New York’s F Grade: 50 out of 51 in Construction Environment

Associated Builders and Contractors (ABC) has released its 10th annual Merit Shop Scorecard, and New York has once again found itself languishing at the bottom, ranking 50th out of 51. The state’s consistent failure to foster a healthy construction environment has earned it a resounding F grade. This ranking is based on a series of state laws, policies, and practices that stifle the construction industry and increase the cost of construction on all taxpayer-funded and private projects.

Since its inception in 2015, the Merit Shop Scorecard has graded all 50 states and the District of Columbia, focusing on how state policies promote career opportunities in construction, encourage workforce development, and ensure that taxpayer dollars are spent fairly and efficiently. Unfortunately, New York's dismal showing in this year's report is no surprise to anyone within the industry.

"Once again, New York ranks in the bottom two for supporting a healthy construction environment, and this comes as no shock to anyone who works in the field. The legislature, with Governor Hochul’s approval, continues to pass laws and enforce regulations that not only inflate the cost of construction but also discriminate against the majority of workers—more than 70%—who choose not to be unionized," said Brian Sampson, President of Associated Builders & Contractors, Empire State Chapter.

"These results reinforce that Governor Hochul, Senate Majority Leader Stewart-Cousins, and Assembly Speaker Heastie must take immediate action. It’s time to stop pushing policies that benefit a select few and start supporting the majority of hardworking construction professionals. New York’s overreliance on Project Labor Agreements and its failure to address the workers’ compensation fraud crisis is a drain on taxpayers, costing hundreds of millions annually. We’ve seen vital renewable energy and housing projects slashed or scrapped altogether because construction costs in New York are out of control. Governor Hochul and legislative leaders should be ashamed of their failure to act. They must create the conditions necessary for quality contractors to restore New York’s infrastructure and build strong, sustainable communities."

The Merit Shop Scorecard evaluates state laws, policies, and performance in seven critical areas: project labor agreements, prevailing wage laws, right-to-work laws, public-private partnerships, workforce development, career and technical education, and job growth.