- In today’s CEO Daily: Inside a plan to find the next generation of workers.
- The big leadership story: When companies threaten to move
- The markets: Mostly up to close out the month.
- Plus: All the news and watercooler chat from Fortune.
Good morning from Detroit, where I am moderating a conversation with several CEOs this afternoon at the Ford Pro Accelerate summit. The focus is not on the next generation of products, but on what it will take for the next generation of workers to build them. With at least 2.1 million skilled trades jobs likely to go unfilled by 2030, Ford CEO Jim Farley decided last year to bring together leaders to talk about how to boost the “essential economy.”
Now, Ford is back for a second year with more data, a dashboard, and a plan to address the problem. Part of that plan was forming the “Alliance for America’s Skilled Trades” in July with BlackRock, Google, and Carhartt. This morning, the group released “The State of America’s Skilled Trades: A National Report,” in partnership with Jobs for the Future and Burning Glass Institute. Its analysis of 124 skilled trades occupations nationwide found that the U.S. will likely have 1.7 million skilled trades job openings every year through 2035, with current training programs producing just 55 workers for every 100 needed. Some of those openings will be the result of growth and retirement, but about 600,000 will be net-new jobs in areas like AI, advanced manufacturing, and energy.
There is a logic to Farley positioning Ford Pro as a force in supporting skilled trade workers. It is the automaker’s commercial business arm, selling trucks, vans, software subscriptions, and a range of services to customers experiencing the skills shortage firsthand. It is also Ford’s most profitable operating business, giving Ford both the credibility and the incentive to tackle one of America’s toughest competitive issues.
One challenge, of course, is that most kids don’t grow up aspiring to be an HVAC technician or construction worker. Most high school guidance counselors promote four-year college degrees over trade apprenticeships because the former were traditionally viewed as the route to stable, high-paying jobs. And only half of those who enroll in such training programs manage to finish, often thwarted by cost, transportation, and childcare needs.
Ford has partnered with Bloomberg Philanthropies to pilot a new auto tech program in Detroit Public Schools and teamed up with Lyft to help SkillsUSA students get to their training and apprenticeship programs. It also commissioned research from the Ad Council to understand how students, parents, and teachers view skilled trades. And yesterday, Farley joined Jamie Dimon of JPMorgan Chase, Michigan Gov. Gretchen Whitmer, and officials from Michigan Central and Newlab to launch a public-private initiative to invest in innovation called Michigan LIFT(Launchpad for Industrial Innovation & Transformation).
Ford may be steering these initiatives, but it’s not driving them on its own. The Alliance will announce new members today. And I think there is no better place to hold this discussion than Detroit, a city that gave birth to the automobile industry and a new middle class in the last century—and one that’s a testament to the power of reinvention and entrepreneurship in this one.
We will be continuing the discussion here on Nov. 16 and 17 at the Fortune 500 Innovation Forum. I’ll be joined by an editorial team that includes Alyson Shontell, Fortune’s editor-in-chief and chief content officer, along with fellow journalists Ellie Austin, Allie Garfinkle, Andrew Nusca and Jeremy Kahn, as well as my co-chairs, Lee Clifford and Kristin Stoller. I’m excited to be partnering with the U.S. Chamber of Commerce, the Ford Foundation, Just Capital, Points of Light, and the Michigan Economic Development Corporation. If you’re interested in joining the conversation, find out more here. Contact CEO Daily via Diane Brady at [email protected]
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