Short answer
Maryland had 14,528 construction establishments with paid employees in 2023, employing 167,451 people with $12.88 billion in payroll, according to Census County Business Patterns. That's 1.78% of the US total and 22nd among states. Montgomery County led with 2,293. Federal agencies obligated $1.88 billion for construction performed in Maryland in fiscal 2025. Home improvement contractors must hold a Maryland Home Improvement Commission license; there's no MHIC license for subcontractors.
- 14,528 construction establishments and 167,451 employees in Maryland in 2023, 22nd among states by establishments.
- The Baltimore metro has 6,799 establishments; Maryland's four Washington-area counties have 5,440.
- Electrical, plumbing and HVAC contractors employ 58,126 people, 34.7% of the state's construction workforce.
- Federal construction obligations in Maryland were $1.88 billion in fiscal 2025, led by the Army ($690.1 million) and the Navy ($416.7 million).
- Housing units permitted fell from 16,823 in 2024 to 13,358 in 2025.
On this page
This report is for Maryland homeowners and building owners choosing a contractor, firms looking for subcontractors or teaming partners, people researching the market and B2B sellers planning a Maryland territory. It uses Census counts, federal contract records and the state's licensing rules.
Maryland construction by the numbers
County Business Patterns (CBP) 2023, construction sector (NAICS 23), State of Maryland:
| Measure | Maryland, 2023 |
|---|---|
| Construction establishments | 14,528 |
| Employees | 167,451 |
| Annual payroll | $12,881,129,000 |
| Average employees per establishment | 11.5 |
| Average annual pay | $76,925 |
| Share of US construction establishments | 1.78% (of 814,557) |
| Rank among states by establishments | 22nd |
| Employees per establishment | Establishments |
|---|---|
| 1 to 4 | 9,016 |
| 5 to 9 | 2,234 |
| 10 to 19 | 1,499 |
| 20 to 49 | 1,104 |
| 50 to 99 | 408 |
| 100 to 249 | 213 |
| 250 to 499 | 40 |
| 500 to 999 | 10 |
| 1,000 or more | 4 |
In bands: 12,749 establishments (87.8%) have 1 to 19 employees, 1,512 have 20 to 99 and 267 have 100 or more.
Counting rules. CBP counts each location with paid employees in mid-March 2023 as an establishment; it doesn't count companies. Self-employed contractors without payroll aren't included, and a Virginia or Pennsylvania contractor working in Maryland is counted in its home state.
Two regions and the rest
| Region | Establishments | Employees |
|---|---|---|
| Baltimore-Columbia-Towson metro (seven jurisdictions) | 6,799 | 79,188 |
| Washington-area counties: Montgomery, Prince George's, Frederick, Charles | 5,440 | 71,393 |
| Rest of Maryland | 2,289 | 16,870 |
| County | Establishments | Employees |
|---|---|---|
| Montgomery County | 2,293 | 25,681 |
| Baltimore County | 1,893 | 25,005 |
| Prince George's County | 1,883 | 33,333 |
| Anne Arundel County | 1,714 | 20,912 |
| Frederick County | 904 | 8,998 |
| Howard County | 834 | 12,463 |
| Harford County | 807 | 5,783 |
| Carroll County | 733 | 6,070 |
| Baltimore city | 587 | 7,737 |
| Charles County | 360 | 3,381 |
| Washington County | 332 | 3,023 |
| Calvert County | 299 | 2,140 |
Prince George's County has the state's largest construction workforce, at 17.7 employees per establishment, against 11.2 in Montgomery. The rest of the state, from the Eastern Shore to western Maryland, averages 7.4. For the Washington suburbs alongside the District and Northern Virginia, see the Washington, DC report.
The trades lead
| Type of work (NAICS) | Establishments | Employees |
|---|---|---|
| Specialty trade contractors (238) | 9,065 | 118,543 |
| Electrical, plumbing and HVAC (2382) | 3,567 | 58,126 |
| Foundation, structure and exterior (2381) | 1,595 | 22,571 |
| Building finishing (2383) | 2,192 | 20,605 |
| Other specialty, including site preparation (2389) | 1,711 | 17,241 |
| Building construction (236) | 4,872 | 34,708 |
| Residential building (2361) | 3,894 | 18,361 |
| Commercial and institutional building (236220) | 942 | 15,285 |
| Heavy and civil engineering (237) | 591 | 14,200 |
| Utility systems (2371) | 304 | 8,045 |
| Highway, street and bridge (2373) | 135 | 4,774 |
Mechanical and electrical contractors employ more than a third of Maryland's construction workers and average 16.3 employees each. Commercial builders average 16.2; residential builders 4.7.
Federal construction in Maryland
USAspending.gov records federal contract obligations by place of performance. For contracts classified in construction (NAICS 23) and performed in Maryland in fiscal 2025 (October 2024 to September 2025), agencies obligated $1.88 billion to 628 recipients, 161 of them with $1 million or more.
| Agency | FY2025 construction obligations in Maryland |
|---|---|
| Department of the Army | $690.1 million |
| Department of the Navy | $416.7 million |
| National Institutes of Health | $402.8 million |
| General Services Administration (Public Buildings Service) | $74.9 million |
| Department of Veterans Affairs | $63.2 million |
Commercial and institutional building (NAICS 236220) was $1.59 billion of the total. The largest recipients named in the data were Clark Construction Group ($392.1 million), Hensel Phelps Construction ($125.1 million), Grunley Construction ($72.8 million) and Whiting-Turner Contracting ($68.9 million). Obligations are money committed in the year, not revenue, and they net out deobligations.
