Global supply chains have faced unprecedented disruptions in recent years, prompting companies like Ford to prioritize resilience in their logistics networks. Pandemic-related shortages of semiconductors and consumer goods were just the beginning. Today, additional pressures include geopolitical tensions, tariffs, extreme weather events, rising energy and raw material costs, and persistent labor shortages across essential sectors such as construction, manufacturing, utilities, and transportation.
The labor gap is particularly acute. In July, the National Association of Manufacturers reported 437,000 unfilled manufacturing jobs, while Associated Builders and Contractors projected a need for nearly 500,000 new construction workers by 2026. These shortages compound existing infrastructure challenges, which are undermining productivity and increasing costs.
According to research from the Aspen Institute, labor productivity in road, highway, and bridge construction has dropped 22 percent since 2017. Similarly, the pace of high-voltage transmission line installation has slowed dramatically—now just one-eighth of what it was two decades ago—despite growing electricity demand. These delays hinder the nation’s ability to respond effectively to natural disasters and other supply chain shocks.
Cost inefficiencies are another major concern. U.S. infrastructure projects are significantly more expensive than those in other developed nations. For example, transit construction costs are 2.5 times higher than the average among OECD countries, affecting both domestic industries and international competitiveness.
Permitting processes have also become increasingly burdensome. The average time to complete an environmental impact statement has risen from 3.4 years in the 1990s to 4.8 years recently, with report lengths ballooning from 414 pages in the late 1970s to over 1,700 pages between 2013 and 2017. Litigation under the National Environmental Policy Act (NEPA) adds further delays, with a median resolution time of 23 months. Project developers must navigate a complex web of federal and state agencies, each with separate requirements.
To mitigate these risks, Ford encourages suppliers to adopt dual-facility manufacturing strategies, enhancing redundancy and reducing vulnerability. The company is also integrating artificial intelligence and advanced analytics to anticipate disruptions rather than merely reacting to them. AI tools are already optimizing freight routes and reducing waste in trucking, and are now being applied to accelerate approvals for energy infrastructure projects.
Initiatives like the ‘PermitAI’ prototype, developed by the Pacific Northwest National Laboratory, aim to automate impact modeling for NEPA reviews. Meanwhile, PJM Interconnection, which manages the largest U.S. power grid, is collaborating with Google and Tapestry to use AI in streamlining the integration of new energy sources.
In April, the White House issued an executive order urging federal agencies to leverage technology to modernize environmental reviews and permitting, aiming to bring these processes into the 21st century. Such reforms, combined with public-private collaboration, could replicate the success of past national infrastructure efforts, such as the interstate highway system.
Ford remains committed to strengthening the domestic automotive supply chain, particularly by supporting small and medium-sized suppliers. With strategic planning, technological innovation, and coordinated action, the U.S. can build more resilient supply networks and sustain growth in its essential industries.
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How Supply Chain Health is Essential to Our Nation’s Economic Growth
In recent years, global supply chains have faced a staggering variety of disruptions. That’s why Ford is focused on building a supply chain that is as durable and capable as our Built Ford Tough promise to truck customers. n nWhat kind of disruptions? Best-known are probably the widespread pandemic-related shortages of everything from household paper products to semiconductors. But today’s supply chains are grappling with other challenges as well. n nThese include global geopolitical tensions, including tariffs, more frequent extreme weather events and natural disasters, and rising costs for energy, fuel, and raw materials. n nMeanwhile, Essential Economy industries — such as construction, manufacturing, utilities, logistics, and transportation — face an additional problem: severe shortages of skilled labor along their supply chains. n nHow severe? In July, the National Association of Manufacturers estimated that 437,000 manufacturing jobs were vacant, while Associated Builders and Contractors has estimated that the construction industry will need nearly 500,000 new workers in 2026. n nInfrastructure Impact n nThose issues extend to U.S. infrastructure as well. New research from the Aspen Institute highlights three major challenges for this sector: n nReduced output: “Labor productivity in road, highway, and bridge construction has fallen 22 percent since 2017,” Aspen Institute economist Luke Pardue writes in a new paper, citing 2024 figures from the U.S. Bureau of Labor Statistics. n nOther measures of productive capacity show a similarly worrisome decline in the building of new energy infrastructure, he continues: “For instance, despite rising power demand, the country now lays just one-eighth of the high-voltage transmission lines each year compared to two decades ago.” n nWhen natural disasters or other supply-chain disruptions occur, road and infrastructure access are among the many barriers we must overcome to get back on track. n nHigher costs: U.S. infrastructure costs are often much higher than those in other countries. As one example, Pardue notes that U.S. transit costs are 2.5 times higher than the average for all member countries in the Organization for Economic Cooperation and Development (OECD), which, of course, carries significant implications both for Essential Economy industries and U.S. global competitiveness. n nIncreasingly complex permitting processes: “The average time it takes to prepare an environmental impact statement has grown from 3.4 years in the 1990s to 4.8 years recently,” Pardue notes in his research paper. Meanwhile, “the average length of such a report has grown from 414 pages on average in 1977-78 to 1,704 pages in 2013-2017.” n nLitigation can dramatically increase the timeline. For instance, if an interested party files a lawsuit under the National Environmental Policy Act (NEPA), the median time for resolving such a case is 23 months, Pardue says. In addition, project sponsors must navigate through a network of federal and state agencies, each with its own requirements and timelines. n nAt Ford, we will continue to encourage suppliers to embrace a dual-facility manufacturing strategy to reduce risk and build resilience. Lengthy permitting can hinder suppliers trying to stand up new facilities. n nTogether, those challenges add up to one big obstacle course for the Essential Economy, which depends on resilient supply chains that move reliably from raw materials to finished products. n nIn the bigger picture, supply chain health is essential to our nation’s economic growth and resilience — and to U.S. competitiveness in global markets. n nAt Ford, we’re playing an active role in developing solutions to address supply chain challenges by embracing best practices to boost resilience. We’re adopting innovations and artificial intelligence to help monitor risk and prevent disruptions rather than reacting to them. We know we aren’t alone. n nNew AI tools have already been reducing waste in trucking and optimizing freight routes. Now they’re helping speed up approvals for new energy projects as well, Pardue notes. n nThe Federation of American Scientists has suggested using AI to automate the modeling of the impact of new interconnections on the energy grid, he writes: “Such a tool — the ‘PermitAI’ prototype — has been developed for NEPA review by the Pacific Northwest National Laboratory.” Meanwhile, PJM Interconnection, which operates the nation’s largest electrical grid, is partnering with Google and Tapestry to develop AI-powered tools for streamlining the addition of new generation sources to meet increasing power demands. n nAnd in April, the White House issued an executive order directing agencies and departments to “make maximum use of technology in environmental review and permitting processes for infrastructure projects” with the goal of streamlining and accelerating such reviews “to 21st-century speeds.” n nLooking Ahead n nWhile the supply-chain and infrastructure challenges are significant, they’re not insurmountable. Pardue calls on the public and private sectors to collaborate on solutions in the same way they did during the building of the U.S. interstate highway system in the late 1950s through the 1970s. n nFord is proud of our vast U.S. and global supplier networks and the impact we have on the domestic automotive supply chain. We are committed to finding new ways to support small- and medium-size businesses that supply vehicle parts, with the goal of building the most resilient supply chain. n nWith long-term planning, new technologies, and a shared public-private commitment, we can strengthen supply chains and keep the Essential Economy moving forward. n nFor related research on productivity in the construction industry, see this companion Aspen Institute paper by Brian Potter, senior infrastructure fellow with the Institute for Progress.