Construction ·NAICS 238

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

Construction — Industry Benchmarks

Profit margins, payroll, employment, and SBA lending for Construction (NAICS 238). Cross-checked against IRS SOI 2023 and Census County Business Patterns. Refreshed as new data lands.

Construction (NAICS 238) operates at a 7.6% net profit margin, in line with the national median. The industry generates $852.9B in total annual receipts across all business entities filing federal tax returns. Census Bureau data identifies 521,315 business establishments employing 4,986,759 workers nationwide.

The average employee earns $71,571/yr in annual compensation, while the typical business in this industry generates $292.7M in revenue. Businesses average 9.6 employees per establishment. California leads in employment concentration for this industry.

Benchmarking Insights for Construction

When you read the 7.6% net profit margin for Construction, the number only becomes actionable when paired with scale. This industry sits inside the broader Construction sector and reports $852.9B of aggregate annual receipts across 2,913,744 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 $292.7M 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 521,315 active establishments employing 4,986,759 workers, averaging 9.6 employees per location and paying $71,571/yr per employee annually. California leads the geographic distribution of employment, with Texas 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 34,529 loans worth $14.8 billion between FY2020 and FY2025, supporting 324,487 jobs at origination. The average ticket size — $430K — 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

7.6%

Net income ÷ total receipts (IRS SOI)

Total Receipts

$852.9B

Annual revenue (IRS SOI)

Net Income

$65.3B

Pre-tax net income

Employment

4,986,759

Total employees (Census CBP)

Avg Payroll / Employee

$71,571/yr

Annual compensation

Establishments

521,315

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 25.5%
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
435,053 returns 15%

Margin: 4.3% · Receipts: $601.1B

Sole Proprietorship
2,478,691 returns 85%

Margin: 15.7% · Receipts: $251.8B

Financial Detail

Total Tax Returns Filed
2,913,744
Total Deductions
N/A
Avg Receipts per Business
$292.7M
Annual Payroll (Total)
$356.9B
Avg Employees per Establishment
9.6

Sub-Industries

Industry Profit Margin
Construction

NAICS 2381

4.9%
Construction

NAICS 2382

4.0%
Construction

NAICS 2383

N/A
Construction

NAICS 2389

4.2%

Top States by Employment

State Employment
California 582,703
Texas 479,699
Florida 386,498
New York 244,452
Pennsylvania 166,915
North Carolina 156,911
Illinois 153,878
Washington 149,030
Ohio 147,302
Arizona 142,590

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

34,529

FY2020–2025

Total Loan Volume

$14.8B

7(a) + 504 programs

Avg Loan Size

$430K

Per approved loan

Jobs Supported

324,487

Reported at origination

Program Breakdown

7(a) Loans 31,307 loans (91%)
504 Loans 3,222 loans (9%)

Top SBA Lender

The Huntington National Bank

4,254 loans in this industry

New Business Share

22.8% of borrowers were new/startup businesses

Annual Lending Trend

FY2020
4,041 loans
FY2021
4,435 loans
FY2022
4,576 loans
FY2023
5,687 loans
FY2024
7,216 loans
FY2025
7,528 loans
FY2026
1,046 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 238) reports total annual receipts of $852.9B across all business entities, based on IRS Statistics of Income data. The average revenue per business is $292.7M.
How profitable is Construction?
Construction has a net profit margin of 7.6%, which is in line with the national median. This is calculated as net income divided by total receipts from IRS SOI business tax statistics.
How many businesses are in Construction?
There are 521,315 business establishments in Construction (NAICS 238) according to Census Bureau County Business Patterns 2023 data. These establishments collectively employ 4,986,759 workers.
What is the average payroll per employee in Construction?
The average annual payroll per employee in Construction is $71,571/yr, based on Census Bureau County Business Patterns data. Businesses in this industry average 9.6 employees per establishment. This figure includes wages, salaries, and benefits reported by employers.
Which states have the most Construction employment?
California leads in Construction employment with 582,703 workers. Texas (479,699) and Florida (386,498) 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 34,529 SBA loans totaling $14.8 billion between FY2020 and FY2025. The average loan size was $430K. These loans supported 324,487 jobs at origination. Most lending (91%) 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 238 · 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