CEO of Union Pacific: the US economy remains resistant, consumer demand remains strong

The CEO of Union Pacific (UNP), Jim Vena, says that the US economy is still resistant, even if some cracks begin to show.

“The consumer, of everything we see, is still strong at this time,” Vena told Yahoo Finance at the Procerate of Ford conference in Detroit, Mich. “They are still in expenses, they are still moving.”

Pressing about whether a slowdown is underway, the vein recognized weakness in parts of the economy, but emphasized a broader force.

“In specific segments, there are, you can see that,” he said. “But elsewhere it moves very well.” Some of these segments include houses, which are not sold to the rhythm they were before, he said.

When asked about the hiring of challenges, a common chorus of executives in all industries, Vena went back.

“Due to the type of jobs we have, we really have no problems attracting people,” he said. “We attract people who want to work where a supervisor does not direct them all the time.”

Vena added that Union Pacific hires “in all areas”, of locomotive engineers, directors, technicians and even lawyers. Veterans represent 18% of their workforce, he said.

The Railway Company based in OMAHA, NEB., Employ more than 32,000 people. Vena, who once operated is trained, says that the solid hiring reflects the benefits of competitive compensation and how the company treats its employees.

Separately, the vein framed tariff policies and Trump administration fee to boost national manufacturing as a positive net. “If you can have more Americans working with more options and more products manufactured in the United States of America, it is excellent for the economy, it is excellent for workers, and will attract more people who are not working, which today are not part of the workforce.”

There is still room for the United States workforce to grow, he added.

Vena also highlighted technology as a key driver of productivity throughout the railway industry. “You should always observe how you could be more productive using technology,” he said, pointing out innovation in the United States as the driving force behind the progress of companies.

Not everyone shares vein optimism. The Evercore Isi analyst Jonathan Chappell wrote that although the Union Pacific network works well, the profits throughout the industry face pressure from the weakest costs and volumes.

“The 3Q volumes were not based on the decent 1H trend line,” he wrote, adding that the profit perspective throughout the sector has become “much more silenced.”