Housing permits fell in 2025
| Units authorized (Building Permits Survey) | 2024 | 2025 |
|---|---|---|
| Single-family | 10,885 | 9,345 |
| 2 to 4 units | 60 | 443 |
| 5 or more units | 5,878 | 3,570 |
| Total | 16,823 | 13,358 |
The drop was steepest in apartments: units in buildings of five or more fell 39%. For multifamily trades and suppliers, the Washington and Baltimore pipelines are thinner going into 2026.
What Maryland licenses
| Who | License | Issued by |
|---|---|---|
| Home improvement contractors and salespersons | Home improvement license: alteration, remodeling, repair or replacement of a building used as a residence | Maryland Home Improvement Commission (MHIC), Maryland Department of Labor |
| Home improvement subcontractors | No license since 1 July 2016; they may work for an MHIC-licensed contractor but can't contract directly with homeowners | MHIC |
| Electricians, plumbers, HVACR contractors, elevator work | State occupational licenses | Maryland Department of Labor licensing boards |
MHIC licensing doesn't cover work on condominium common areas or on buildings with four or more single-family units. A homeowner harmed by a licensed contractor can claim up to $30,000 from the Home Improvement Guaranty Fund, limited to what they paid, so hiring an unlicensed firm gives up that protection.
Hiring a Maryland contractor
- Search the MHIC license for any home improvement job, and the contractor's salesperson if a salesperson sold the job.
- Check the trade licenses for electrical, plumbing or HVAC work with the Maryland Department of Labor.
- Ask for the county permit before work starts, and for recent permits on similar jobs in the same county.
- Get the insurance certificate and a written contract with a payment schedule.
Public companies
No SEC-listed construction company has its business address in Maryland. The state's largest builders, including the federal contractors named above, are private or headquartered elsewhere.
Prospecting Maryland contractors
| Segment | Size | Who to reach |
|---|---|---|
| Federal building primes | 161 recipients with $1 million or more in FY2025 | Project executives, preconstruction, contracts and safety managers |
| Mechanical and electrical trades | 3,567 establishments, 58,126 employees | Owner; service, operations and purchasing managers at larger firms |
| Home improvement contractors | MHIC licensees | The owner |
| Civil and utility contractors | 591 establishments | Equipment, operations and estimating leads |
Illustrative example. The company and its assumptions are invented; the establishment count is from CBP 2023.
Chesapeake Controls (chesapeakecontrols.example) distributes building automation and HVAC controls. Its market is the 3,567 electrical, plumbing and HVAC establishments. If 15% (about 535) do commercial controls work and it wins 8% of them at $30,000 a year, that's 43 accounts and $1.29 million. The useful research is which of them won federal or hospital work this year; Bebop researches each account on a list like this and suggests the angle to open with.
Sources for names
| Source | What it gives you |
|---|---|
| MHIC | Home improvement licensing rules, the Guaranty Fund and the license search |
| Maryland Department of Labor licensing | Boards for electricians, plumbing, HVACR and other trades |
| USAspending.gov | Federal contracts by place of performance, agency, NAICS code and recipient |
| eMaryland Marketplace Advantage | State and local bid opportunities (registration required) |
| Maryland Building Industry Association | Residential builders and remodelers, with a member directory |
| ABC Greater Baltimore | Merit shop contractors in the Baltimore region |
| Maryland Chamber of Commerce | Statewide business chamber |
| Maryland Department of Commerce | Economic development and business expansion announcements |
Next step: see the neighboring market in the Virginia construction companies report, or build your list with the construction companies industry guide.
Sources
- County Business Patterns 2023, US Census Bureau, accessed 30 October 2026
- Building Permits Survey, annual state data for 2024 and 2025, US Census Bureau, accessed 30 October 2026
- Spending by category: NAICS 23 contracts, place of performance Maryland, FY2025, USAspending.gov (US Department of the Treasury), accessed 30 October 2026
- Maryland Home Improvement Commission, Maryland Department of Labor, accessed 30 October 2026
- Occupational and professional licensing, Maryland Department of Labor, accessed 30 October 2026
Written by the Bebop team at Blackpearl Group. Published .
Questions people ask
How many construction companies are in Maryland?
The Census Bureau counted 14,528 construction establishments with paid employees in Maryland in 2023, employing 167,451 people. That's 1.78% of the US total and 22nd among states. Montgomery County had the most (2,293), followed by Baltimore County (1,893) and Prince George's County (1,883). The count is of locations and excludes self-employed contractors with no employees.
Do contractors need a license in Maryland?
Home improvement contractors and salespersons need a license from the Maryland Home Improvement Commission for remodeling, repair or replacement work on homes. Subcontractors haven't needed an MHIC license since July 2016 but can't contract directly with homeowners. Electricians, plumbers and HVACR contractors hold state licenses from Maryland Department of Labor boards. Counties issue the permits.
How do I check a contractor's license in Maryland?
For home improvement work, use the Maryland Home Improvement Commission's license search, linked from its page on the Maryland Department of Labor site, to check the contractor and any salesperson. For electricians, plumbers and HVACR contractors, check the matching state board. A homeowner can recover up to $30,000 from the Guaranty Fund only when the contractor was licensed.
How much federal construction work is there in Maryland?
USAspending.gov shows $1.88 billion in federal contract obligations for construction performed in Maryland in fiscal 2025, across 628 recipients. The Army obligated $690.1 million, the Navy $416.7 million and the National Institutes of Health $402.8 million. Most of it, $1.59 billion, was commercial and institutional building. The largest recipient was Clark Construction Group, with $392.1 million.