15 Jul Modernizing the Manufacturing Workforce: What Employers Need to Know About Evolving Skill Gaps
North Carolina manufacturing has changed sharply over the past three decades. Textile mills, apparel plants, and furniture factories once accounted for more than 40 percent of the state’s manufacturing jobs. By 2022, those industries employed 13.6 percent of manufacturing workers.
Between 1993 and 2022, employment in textile mills fell 85 percent. Apparel employment fell 94.4 percent, and furniture employment fell 59.4 percent, according to the North Carolina Department of Commerce. At the same time, output has continued to rise. Real gross domestic product per manufacturing worker more than doubled between 1998 and 2021. It reached $182,287 per worker, more than twice the state average across all industries. Growth occurred in transportation equipment, computer and electronic products, machinery, and other durable goods. These industries rely more heavily on automated systems and technical processes. They also require workers with skills that many older production jobs did not.
The occupational data shows similar labor market shifts. Production employment in North Carolina manufacturing fell by about 132,000 jobs between 2001 and 2022. This was a 35 percent decline and the largest decrease among manufacturing occupation groups. Textiles, apparel, furniture, and tobacco manufacturing were concentrated in many rural counties. In some communities, one furniture plant, for instance, supports a large share of local jobs and business activity and a shift from traditional to innovative and automated manufacturing could impede economic mobility and household economic stability. Manufacturers now need more workers who can operate, program, maintain, inspect, and repair advanced equipment.
However, most of the industries that expanded are closer to metropolitan areas. Training institutions are also more concentrated near larger population centers. This gives metro areas an advantage when employers need workers with specialized credentials. National data show a persistent education gap. In 2000, the share of adults with a bachelor’s degree was 11.4 percentage points higher in metropolitan areas than in nonmetropolitan areas. By 2023, the difference had increased to 15.3 percentage points, according to the United States Department of Agriculture Economic Research Service.
This shows that a bachelor’s degree is not necessarily the only measure of manufacturing readiness. Employers also look for training in mechatronics, industrial maintenance, welding, machining, automation, and quality assurance. Workers in rural communities may have fewer nearby options for earning these credentials. Transportation, limited class schedules, instructor shortages, and the cost of specialized equipment can reduce access.
Mecklenburg County produced $186.1 billion in total economic output in 2024. Its inflation adjusted gross domestic product increased from $141.4 billion in 2023 to $146.2 billion in 2024, according to the United States Bureau of Economic Analysis. The Charlotte Concord Gastonia labor market shows where manufacturing demand is moving. In May 2025, production occupations accounted for 5.6 percent of regional employment and paid an average of $24.09 per hour. Installation, maintenance, and repair occupations accounted for 4.2 percent of employment and paid an average of $29.90 per hour. The wage difference reflects the value of workers who keep automated systems operating. The region employed 4,410 industrial machinery mechanics, 2,940 machinists, 3,690 welders, 760 computer numerically controlled tool operators, 290 computer numerically controlled tool programmers, and 5,040 inspectors, testers, sorters, samplers, and weighers. These occupations support manufacturing, transportation, logistics, construction, energy, and other industries across the region.
Mecklenburg County has a highly educated population. Among residents age 25 and older, 90.8 percent have completed high school and 49.2 percent hold a bachelor’s degree or higher. These figures do not fully measure readiness for advanced manufacturing jobs. Many occupations require hands on training with programmable equipment, industrial electrical systems, mechanical repair, welding, precision machining, and quality control. Community colleges, apprenticeships, employer training, and industry certifications help workers gain these skills. Metro areas can usually support more programs because they have more employers, instructors, students, and equipment. Rural areas may need regional training centers, mobile labs, shared equipment, transportation assistance, and partnerships that serve several counties.
North Carolina still has a large manufacturing base, but the work has changed. Training systems need to reflect the jobs employers are filling now. That requires more technical programs, stronger employer partnerships, and better access in communities with fewer training resources.
Charlotte Works organizes its advanced manufacturing career map around production, engineering, quality assurance, and maintenance. The map connects job seekers to occupations such as machinist, welder, industrial mechanic, and mechatronics technician. Its Eligible Training Provider List requires training programs to connect with local demand and recognized credentials. A targeted technical credential can provide a direct entry into a manufacturing career and an opportunity for reskilling on the job.
By Akofa Dossou, Senior Economic Analyst
References
North Carolina Department of Commerce. Not Your Grandfather’s Manufacturing: How North Carolina Industry Has Changed Since the 1990s. https://www.commerce.nc.gov/news/the-lead-feed/not-your-grandfathers-manufacturing
United States Department of Agriculture, Economic Research Service. Rural Education. https://www.ers.usda.gov/topics/rural-economy-population/employment-education/rural-education
United States Bureau of Economic Analysis, via the Federal Reserve Bank of St. Louis. Gross Domestic Product: All Industries in Mecklenburg County, North Carolina. https://fred.stlouisfed.org/series/GDPALL37119
United States Bureau of Economic Analysis, via the Federal Reserve Bank of St. Louis. Real Gross Domestic Product: All Industries in Mecklenburg County, North Carolina. https://fred.stlouisfed.org/series/REALGDPALL37119
United States Bureau of Labor Statistics. Occupational Employment and Wage Statistics, Charlotte Concord Gastonia, May 2025. https://www.bls.gov/oes/2025/may/oessrcma.htm
United States Census Bureau. QuickFacts, Mecklenburg County, North Carolina. https://www.census.gov/quickfacts/fact/table/mecklenburgcountynorthcarolina/EDU635224
Charlotte Works. Advanced Manufacturing Career Map. https://www.charlotteworks.com/mycareer/career-maps/advanced-manufacturing/
Charlotte Works. Training Providers and Eligible Training Provider List Requirements. https://www.charlotteworks.com/services/training-providers/