Ford CEO talks labor market, lack of trade jobs, and risks to the US economy

Core Insights - The discussion highlights a significant shortage of skilled labor in essential industries, particularly in automotive repair, with approximately 1 million job openings across the economy and 6,000 technician shortages specifically at Ford [2][6][9] - The productivity of blue-collar workers has not kept pace with white-collar workers over the past 20 years, contributing to the labor shortage [3][15] - There is a societal stigma associated with blue-collar jobs, which affects the perception and attractiveness of these roles to potential workers [4][8] Labor Shortage and Economic Impact - The shortage of skilled workers is leading to longer wait times for vehicle repairs, averaging two weeks due to a lack of mechanics [6] - The construction industry is also feeling the impact, with project costs increasing from $4 billion to $5 billion due to labor shortages [13] - If the labor gap is not addressed, it could lead to inflation and delays in infrastructure projects, with current bridge construction timelines extending from 10 years to potentially 20 years [10][12] Company Initiatives - Ford is actively working on programs to address the skills gap, including apprentice programs and partnerships with trade schools [14][15] - The company aims to enhance productivity for essential workers by providing AI tools, although this requires significant investment [15][16] - Ford's CEO emphasizes the need for support from the government to reduce tariffs on imported parts, which currently add up to a $2 billion cost burden [16][20] Electric Vehicle Market Insights - The demand for electric vehicles (EVs) is not as high as anticipated, with consumers reluctant to pay a premium for larger battery models [21][22] - Ford is adapting its strategy to focus on affordable EVs, targeting a price point of $30,000 to attract buyers [24] - The competitive landscape includes significant challenges from companies like BYD, which have strong government support and established intellectual property [23][24]