Alaska Trends

T

his edition of Alaska Trends features two reports: the construction industry’s economic impact and a construction forecast.

For impact, the construction industry’s presence in Alaska is well-noted through the common adage that Alaska has two seasons: winter and construction. Activities are highly visible as workers build or repair roads, buildings, and other infrastructure. But construction is a part of everyday Alaska life through less visible means, such as providing one in twenty Alaska jobs—accounting for 10 percent of all Alaska income—and an average wage surpassed by only a few other industries, such as oil and gas.

The construction forecast is a critical tool for construction companies, but considering the industry’s impact on the state—both through the projects constructed and the people constructing them—it is one indicator of the economy that all Alaska businesses operate in.

Setting the reports side by side provides an opportunity to consider how important construction industry activities are to Alaskans, as well as how Alaskans can diminish or support those activities through our business endeavors, purchasing choices, and elected leaders.

Sources: “The Economic Benefits of Alaska’s Construction Industry” and “Alaska’s 2026 Construction Spending Forecast,” both published January 2026 and prepared by McKinley Research Group for the Associated General Contractors of Alaska/Construction Industry Progress Fund

44,400

construction related jobs
Total statewide including multipler effects.

$4.2B

Annual labor income
10% of Alaska’s total payroll.

$101,700

average annual wage
30% above the average wage for all Alaska workers.

CONSTRUCTION EMPLOYMENT BY MAJOR CATEGORY

Donut chart showing Alaska construction employment by sector: specialty trade contractors 41 percent, construction of buildings 32 percent, and heavy construction 27 percent.

Graphic stating that 85 percent of wages in Alaska’s construction industry are paid to Alaska residents, beside an Alaska state silhouette wearing a hard hat.

Row of five traffic cone icons used as a decorative construction graphic.

Graphic stating that 79 percent of construction workers are Alaska residents, illustrated with three yellow hard hats and one black circle.

2026 CONSTRUCTION SPENDING FORECAST
The spending forecast projects total expenditures of $6.7B. Private sector spending accounts for $3.8B while the public sector comprises $2.9B.

One North Slope project will move into production this year, reducing overall oil and gas construction spending.

Healthcare-related spending reflects several large projects, and a wide range of utility infrastructure work is planned for the coming year.

Donut chart comparing Alaska construction spending by market, with private spending larger than public spending. Largest private categories are oil and gas at $1.4 billion and utilities at $750 million. Largest public categories are airports, ports, harbors, and railroads at $900 million, and highways and roads at $690 million.

Construction Appropriations over time

A vital component of annual construction spending in Alaska is federal transportation infrastructure funding. Funds are unlocked by state matching funds.

In early April, Governor Mike Dunleavy signed the legislature’s supplemental budget, which includes $70.2M for Alaska construction funding and unlocks upwards of $630M in federal funding.

Stacked bar chart of Alaska construction funding from 2016 to 2026, with federal funding larger than state funding each year. Total funding peaks in 2025 at just over $3 billion, then declines in 2026.

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