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The Best States for Contractors in 2025: Where Demand, Pay, and Opportunity Align

Written by Stephanie Mickelson | Oct 2, 2025 12:01:38 PM

Carpenters are finding the sweet spot between high pay and demand 

If you’re a contractor wondering where your skills are most valued and your earning potential is highest, you’re asking the right questions. We have some answers. The construction landscape is shifting. While some sectors are declining, certain states are emerging as hotspots for construction activity, high wages, and job demand. 

At Eagle Woodworking, we did some digging, and our latest survey reveals the top states for contractors across the country. We analyzed adjusted wages, employment demand, and new construction activity to identify the best states for contractors. Carpenters are overwhelmingly the most in-demand trade across the country. They also vie for the top spot when wages and number of jobs are factored in, alongside plumbers and electricians.

Key Takeaways 

  • Illinois took the top spot when wages, employment rates, and construction projects were combined. 
  • Carpenters are the most in-demand trade in nearly 30 states.
  • Demand for trade jobs is high in states with booming construction activity, including California, Texas, Washington, and Florida.

National Trends in Trades 

Construction activity is down in the private sector, but the public sector is rising. This trend is driving demand. Hotspots like California and Texas are fueling nationwide demand for trades. In nearly 30 states, Carpenters dominate as the most in-demand trade, though other trades show strong regional demand. Welders, for instance, are needed in Alaska and Arkansas, and HVAC technicians are the most in-demand trade in Florida.

Top States for Contractors 

Illinois – The Top State 

Topping the list of the best states for contractors is Illinois, with a 100 score based on our study. In the heart of the Midwest, Illinois has over 5,000 active construction projects underway, creating ample job opportunities for those in the trades. Plumber wages surpass $93,000 when adjusted for cost of living. Electricians make nearly $77,000, and wages for carpenters are just below $65,000. 

Job demand for the trades in Illinois is strong. Carpenters lead the way with 3.99 per 1,000 jobs, followed by electricians with 3.64 and plumbers with 2.82. The balanced combination of high wages and steady employment makes Illinois stand out as the top state for contractors. 

Washington

Washington’s score of 98.29 solidly places it as one of the best states for contractors. The state offers competitive wages, especially when adjusted for cost of living. Electrician wages are $77,330, and plumbers earn just over $72,000. Carpenters earn $65,576. With over 10,500 active projects, there’s a high density of employment and a robust project pipeline driving demand across trades. In Washington, there are 8.2 carpenters per 1,000 jobs, trailed by electricians with 5.38 and followed by plumbers with 3.1.

New Jersey

New Jersey stands out as one of the best states for contractors with over 11,000 active projects and strong wages. This construction-heavy region takes third place with a score of 94.24 and offers solid performance across wages and employment. Plumbers earn over $85,000 and electricians and carpenters come in earn just under $70,000. 

Wage and Cost-of-Living Advantages 

The trades offer solid earning potential, especially when you know where to look. Our data shows that, while different states offer different wages, making a living in the trades is entirely possible. In fact, wage power was a key driver of state rankings. In each of the top three states, a different trade took the top spot for adjusted wages.

  • Illinois: Plumbers make over $93,000
  • Washington: Electricians lead at over $77,000
  • New Jersey: Carpenters lead, making over $69,000

States with Booming Construction Activity 

While construction activity as a whole is down across the country, certain regions are seeing a boom in projects. Private spending is also down, but increased public spending is keeping the industry active. Texas is expanding its metropolitan areas and has over 74,000 projects, many of which focus on commercial construction and energy-related work.

In Florida and California, large-scale urban development, infrastructure, and housing projects lead the way, driving demand for skilled trade workers.

In Texas and California, the demand for carpenters surpasses other trades, though electricians and plumbers are also in high demand.  

Trade-Specific Insights

Across the country, carpenters were the most in-demand trade, ranking first in nearly 30 states with Illinois, California, and New Jersey leading for wages and demand. Plumbers and electricians were also in high demand. Prospects for electricians are strong in Washington, Massachusetts, and Illinois where wages are high. For plumbers, Illinois and New Jersey lead in adjusted wages. 

Other in-demand trades included painters, particularly in Idaho, Massachusetts, and Wyoming. Welders hold regional dominance in Alaska and Arkansas. In Hawaii, joiners are the most in-demand trade, while HVAC technicians lead in South Dakota and Delaware.

Despite Industry Uncertainty, Your Skills Are in High Demand 

Despite an uncertain economy and a construction industry that has trended down in 2025, growth in California and Texas is sustaining demand for trade workers nationwide. Overall, the best states for contractors are Illinois, Washington, and New Jersey. Nationwide, carpenters also earn high wages, and there is steady demand for electricians in the Pacific Northwest. Welders are also in demand regionally in Arkansas and Alaska. 

As opportunities expand across the country, make sure your business is ready to deliver. Eagle Woodworking provides consistent quality, dependable service, and fast lead times that contractors count on. Contact us today and see how we can help you grow.

Methodology

To determine the best states for contractors and tradesmen, this study analyzed data for all 50 states plus Washington, D.C., using nine relevant metrics.

The analysis considered:

  • Wages adjusted for cost of living across key trades, including plumbers, electricians, carpenters, and construction laborers.
  • Employment rates (employment per 1,000 jobs) for those same key trades, reflecting how common and available these roles are in each state.
  • Demand for contractors, measured by the number of approved construction projects in each state.

By combining these factors into an overall normalized score, the study ranks states based on the strength of opportunity for trades professionals, balancing earning potential, job availability, and market demand.