In recent weeks, legacy automaker Ford (F) CEO Jim Farley has had a lot to say about manufacturing in the United States and its potential problems ahead. But now, Farley is joined by no less than Mike Rowe of Dirty Jobs fame to talk about that same thing. Getting Rowe involved in the action did little to help investors, though, as shares slipped fractionally in Monday afternoon’s trading.
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While on a Sunday talk show—specifically, One Nation with Brian Kilmeade—Rowe was deeply alarmed about the state of manufacturing in the United States. In fact, Rowe went so far as to say, “If I had one of those big red bells in a fire department, I’d hit it with a hammer. I’d ring the alarm. This is it.”
Rowe noted there is a growing gap between the number of skilled trade jobs available and the numbers of people with skills stepping in to take them. This is a point that Jim Farley has been heard from frequently of late, noting that the United States is in “…a war for manufacturing.” Meanwhile, Farley notes, China is rapidly stepping up its industrial capacity. While Ford has options here, including the ability and resources to recruit talent from farther out, small businesses will likely have a tougher time filling the gaps.
Too Innovative?
Innovation is generally a good thing, but sometimes, it can go just a bit too far. Remember Coca-Cola’s (KO) New Coke? Or the Windows Phone from Microsoft (MSFT)? Some are wondering if the new Ford Expedition has fallen prey to the same notion of too much innovation too fast.
A recent look at the Ford Expedition noted it hit the right notes in many places. Its engine is excellent, as is its third row of seats. But the split tailgate proved an issue, offering plenty of support for heavy gear or groceries that can slide around, but making things tougher on short people. The steering wheel, described as a “squared oval,” felt awkward to hold, despite being necessary to keep from blocking instrument panels. The wheel also got in the way of touch panels designed for steering column adjustment.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 17.63% rally in its share price over the past year, the average F price target of $12.14 per share implies 7.72% downside risk.
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