Quick summary of MIE Solution’s Manufacturing Labor Shortages Report:
- New research from MIE Solutions reveals where manufacturing hiring pressure is set to be most acute across the United States in 2026.
- By analysing manufacturing-specific job postings on Indeed and comparing them against official Bureau of Labor Statistics (BLS) employment figures, we created a Job Posting Intensity Index – showing how aggressively employers are hiring relative to the size of each state’s manufacturing workforce.
- The findings point to a widening mismatch between labor demand and available talent, with smaller and mid-sized manufacturing states experiencing higher hiring pressure than traditional industrial powerhouses.
The State of U.S. Manufacturing in 2026
U.S. manufacturing has entered 2026 under growing structural strain. While federal reshoring incentives, infrastructure spending, and supply chain realignment continue to support domestic production, workforce availability has emerged as the defining constraint on growth.
Industry research consistently suggests that the U.S. manufacturing sector could face 1.5-2 million unfilled roles by the early 2030s, driven by:
- An ageing skilled workforce and retirements
- Underinvestment in vocational and technical training
- Rising demand for advanced manufacturing and maintenance skills
- Geographic mismatches between jobs and talent pools
Against this backdrop, manufacturers are hiring aggressively, but not evenly, across the country.
Introducing the Manufacturing Job Posting Intensity Index
To understand where labor pressure is most pronounced, MIE Solutions analyzed manufacturing-specific job listings on Indeed and benchmarked them against state-level manufacturing employment data from the BLS.
The result is a Job Posting Intensity score, calculated as the number of manufacturing job postings per 1,000 manufacturing employees.
Rather than showing raw job counts, this metric highlights where employers are competing hardest for talent relative to the size of the existing workforce – a key predictor of labor shortages in 2026.
Where manufacturing hiring pressure is highest in the U.S.
Virginia: A small workforce under outsized pressure
Virginia emerges with one of the clearest indicators of mounting labor strain.
- Manufacturing workforce (BLS): ~237,200
- Job posting intensity:83 per 1,000 jobs
Despite not being a traditional manufacturing heavyweight, Virginia’s elevated hiring intensity reflects growing demand across defense manufacturing, advanced materials, and specialized production tied to federal supply chains.
According to the National Association of Manufacturers (NAM), Virginia manufacturers are already reporting difficulties hiring skilled production workers, machinists, and maintenance technicians, particularly in regions supporting defense and aerospace supply chains.
With a relatively modest manufacturing workforce, even moderate hiring surges quickly translate into higher competition for skilled labor. Without expanded training pipelines, manufacturers operating in Virginia are likely to face prolonged vacancies and upward wage pressure through 2026.
Montana: High demand, limited depth
Montana ranks among the highest states for job posting intensity, despite having one of the smallest manufacturing workforces in the country.
- Manufacturing workforce (BLS): ~20,200
- Job posting intensity:14 per 1,000 jobs
Manufacturing in Montana is concentrated in food processing, wood products, and niche industrial manufacturing. These sectors rely heavily on experienced operators and maintenance staff, but the state’s rural geography and limited training infrastructure restrict talent mobility.
Research from the U.S. Chamber of Commerce highlights that rural manufacturing states face some of the tightest labor markets in the country, with lower workforce participation rates amplifying skills shortages.
Vermont: Specialization creates pressure
Vermont’s manufacturing sector is small but highly specialized, contributing to elevated hiring intensity.
- Manufacturing workforce (BLS): ~26,900
- Job posting intensity:97 per 1,000 jobs
Precision manufacturing, medical devices, and advanced materials dominate the state’s industrial base. While these sectors offer higher productivity, they also require specialized skills that are difficult to replace.
A recent Deloitte study on U.S. manufacturing talent notes that states with specialized production profiles are more exposed to shortages when experienced workers retire, as replacement pipelines are narrower and slower to develop.
National patterns show intensity over scale
Looking across all states, a clear pattern emerges: labor pressure is often greatest where manufacturing workforces are smaller or highly specialized.
States such as Montana, Vermont, and New Hampshire rank among the highest for job posting intensity, despite posting far fewer total roles than states like Texas or California. This suggests that employers in these regions are drawing from shallower talent pools.
Conversely, large manufacturing states, including Texas, California, and Ohio, show lower intensity scores, not because demand is weaker, but because their vast workforces dilute the impact of new vacancies.
This divergence highlights a critical risk for 2026: headline job growth does not always align with workforce capacity.
Where manufacturing hiring pressure is lowest in the U.S.
While high job posting intensity flags immediate labor strain, low intensity does not necessarily mean healthy labor markets. In many cases, it reflects slower hiring, limited investment, or structural constraints on manufacturing growth.
Hawaii: Limited scale and high barriers
Hawaii sits at the bottom of the index.
● Manufacturing workforce (BLS): ~13,100
● Job posting intensity: 0.23 per 1,000 jobs
High energy costs, geographic isolation, and limited industrial land availability constrain manufacturing in Hawaii. According to the U.S. Energy Information Administration, Hawaii consistently records the highest electricity prices in the country, making large-scale manufacturing economically challenging.
As a result, manufacturers tend to limit expansion, suppressing both job creation and posting volumes.
Alaska: Geographic and logistical constraints
Alaska’s low job posting intensity reflects structural barriers rather than labor abundance.
