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"Manufacturing Skill" pertains to the Manufacturing Capacity rating in the game. This affects the number of units produced per production line (and I believe factory size) for the city. Think of it as a city's layout for producing things.
The Skill Rate has to do with Labor Skills in the city information window. And If I am not mistaken that affects branch sales, the number of vehicles produced, marketing effects, etc.
Each city.xml file you make will adjust growth rates. They all grow via the same variable, but they can also be changed via turn events attributes, although I am not sure that's implemented in the mod tools at this time.
Yeah, it is.
So the thought behind it was that the growth of all three of these variables would be in tandem. But events like wartime bombing would destroy infrastructure and manufacturing capacity at different rates.
Of course, that wasn't implemented very much when I made the maps. And all of these variables are some of the very first stuff implemented for the game ~12 years ago before I even decided to make the game public, let alone, commercial.
A refactoring probably stands to be something we should try to get funded in the Feature Bounty.