This paper examines skilled labor dynamics for manufacturing firms in a region of rapid economic transformation. Evidence from a recent survey of manufacturers within the Charlotte, North Carolina metropolitan area suggests that for many firms, the skilled labor shortage is a serious competitive concern, especially with regard to high-end positions. Firms located in regions with the greatest job losses in manufacturing are also among those that see the labor shortage as a salient competitive concern. Further results indicate that advanced manufacturers accord importance to higher education institutions as recruitment and training sources. Policy implications of this issue and its future impacts on manufacturing are discussed.