Associated Builders and Contractors has released its 10th annual Merit Shop Scorecard, rating Tennessee as a state with a strong business environment for merit shop construction contractors. Ranking 10 out of 51, Tennessee rated highly due to favorable state laws, policies, programs and statistics related to open competition and developing current and future craft professionals.
The scorecard, released annually since 2015, ranks all 50 states and the District of Columbia based on policies and programs that better career pathways in construction, further workforce development and strengthen fair and open competition on taxpayer-funded construction projects.
“ABC’s rankings make it clear that policies and processes that protect free enterprise, promote economic growth, reduce regulatory burdens and expand workforce development create the conditions to welcome all of Tennessee’s construction industry to rebuild local infrastructure,” said Amber Harris, WTCABC President and CEO. “Tennessee is setting the standard for favorable conditions for its construction industry, and workforce, to thrive. Clearly, our taxpayers are best served by a regulatory environment that creates a level playing field for all contractors to build Memphis with fewer obstacles. As ABC’s Merit Shop Scorecard has demonstrated, Tennessee lawmakers have created the conditions for a healthy construction industry.”
Tennessee’s 2024 Merit Shop Scorecard rankings:
- Overall rank: 10
- Project labor agreement policy: Adopted ABC model government-neutrality bill.
- Prevailing wage mandates: Only for highway contractors and subcontractors; $50,000.
- Right-to-work laws: Yes.
- Public-private partnerships: Statute authorizes the Department of Transportation to enter into P3s to develop a tollway or toll facility, as well as mass transit projects and their associated facilities. Bridges, highways and tunnels are excluded. Unsolicited bids are allowed, but competing bids are accepted during a subsequent 90-day review process.
- Construction job growth: 5%
- Workforce development incentives: Current labor supply satisfies 83% of peak labor demand.
- Career and technical education: 97.8% of high school CTE students graduated, and 78.3% of postsecondary CTE students were placed in careers or apprenticeships. Tennessee does recognize NCCER as an approved curriculum for CTE programs.
Building America: The Merit Shop Scorecard rates state laws, programs, policies and statistics in seven categories: project labor agreements, prevailing wage laws, right-to-work laws, public-private partnerships, workforce development, CTE and job growth rate.
Learn more at meritshopscorecard.org.
