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Manufacturing Employers

Work experience is key

Compared to a sample of employers in all industries (“average employers”), manufacturers pointed to a distinct pattern of hiring challenges — leading with employability and technical skills rather than a shortage of applicants — and relied more on work experience, hands-on training, and community college and workforce board partnerships.


Manufacturing Similarities to Average Employers

Manufacturers were similar to average employers in several ways:

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Differences from Average Employers

1. Manufacturers placed employability skills and a lack of technical skills as their top reasons for hiring difficulty and a low number of applicants landed in the lower half of reasons.

Reasons for Entry-Level Hiring Difficulty: Manufacturing vs. Average Employer
% of employers who reported difficulty — respondents could select all that apply
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q7: “Which of the following factors contributed to your entry-level hiring difficulties?” * Statistically significant difference from the average employer at the 95% confidence level.
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2. Work experience/demonstrated skills were more frequently important to manufacturers than average employers.

Credential Importance: Manufacturing vs. Average Employer
% rating as important or very important
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q5: “When hiring entry-level workers, how important are these credentials?” * Statistically significant difference from the average employer at the 95% confidence level.
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3. In the past two years, more manufacturers increased emphasis on work experience and certifications relative to the average employer.

Changes to Hiring Requirements: Manufacturing vs. Average Employer
% reporting increased emphasis in the past two years
75%Average employer
65%*Manufacturing
reported no significant changes to hiring requirements
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q20: “In the past two years, has your business made any of the following changes to credential or hiring requirements?” * Statistically significant difference from the average employer at the 95% confidence level. “Other” responses are not depicted.
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4. Manufacturers were more likely to partner with community colleges or a local NCWorks Career Center or Workforce Board.

Business Partnerships: Manufacturing vs. Average Employer
% reporting a partnership in the past 12 months
NC Department of Commerce, Labor and Economic Analysis Division (LEAD) Source: 2026 NC Employer Needs Survey (LEAD / NCWorks Commission). Q22: “In the past 12 months, has your business partnered with any of the following organizations?” * Statistically significant difference from the average employer at the 95% confidence level.
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What This Says About Manufacturing

The lower likelihood of encountering a low number of applicants as a hiring difficulty runs counter to a common assumption about the industry and previous survey data. A 2025 story from NPR reports that manufacturing is struggling to fill positions, in part because it is seen as a dying industry. However, in 2024, 57% of manufacturers cited a low number of applicants as a hiring difficulty, compared to the current 40%. It is unclear what drove this unexpected decline, but it will be interesting to see if this change is here to stay.

Beyond this, the differences between Manufacturing employers and businesses in general may stem from the importance of on-the-job learning rather than time in the classroom. Manufacturers were less likely to assign importance to credentials than average employers, while placing significantly more weight on work experience and demonstrated skills.

This also likely contributes to hiring difficulties: manufacturers were significantly more likely to say applicants lacked technical and employability skills. That being said, this sector seems to be already familiar with work-based learning as a strategy for growing talent. Manufacturers offered apprenticeships at significantly higher rates and partnered more often with community colleges and NCWorks Career Centers than businesses overall. For more strategies to develop and retain skilled workers, read through our full report via the link below.

Explore the Full Data

| Download the full report (PDF) | Visit the LEAD website