Union Pacific CEO: US economy remains resilient, consumer demand holds strong
Union Pacific (UNP) CEO Jim Vena says the American economy remains resilient — even if some cracks are starting to show.
“The consumer, from everything we see, is still strong at this point,” Vena told Yahoo Finance at Ford’s Pro Accelerate conference in Detroit, Mich. “They are still out there spending, they’re still out there moving.”
Pressed on whether a slowdown is underway, Vena acknowledged weakness in parts of the economy, but emphasized broader strength.
“In specific segments, there is, you can see that,” he said. “But in other parts it’s moving really good.” Some of those segments include homes, which aren’t selling at the rate they were before, he noted.
When asked about hiring challenges — a common refrain from executives across industries — Vena pushed back.
“Because of the type of jobs we have, we really don’t have a problem attracting people,” he said. “We attract people that want to work where they’re not directed all the time by a supervisor.”
Vena added that Union Pacific hires “across the board,” from locomotive engineers, conductors, technicians, and even lawyers. Veterans make up 18% of its workforce, he said.
The Omaha, Neb.-based railroad company employs over 32,000 people. Vena, who once operated trains himself, says the robust hiring reflects competitive compensation benefits and how the company treats its employees.
Separately, Vena framed the Trump administration’s reshoring and tariff policies to boost domestic manufacturing as a net positive. “If you can have more Americans working with more options and more products made in the United States of America, it’s great for the economy, it’s great for the workers, and it’ll draw more people that are not working, that today are not part of the workforce.”
There is still room for America’s workforce to grow, he added.
Vena also highlighted technology as a key driver of productivity across the railroad industry. “You always have to be looking at how you could become more productive using technology,” he said, noting innovation in America as the driving force behind the advancement of companies.
Not everyone shares Vena’s optimism. Evercore ISI analyst Jonathan Chappell wrote that while Union Pacific’s network is performing well, industrywide earnings face pressure from cost inflation and weaker volumes.
“3Q volumes did not build on the decent 1H trend line,” he wrote, adding that earnings outlook across the sector has become “much more muted.”
Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at francisco.velasquez@yahooinc.com.
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