Though still receiving high marks for having policies favorable to construction companies, Louisiana tumbled to No. 6 on the Associated Builders and Contractors’ annual “Building America: The Merit Shop Scorecard.”
The scorecard takes stock of states that have created a free enterprise-based environment that allows construction companies to succeed. Louisiana ranked No. 1 in 2016.
This year, the state earned A’s in categories like project labor agreements, prevailing wage, right to work, public-private partnerships and workforce development incentives.
It fared poorer in the categories measuring the state’s 5-year job growth rate—Louisiana’s is 3.2%—and in career & technical education, earning C and D grades, respectively.
National averages in those categories were B’s and C’s.
ABC says the merit shop philosophy is the belief that people and companies succeed based on free enterprise principles within a free market system characterized by open and fair competition and diverse participants.
“We believe that the Merit Shop Scorecard can help promote policies that will attract additional business investment and benefit state economies as a whole by providing valuable information for policymakers, contractors, construction users and other industry stakeholders while focusing on specific areas where strategic improvements can be made,” Ben Brubeck, ABC vice president of regulatory, labor and state affairs, says in a statement.
Virginia tops the ranking as the state with the No. 1 construction business climate, receiving A’s in every category except for job growth. It earned a D in that category. Last year, Virginia ranked No. 2.
