Ford CEO Jim Farley Calls for Skilled Labor and Improved Conditions to Rebuild U.S. Manufacturing

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Ford CEO Jim Farley is warning that America’s manufacturing strength depends on more than factories and equipment. Speaking at the Aspen Ideas Festival, Farley said governments and companies need to invest in skilled trades, competitive wages, and stable working conditions to attract the next generation of factory workers. Farley’s message reflects growing concern that younger workers are turning away from manufacturing jobs, leaving companies short-staffed despite high demand for domestic production. Farley pointed to European countries like Germany as a model, where trade education starts in junior high and every factory role is backed by years of formal training.

Wages and Work Conditions Under Scrutiny

Farley’s remarks come amid continued debate over worker pay in U.S. manufacturing. During union contract negotiations in 2023, employees told the Ford CEO that younger workers often hold multiple jobs and face burnout. Some workers reportedly clocked into Amazon for an eight-hour shift before reporting to a seven-hour Ford shift, leaving only three to four hours for sleep.

The vehicle manufacturer’s latest agreement with the United Auto Workers (UAW) included steps to address those concerns. Under the new terms, temporary workers become eligible for full-time status after two years, which means higher wages, profit-sharing, and health care benefits. The company also agreed to a 25% wage increase over the contract period, pushing top hourly pay for veteran workers to $42 per hour.

Entry-level wages at Ford, however, still lag behind the national average. Manufacturing jobs in the U.S. pay an average of $25 per hour, translating to roughly $52,000 annually. That remains well below the U.S. median household income of $66,600 and largely contributes to workers’ reluctance in accepting jobs at Ford.

Ford CEO Urges Broader Industrial Policy Shift

Farley also emphasized that solving labor challenges requires more than company-level decisions. He called on policymakers to expand trade school programs, support skilled trades, and develop incentives to retain talent in critical industries.

Farley also addressed global competition, warning that U.S. automakers face disadvantages when rival companies operate with strong government backing. To level the playing field, he has cautiously supported targeted tariffs on foreign components that threaten domestic jobs, while still advocating for global supply chain flexibility. “Our governments have to get serious about trade education,” Farley said. “In Germany, every factory worker has an apprentice starting in junior high. We need that system here.”

Balancing Pay, Productivity, and Policy

Despite Ford’s efforts to enhance worker benefits, tensions remain between the company, labor groups, and policymakers. Farley described last year’s UAW strike as “completely unnecessary” but acknowledged that wage growth and workforce stability are linked to America’s broader manufacturing goals.

Ford remains the largest employer of UAW members, making its labor policies a high-profile test case for the industry. Farley insists that rebuilding the U.S. industrial base requires alignment between companies, workers, and government leaders.

With over 3.8 million new manufacturing jobs projected by 2033, retaining young talent is essential. Farley believes competitive wages, stable working conditions, and stronger trade education can keep the sector globally competitive, but he warns that companies cannot act alone. “We’re not just hoping it gets better,” Farley said. “We have the resources and the know-how to solve these problems, but it takes collaboration.”

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