Construction ·NAICS 237

2026 data Public-data reference. IRS SOI · Census CBP · 2023 Below Average margin

Construction — Industry Benchmarks

Profit margins, payroll, employment, and SBA lending for Construction (NAICS 237). Cross-checked against IRS SOI 2023 and Census County Business Patterns. Refreshed as new data lands.

Construction (NAICS 237) operates at a 2.6% net profit margin, significantly below average, typical of high-volume, low-margin sectors. The industry generates $243.6B in total annual receipts across all business entities filing federal tax returns. Census Bureau data identifies 38,612 business establishments employing 1,051,261 workers nationwide.

The average employee earns $91,313/yr in annual compensation, while the typical business in this industry generates $4.8B in revenue. Businesses average 27.2 employees per establishment. Texas leads in employment concentration for this industry.

Benchmarking Insights for Construction

When you read the 2.6% net profit margin for Construction, the number only becomes actionable when paired with scale. This industry sits inside the broader Construction sector and reports $243.6B of aggregate annual receipts across 50,815 federal tax returns. Owners comparing their own books should read the margin as a midpoint — smaller operators typically run several points below the aggregate because fixed overhead (rent, software, insurance) consumes a larger share of lower revenue bases, while the typical establishment here generates $4.8B per year. Treat the industry figure as a ceiling calibrated by businesses that have already achieved operating leverage.

Labor economics tell the second half of the story. Census CBP shows 38,612 active establishments employing 1,051,261 workers, averaging 27.2 employees per location and paying $91,313/yr per employee annually. Texas leads the geographic distribution of employment, with California and Florida rounding out the top three concentrations. Headcount density matters because thin-margin industries only clear the cash-flow bar when establishments reach the staffing level where fixed costs amortize — a useful cross-check against the margin line above.

Capital access is the third lens. SBA 7(a) and 504 approvals for this industry totaled 2,034 loans worth $1.3 billion between FY2020 and FY2025, supporting 29,405 jobs at origination. The average ticket size — $618K — signals the typical capital gap operators bridge when expanding. The Huntington National Bank ranks as the most active SBA lender serving this NAICS code. Use this alongside the IRS and Census figures to decide whether your own plan should target operational efficiency, workforce expansion, or financed growth.

Profit Margin

2.6%

Net income ÷ total receipts (IRS SOI)

Total Receipts

$243.6B

Annual revenue (IRS SOI)

Net Income

$6.4B

Pre-tax net income

Employment

1,051,261

Total employees (Census CBP)

Avg Payroll / Employee

$91,313/yr

Annual compensation

Establishments

38,612

Business locations

Where each dollar of revenue goes

Decomposition of every dollar of Construction receipts using IRS SOI 2023 aggregate ratios.

Workforce scale

Establishment-size distribution and per-establishment headcount based on Census Statistics of US Businesses (SUSB) typical strata.

Margin position vs national reference points

Construction net margin 8.8%
US median (10%)

Plotted against a 0–30% scale. The US business p25 / median / p75 reference points are 5% / 10% / 18% respectively (IRS SOI aggregate).

Business Structure Breakdown

How businesses in this industry are legally structured (IRS SOI)

C Corporation
50,815 returns 100%

Margin: 2.6% · Receipts: $243.6B

Financial Detail

Total Tax Returns Filed
50,815
Total Deductions
N/A
Avg Receipts per Business
$4.8B
Annual Payroll (Total)
$96.0B
Avg Employees per Establishment
27.2

Sub-Industries

Industry Profit Margin
Construction

NAICS 2371

N/A
Construction

NAICS 2372

-2.4%
Construction

NAICS 2373

3.3%
Construction

NAICS 2379

N/A

Top States by Employment

State Employment
Texas 178,438
California 80,469
Florida 63,325
Louisiana 59,988
North Carolina 39,662
Pennsylvania 34,363
Georgia 31,216
New York 30,029
Illinois 29,689
Virginia 28,607

Showing top 10 of 51 states

SBA Lending Activity

FY2020–2025

Small Business Administration 7(a) and 504 loan data for this industry. Source: SBA FOIA dataset.

SBA Loans Approved

2,034

FY2020–2025

Total Loan Volume

$1.3B

7(a) + 504 programs

Avg Loan Size

$618K

Per approved loan

Jobs Supported

29,405

Reported at origination

Program Breakdown

7(a) Loans 1,830 loans (90%)
504 Loans 204 loans (10%)

Top SBA Lender

The Huntington National Bank

175 loans in this industry

New Business Share

26.6% of borrowers were new/startup businesses

Annual Lending Trend

FY2020
288 loans
FY2021
326 loans
FY2022
236 loans
FY2023
308 loans
FY2024
421 loans
FY2025
418 loans
FY2026
37 loans

SBA fiscal year runs Oct–Sep. FY2025 = partial year through Sep 2025.

Source: SBA 7(a) and 504 FOIA dataset · FY2020–FY2025 · View SBA lending rankings →

Frequently Asked Questions

What is the average revenue for Construction?
The Construction industry (NAICS 237) reports total annual receipts of $243.6B across all business entities, based on IRS Statistics of Income data. The average revenue per business is $4.8B.
How profitable is Construction?
Construction has a net profit margin of 2.6%, which is significantly below average, typical of high-volume, low-margin sectors. This is calculated as net income divided by total receipts from IRS SOI business tax statistics.
How many businesses are in Construction?
There are 38,612 business establishments in Construction (NAICS 237) according to Census Bureau County Business Patterns 2023 data. These establishments collectively employ 1,051,261 workers.
What is the average payroll per employee in Construction?
The average annual payroll per employee in Construction is $91,313/yr, based on Census Bureau County Business Patterns data. Businesses in this industry average 27.2 employees per establishment. This figure includes wages, salaries, and benefits reported by employers.
Which states have the most Construction employment?
Texas leads in Construction employment with 178,438 workers. California (80,469) and Florida (63,325) round out the top three. These figures come from the Census Bureau County Business Patterns 2023 survey.
How much SBA lending does Construction receive?
Construction businesses received 2,034 SBA loans totaling $1.3 billion between FY2020 and FY2025. The average loan size was $618K. These loans supported 29,405 jobs at origination. Most lending (90%) came through the SBA 7(a) program.
Disclaimer: PlainBizBench provides publicly available IRS and Census data for informational purposes only. This is not financial, tax, or business advice. Consult a qualified accountant or financial advisor for business-specific guidance.

Sources: IRS Statistics of Income (SOI) Business Tax Statistics · Census Bureau County Business Patterns 2023

NAICS 237 · Data year: 2023

Related

Data sourced from official public datasets. See our methodology for details. Retrieved and formatted by PlainBizBench Editorial

Source: U.S. Census Bureau — County Business Patterns / SUSB Industry employment scale, payroll, and firm-size benchmarks · 2025