The construction industry is a critical component in the economic backbone of our nation and our state. Nationally, construction accounted for 28.8% of all U.S. economic activity in 2007 according to a recent report sponsored by the National Association of Industrial and Office Properties (NAIOP) Research Foundation. During that year, total construction spending totaled $1.16 trillion, supported over 33 million jobs and generated personal earnings totaling $1.225 trillion. It is easy to see that the impacts of this industry reach far beyond the dollars and jobs tied directly to putting work in place; it supports numerous other industries at both the national and local levels. The purpose of this report is to bring together information on the economic impacts of construction on the state of Colorado.

Following are some important facts about construction in Colorado.

• Construction is one of the top industries in Colorado, contributing $12,447 billion (or 5.27%) to Colorado’s GDP by state.
• Total retail sales for construction-related industries in Colorado totaled $12.7 billion in 2007, 8.95% of the state’s total retail sales.
• Every $1 million invested in construction in Colorado increases the state’s total industry output by $2.51 million, increases Colorado household earnings by $0.8667 million, and creates 24 new jobs in Colorado.
• Mechanical, electrical and plumbing (MEP) contractors1 were responsible for $2.529 billion of the construction industry’s value added business in Colorado.
• In 2007, the contribution of Colorado’s construction industry to GDP by state decreased 14.98% from 2006.
• Construction value was $14.5 billion in 2007, a 14% decrease from 2006 due to declines in the residential and non-building sectors. Construction value for the non-residential (commercial) sector increased 11% in 2007 to $5.1 billion.
• Colorado was home to more than 22,300 construction establishments in 2007, representing a 12.18% increase in the last six years. Of these establishments, 52% were specialty trade companies; 22% were MEP contractors.
• Over two-thirds of Colorado’s construction industry is comprised of small companies, with four or fewer employees.
• A majority (79%) of mechanical and plumbing establishments are in the residential section, employing 57% of mechanical and plumbing workers; however, residential wages only account for 51.37% of total mechanical and plumbing wages.
• The construction industry employs about 9% of the total private workforce, accounting for $7.639 billion of the state’s total payroll.
• As a group, the mechanical, plumbing and electrical industries average more than 26% of the total construction employment in Colorado and 2.27% of the state’s entire employment.
• Payroll for mechanical, electrical, and plumbing contractors1 was $1.99 billion in 2007, representing almost 26% of total construction payroll and 2.26% of total payroll for the state.
• The national average annual wage for mechanical, electrical, and plumbing contractors was $48,201, 21% higher than the average for those with an associate’s degree and 54% higher than the average wage for high school graduates.
• By 2016, construction employment in Colorado is expected to grow by 35.8%, adding more than 60,000 jobs in the state. Two-thirds of these jobs will be in the specialty trades, which are expected to increase 35.6% by 2016.
• The number of construction workers who are 55 and older increased 66% between 1997 and 2007, while the percentage of workers who are 34 and younger decreased 6%. During the same time period, mechanical, electrical and plumbing contractors1 who were 55 and older increased almost 55%, while the percentage under 35 decreased 4%.

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