● Manufacturing workforce (BLS): ~12,900
● Job posting intensity: 0.23 per 1,000 jobs
Manufacturing activity is largely tied to resource processing and local demand, with high transportation and infrastructure costs limiting broader industrial growth. Research from the Bureau of Economic Analysis shows that Alaska’s manufacturing sector has remained relatively flat for over a decade.
This results in fewer new roles being created, rather than a surplus of available talent.
New Jersey: Mature industry, cautious hiring
New Jersey’s manufacturing base is sizable but mature, contributing to lower relative hiring pressure.
- Manufacturing workforce (BLS): ~257,700
- Job posting intensity:33 per 1,000 jobs
Legacy pharmaceutical, chemical, and food manufacturing dominate the state’s industrial landscape. While highly productive, these sectors are capital-intensive and less labor-hungry than advanced assembly or fabrication industries.
According to McKinsey research on U.S. manufacturing productivity, mature industrial states often see slower hiring growth as automation offsets the need for large headcount increases.
What job posting intensity reveals about future manufacturing shortages
High job posting intensity is an early warning signal of potential labor shortages. States with elevated scores are more likely to experience:
- Longer time-to-hire for skilled roles
- Rising wage inflation for machinists, maintenance technicians, and engineers, leading to higher costs for business leaders
- Increased reliance on overtime, contractors, or automation – an expensive and temporary fix that compounds over time
- Delayed expansion or costly reshoring projects
In contrast, states with lower intensity but high absolute demand may still face shortages (particularly in advanced and maintenance-heavy roles) but benefit from deeper labor markets and established training ecosystems.
The manufacturing skills most at risk in 2026
Across the dataset, demand is increasingly concentrated in roles that are both manufacturing-specific and skills-intensive, including:
- CNC machinists and operators
- Maintenance and reliability technicians
- Manufacturing and process engineers
- Production supervisors and schedulers
These positions are among the hardest to automate fully and require years of hands-on experience, making short-term fixes difficult.
As older workers retire, the pipeline of replacements remains thin in many states, particularly outside major manufacturing hubs.
U.S. Manufacturing Workforce Age
| Age group | Workers (thousands) | Percentage of workforce |
| 16 to 19 years | 215 | 1.40% |
| 20 to 24 years | 980 | 6.50% |
| 25 to 34 years | 3,277 | 21.80% |
| 35 to 44 years | 3,355 | 22.30% |
| 45 to 54 years | 3,294 | 21.90% |
| 55 to 64 years | 3,001 | 20.00% |
| 65 years and older | 902 | 6.00% |
| Total 55+ (Retirement Eligible) | 3,903 | 26.00% |
(Source)
But why does this matter?
For manufacturers, labor availability is no longer a secondary consideration behind cost or tax incentives. Instead, workforce sustainability is fast becoming the primary constraint on growth.
States with high job posting intensity face a difficult trade-off:
- Compete harder and pay more for scarce talent
- Invest earlier in automation and digital systems
- Build long-term training partnerships to stabilise hiring
Those that fail to adapt risk being locked out of growth opportunities despite favourable market demand.
Strategic responses to labor pressure
- Invest early in automation and ERP
Manufacturing management software and ERP systems can help offset labor constraints by improving scheduling efficiency, reducing rework, and maximizing output per employee.
Automation does not eliminate the need for skilled workers, but it allows manufacturers to scale output without scaling headcount at the same rate.
- Strengthen regional talent pipelines
States with the most acute labor pressure will increasingly rely on:
- Apprenticeships and technical college partnerships
- Cross-training programs for existing employees
- Clear progression paths to retain mid-career workers
- Rethink location strategy
For manufacturers considering expansion in 2026, labor availability should be weighted as heavily as energy costs or real estate prices. A lower-cost location with chronic hiring shortages may ultimately prove more expensive over time. For a full breakdown of the best states to launch a manufacturing business, visit Cost of Manufacturing report.
Dean Dunagan for MIE Solutions commented:
“The data shows that the fight for manufacturing talent is no longer confined to the traditional industrial hubs. In many states, employers are competing for a shrinking pool of skilled workers at the same time as production demands are increasing. That tension is only going to intensify as we move through 2026.
“For U.S. manufacturers, staying competitive now means thinking beyond headcount alone. Globally, they’re up against countries investing heavily in automation and digital manufacturing, while domestically they’re facing wage pressure, retirements, and skills gaps that can’t be solved overnight.
“Technology is increasingly the great leveler. Manufacturers that use data, automation, and modern manufacturing management systems to maximize output from existing teams are far better positioned to absorb labour shortages and compete on a global stage. The winners will be those who focus on doing more with the resources they already have, while building resilient, future-ready operations.”
Methodology
MIE Solutions analyzed manufacturing-specific job postings on Indeed across all 50 U.S. states, using tightly defined role searches to exclude non-manufacturing positions.
Due to platform display limits, results reflect the number of listings surfaced by Indeed at the time of analysis rather than total vacancies.
Job posting figures were benchmarked against state-level manufacturing employment data from the U.S. Bureau of Labor Statistics to calculate a Job Posting Intensity score, expressed as job postings per 1,000 manufacturing employees.
The index is designed to show relative hiring pressure, not absolute job totals, and provides insight into where labor shortages are likely to be most acute heading into 2026.
