Construction In Washington State

Data from a University of Washington Study

Employment & Economic Impact in 2006

On average almost 254,000 workers were employed by contractors, construction services and material suppliers in the state.
• 10.8% of the state’s private sector workforce
• Total payroll of $11.6 billion
• 11.6% of total state non-government payroll

Construction sales were almost $32.8 billion in 2006.
• 19% of all sales in the state
• 16% growth from previous year (almost twice that of all other sectors)

For each $1 invested in new construction:
• The state’s economy generates an additional $2.03 in economic activity throughout the state
• Household earnings are increased by 73 cents – all households, not just those with someone employed in the construction industry

For each $1 million invested in new construction, and additional 23.7 jobs are created across the economy.

Contributions to Government Revenues in 2006
• Construction industry businesses paid more than $2.1 billion to the state in sales and B&O taxes, 21% of all payments (local taxes not included).

State Sales Tax Payments
• Contractors, construction suppliers and service providers paid more than $1.8 billion in state sales taxes.
• Construction contribution:
        24.9% of total state sales tax payments
• Other categories of sales tax payers:
        12.5% auto dealers and gas stations
        7.5% restaurants and bars
        2.8% food stores
        2.4% manufacturing
        0.1% agriculture, forestry & fishing
• Additional local construction sales taxes were more than $300 million. Only the broad category of retail sales businesses pays more sales tax than the construction industry.

State Business & Occupational Tax
• Contractors, construction suppliers and service providers paid nearly $300 million in state B&O taxes (local B&O taxes are not calculated).
• Construction contribution:
        10.9% of state B&O taxes paid
• Other categories of B&O tax payers:
        4.7% auto dealers and gas stations
        1.8% restaurants and bars
        2.0% food stores
        16.0% manufacturing
        0.5% agriculture, forestry & fishing

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