Ford CEO Jim Farley: The Essential Economy's Productivity Gap Should Worry Us
10 days ago
- #Productivity Gap
- #Workforce Development
- #Essential Economy
- The author worked at Hill and Vaughn, a classic-car restoration shop, during business school, gaining hands-on experience in car interiors and mechanics.
- The 'Essential Economy' comprises 95 million workers in industries like construction, agriculture, and manufacturing, contributing $12 trillion to GDP.
- Productivity in the Essential Economy has declined, while white-collar productivity surged by 28% over eight years.
- Workforce shortages in essential industries are critical, with auto techs, construction workers, and manufacturing employees in high demand.
- The author advocates for increased investment in workforce development, similar to federal R&D funding, to close the productivity gap.
- New technologies like augmented reality and robotics can enhance productivity for hands-on workers.
- Reducing bureaucratic delays in infrastructure and manufacturing projects is essential for progress.
- Ford is hosting a summit on the Essential Economy to discuss solutions with leaders from business, technology, and government.
- Ignoring the Essential Economy could lead to higher costs in housing, groceries, and other essentials.
- The author calls for making the Essential Economy a national priority to ensure economic stability and growth.