Short answer
Michigan had 21,298 construction establishments with paid employees in 2023, employing 181,952 people with $14.73 billion in annual payroll, according to Census County Business Patterns. That's 2.61% of the US total and 13th among states. The Detroit metro holds 8,503 of them and Grand Rapids 3,057. 19,541 of them have fewer than 20 employees. Residential remodelers make up 18.6% of the state's contractors, against 16.6% nationally.
- 21,298 construction establishments and 181,952 employees in Michigan in 2023, 13th among states by establishments.
- Average pay is $80,972, above the US construction average, while establishments average 8.5 employees against 9.4 nationally.
- Metro Detroit has 39.9% of establishments and metro Grand Rapids 14.4%; the rest are spread across smaller metros and rural counties.
- Housing permits rose 9.1% in 2025 to 23,401 units, with apartment units up 24.6%.
- Only 227 Michigan construction establishments have 100 or more employees.
On this page
This report is for anyone working with construction companies across Michigan: owners and developers looking for a contractor outside their home metro, firms looking for partners or acquisitions, job seekers, and B2B sellers planning a statewide territory. Metro detail is on the Detroit construction companies report.
Michigan construction by the numbers
US Census Bureau County Business Patterns (CBP) 2023, construction sector (NAICS 23), State of Michigan:
| Measure | Michigan, 2023 |
|---|---|
| Construction establishments | 21,298 |
| Employees (week of March 12) | 181,952 |
| Annual payroll | $14,733,040,000 |
| Average employees per establishment | 8.5 |
| Average annual pay | $80,972 |
| Share of US construction establishments | 2.61% (of 814,557) |
| Rank among states by establishments | 13th |
Average pay is about $4,400 above the roughly $76,580 for all US construction establishments in the same data (state totals summed). CBP counts establishments (locations) with paid employees, not companies; a contractor with offices in Troy and Grand Rapids counts twice. Self-employed contractors with no employees aren't counted, and in a state with this many small remodelers that leaves out a lot of one-person businesses.
Where Michigan's contractors are
| Metro area | Establishments | Employees | Average size |
|---|---|---|---|
| Detroit-Warren-Dearborn | 8,503 | 80,913 | 9.5 |
| Grand Rapids-Wyoming-Kentwood | 3,057 | 28,272 | 9.2 |
| Lansing-East Lansing | 808 | 8,177 | 10.1 |
| Traverse City | 706 | 4,593 | 6.5 |
| Flint | 613 | 6,704 | 10.9 |
| Ann Arbor | 573 | 5,501 | 9.6 |
| Kalamazoo-Portage | 434 | 5,549 | 12.8 |
| Saginaw | 348 | 2,937 | 8.4 |
| Muskegon-Norton Shores | 297 | 2,418 | 8.1 |
By county, Oakland (2,877), Wayne (2,201) and Macomb (2,053) lead, followed by Kent (1,610) and Ottawa (1,044) in West Michigan. Traverse City's 706 establishments average just 6.5 employees, the smallest of the metros listed. Detroit and Grand Rapids together hold 54.3% of the state's establishments.
A state of remodelers and industrial builders
| Type of work (NAICS) | Establishments | Employees | Share in Michigan | Share in US |
|---|---|---|---|---|
| Building construction (236) | 7,031 | 43,752 | 33.0% | 31.3% |
| Residential remodelers (236118) | 3,959 | 14,368 | 18.6% | 16.6% |
| Single-family homes for clients and on owned lots (236115) | 1,386 | 5,737 | 6.5% | 7.4% |
| Industrial building (236210) | 153 | 2,613 | 0.7% | 0.4% |
| Commercial and institutional builders (236220) | 1,072 | 18,394 | 5.0% | 4.8% |
| Heavy and civil engineering (237) | 1,044 | 19,429 | 4.9% | 4.7% |
| Specialty trade contractors (238) | 13,223 | 118,771 | 62.1% | 64.0% |
| Plumbing, heating and air conditioning (238220) | 2,661 | 30,546 | 12.5% | 13.7% |
| Electrical contractors (238210) | 1,960 | 25,227 | 9.2% | 10.2% |
| Site preparation (238910) | 1,220 | 11,285 | 5.7% | 5.1% |
US shares are calculated from the CBP 2023 state files summed across all states. Michigan has more building contractors than the national mix and slightly fewer trade firms, and within building, more remodelers and industrial builders and fewer new-home builders. Oil and gas pipeline contractors (237120) number 32; the Census Bureau flags their employee total as high-noise (noise added for confidentiality changed it by 5% or more), so it isn't reported here.
Firm size
| Employees per establishment | Establishments |
|---|---|
| 1 to 4 | 14,135 |
| 5 to 9 | 3,320 |
| 10 to 19 | 2,086 |
| 20 to 49 | 1,200 |
| 50 to 99 | 330 |
| 100 to 249 | 182 |
| 250 to 499 | 31 |
| 500 to 999 | 9 |
| 1,000 or more | 5 |
19,541 establishments (91.8%) have 1 to 19 employees, 1,530 (7.2%) have 20 to 99 and 227 (1.1%) have 100 or more. Only five construction establishments in the state have 1,000 or more employees.
Housing permits statewide
| Units authorized (Census Building Permits Survey) | 2024 | 2025 |
|---|---|---|
| Single-family | 15,137 | 15,421 |
| 2 to 4 units | 876 | 1,212 |
| 5 or more units | 5,430 | 6,768 |
| Total | 21,443 | 23,401 |
Michigan was one of the states where housing permits grew in 2025: total units up 9.1%, single-family up 1.9% and apartment units up 24.6%. These counts cover housing only, not the industrial and commercial work Michigan's larger contractors depend on.
