contractors are struggling to fill positions, with 85 percent of companies having difficulty filling hourly craft positions, according to an AGC survey last September.
“Back in the old days, we thought of construction as something we did until we got a real job,” said Lloyd Munn, executive director of AGC Mississippi. “Now, I call on clients who are having people retire after 30, 40, 50 years, with a nice pension and 401k. Many have benefits to some degree, including vacations. Safety is a priority on every job I go on. I’ve been in the construction industry for 30-plus years, and it’s treated me wonderfully. Construction is a very good career.”
Munn said overall, construction building seems steady, but the numbers don’t indicate “we’re in a boom, by no means.”
“For the construction industry in Mississippi as a whole, most people forget the tide rises everybody’s boat,” said Munn. “It’s not just a contractor building a building. It affects all the vendors, suppliers, engineers, architects. It’s far-reaching. Besides employing people, it’s good for everybody.”
In 2022, private nonresidential spending in Mississippi totaled $999 million. State and local spending totaled $2.4 billion. Totals were not available for residential, railroad, power, communication, or federal projects, according to the AGC.
“Despite the challenges of high interest rates, elevated material costs, and labor shortages, the residential construction industry in Mississippi has shown remarkable resilience,” said Seth Hood, executive vice president of the Home Builders Association of Mississippi (HBAM). “However, in some markets, the rising cost of land is adding pressure on builders, who are working hard in creating creative ways to absorb or eliminate these expenses rather than passing them on to customers. While Mississippi enjoys more stability compared to other states, we continue to navigate many of the same challenges impacting the industry nationwide.”
Part 5 of this series will focus on residential homebuilding.
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Part 2 of the construction industry impact series will continue Sunday, September 8, with a look at the Magnolia State’s grandest construction project.
