Ford CEO Jim Farley has touched on the subject of skilled trade in the U.S. and the many opportunities it’s facing on several occasions as of late, which he sees as a huge problem. This is due to the fact that many industries rely heavily on skilled tradesworkers, but there’s a shortage of folks interested in becoming just that, which threatens the very future of the economy. As Ford Authority reported last week, Farley plans to meet with a group of leaders at the upcoming Ford Pro Accelerate event at the end of September to discuss potential solutions to this problem, and now, he’s touching on that same subject yet again.
In a recent piece published in Time magazine, Farley points out that many believe artificial intelligence will replace a lot of jobs, but adds “I can’t help thinking about the work A.I. can’t replace: the millions who primarily work with their hands. That includes tens of thousands of Ford hourly employees and skilled tradespeople who make our manufacturing system run every day and the millions who use our commercial trucks and vans to get their work done.”
As Farley points out, the white collar economy has grown by 28 percent over the past eight years due to the emergence of new tech, but the “essential economy,” as he calls it, has actually declined over the same period, while productivity is down as well. Trouble is, that sector helps sustain three million businesses in the U.S. and delivers $12 trillion in GDP, so the fact that its future is in danger could spell doom for the economy, in general. In terms of how that can be fixed, Farley has a few ideas.
“First, we need to get serious about workforce development. America is suffering major workforce shortages in essential industries,” he said. “For too long, we’ve treated workforce development programs as a form of welfare for the recently unemployed. Instead, we should learn from the successful model of federal R&D funding—and see workforce development as a powerful investment in the Essential Economy. When we train workers, we should prepare them for the economy of 2050, not 1950. In order to achieve these goals, we need to cut red tape at the federal, state, and local levels.”
Comments
I think Mr. Farley should be focused on “essential quality” of Ford produced vehicles. Rather than the essential economy . Let President Trump worry about the economy.
I think that’s what he’s worried about.
Yeah Farley will train employees based on the buddy system. Not qualify on a test.. they did this before not who you know but who you blow. Half quit.
The workers he is looking for are in High School, they need training programs and support! Does a farmer look at a field and expect crops to grow? No, he fertilizes, plows, plants seeds and tends his crops for a good harvest!
Fortunately, the enrollment in many trade schools is, and has been on the rise. These shifts though take time to manifest. Our car club as part of our community outreach, has visited many local trade schools, and the staff at each agrees with the ever increasing numbers.
Very insightful comment by JF. These positions are the backbone of our present and future economic productivity. We need continued investment in hiring, training, and proper compensation for these essential positions.
Jim Farley is on point. One issue is that the Federal Government has no clue as to the essential worker needs and specific skilled trades required to support economic activity today and into the future. The federal government is destroying public education and have no plans to fund vocational trade schools etc. The solution is going to come from companies like Ford and others to collaborate on funding the programs required and working with local communities to identify the young talented and interested candidates for the these skilled positions.
Maybe it’s because they didn’t hire apprentices for 30 years and now all all of a sudden they need new recruits in the system that had been disbanded.
In California over the past few decades innumerable middle & high schools have been throwing out all the shop equipment in the dumpster remodeling the shops into classrooms. The academia’s running these school systems say they want the students to all pursue college prep on a path to becoming professionals in the workplace, not tradespeople.
Deeds, not words….Jim.
Do better