What to check before you hire
Michigan cities rely on state licenses for residential and trade work, and set their own rules on top:
- Residential work in Detroit: contractors "must have a Builder's License and City registration" to pull a permit; homeowners can apply without one.
- Commercial work in Detroit: the city lists "No license required" for the contractor, but plans must be sealed by a state-registered architect or engineer.
- Ann Arbor: contractors register with the city before applying for any permit that requires state licensing.
- Trade permits (electrical, mechanical, plumbing) go to licensed professionals, or to homeowners working on homes they live in.
The state licensing agency's website blocked our automated checks on 30 October 2026, so look up a residential builder's or trade contractor's state license directly with Michigan's licensing department. Then:
- Confirm the license is active and in the name on the contract.
- Ask for two or three permits from recent jobs like yours, and check them with the city or township that issued them.
- Get certificates of insurance and confirm them with the agent.
- Tie payments to completed work, and collect lien waivers at each draw.
Prospecting Michigan construction companies
- Split the state into three territories. Southeast Michigan (the Detroit and Ann Arbor metros, about 9,100 establishments), West Michigan (the Grand Rapids, Kalamazoo and Muskegon metros, about 3,800) and the rest of the state (about 8,400, many of them small).
- Pick segments that match the state. Remodelers (3,959) and specialty trades (13,223) are the volume; the 1,072 commercial builders and 153 industrial builders are fewer, larger accounts.
- Time the outreach to the season. Exterior work slows in winter, which is when many owners plan, buy software and line up suppliers for spring.
- Match the contact to the size. Owners decide at the 19,541 establishments under 20 employees; at the 227 largest, go to operations, procurement and safety. See how to find decision makers.
Illustrative example. The lender, volumes and rates are invented; the counts are CBP 2023.
Great Lakes Project Finance (greatlakesfinance.example) offers point-of-sale financing that remodelers can offer homeowners. Its targets are Michigan's 3,959 residential remodelers. It assumes a third do jobs above $15,000 where financing helps close the sale, about 1,320 firms, and that an active dealer finances 12 jobs a year at an average of $22,000. That's $264,000 in loans per dealer; signing 150 dealers is $39.6 million in annual originations. Most of these firms have fewer than five employees, so the research on each one is the slow part; Bebop does it for every account in the list.
Statewide sources for names
| Source | What it gives you |
|---|---|
| AGC of Michigan member directory | Commercial contractors in the statewide AGC chapter, based in Lansing |
| Construction Association of Michigan buyers guide | Member directory of contractors and suppliers |
| Detroit open data | City of Detroit building and trade permits since 2019 |
| Michigan Economic Development Corporation | The state's economic development agency, whose projects create industrial construction |
| Census Building Permits Survey | Housing permits by state, metro, county and place |
The data file of SEC-registered listed construction companies shows none with a Michigan business address. For other Michigan industries, see manufacturing companies in Michigan and companies in Michigan.
Next step: turn these segments into a 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 2025 (st2512y), US Census Bureau, accessed 30 October 2026
- Building Permits Survey, annual state data for 2024 (st2412y), US Census Bureau, accessed 30 October 2026
- Building permits, City of Detroit Buildings, Safety Engineering and Environmental Department, accessed 30 October 2026
- Building services: contractor registration, City of Ann Arbor, accessed 30 October 2026
- Associated General Contractors of Michigan, AGC of Michigan, accessed 30 October 2026
- Construction Association of Michigan, Construction Association of Michigan, accessed 30 October 2026
Written by the Bebop team at Blackpearl Group. Published .
Questions people ask
How many construction companies are in Michigan?
The US Census Bureau counted 21,298 construction establishments with paid employees in Michigan in 2023, employing 181,952 people with $14.73 billion in payroll. That's 2.61% of the US total and 13th among states. Establishments are locations rather than companies, and self-employed contractors with no employees aren't included, so the number of businesses doing construction work is higher.
Where are most construction companies in Michigan?
The Detroit-Warren-Dearborn metro area had 8,503 construction establishments in 2023, 39.9% of the state's total, and metro Grand Rapids had 3,057. By county, Oakland (2,877), Wayne (2,201), Macomb (2,053), Kent (1,610) and Ottawa (1,044) lead. Lansing, Traverse City, Flint and Ann Arbor each have 570 to 810 establishments.
Do contractors need a license in Michigan?
For residential and trade work, generally yes. In Detroit, residential contractors must have a builder's license and city registration to pull a permit, and trade permits go to licensed professionals or owner-occupants. Detroit lists no contractor license requirement for commercial building permits, though plans must be sealed by a state-registered architect or engineer. Check the state license directly with Michigan's licensing department.
How much do construction workers make in Michigan?
Census County Business Patterns puts average annual pay at Michigan construction establishments at $80,972 in 2023: $14.73 billion in payroll across 181,952 employees. That's above the average for all US construction establishments in the same data, about $76,580. Metro Detroit is higher still, at $88,312. These are averages across every construction job, not a wage for one trade.
Is construction growing in Michigan?
Housing construction grew in 2025. The Census Bureau's Building Permits Survey shows 23,401 new housing units authorized in Michigan in 2025, up 9.1% from 21,443 in 2024. Single-family units rose slightly, from 15,137 to 15,421, while units in buildings of five or more rose from 5,430 to 6,768. Commercial and industrial work isn't included.