Consumer activity remains strong despite slowdowns
Union Pacific CEO Jim Vena expressed confidence in the strength of the U.S. economy, despite acknowledging some signs of weakness. Speaking at Ford’s Pro Accelerate conference in Detroit, Vena said the American consumer remains active and continues to drive spending and movement across sectors.
“The consumer, from everything we see, is still strong at this point,” Vena said. “They are still out there spending, they’re still out there moving.” While he admitted that some areas of the economy — such as the housing market — are showing signs of slowdown, he emphasized that others continue to perform well.
Hiring remains steady across the railroad giant
Addressing labor market challenges, Vena noted that Union Pacific does not face major hiring issues. “Because of the type of jobs we have, we really don’t have a problem attracting people,” he explained. The company offers roles ranging from locomotive engineers to lawyers and employs over 32,000 people nationwide.
Vena highlighted the appeal of the work culture and compensation, stating that many applicants are drawn to roles that offer independence and purpose. Veterans comprise 18% of Union Pacific’s workforce, underscoring the company’s broad recruitment strategy and appeal.
Support for reshoring and domestic growth
Vena also endorsed the Trump administration’s policies aimed at encouraging domestic manufacturing and reshoring. He argued that policies promoting U.S.-based production and employment are ultimately good for the economy and workers. “If you can have more Americans working with more options and more products made in the United States, it’s great for the economy and the workforce,” he said.
He added that there is still room for the U.S. workforce to grow, and emphasized that increased domestic production could attract more individuals back into the labor force.
Tech innovation key to long-term competitiveness
Union Pacific is betting on technology to maintain productivity and efficiency in the railroad industry. Vena stressed that embracing innovation is essential. “You always have to be looking at how you could become more productive using technology,” he said. He credited American innovation as a key driver of progress within the industry.
Still, analysts are more cautious. Evercore ISI analyst Jonathan Chappell noted that while Union Pacific’s network is performing solidly, the industry as a whole is feeling pressure from cost inflation and softening freight volumes. Third-quarter numbers failed to build on momentum from earlier in the year, signaling potential challenges ahead.
