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Car companies face labor shortage in Mexico

August 15, 2016

The Wall Street Journal reports car manufacturers and parts suppliers that were attracted by Mexico’s plentiful and inexpensive labor are now poaching workers, paying bonuses and offering perks, chipping away at the country’s low-cost advantage. “We have a huge supply gap in Mexico that needs to be resolved,” said Stephan Keese, a Chicago-based partner at consulting firm Roland Berger, which works with manufacturers in Mexico. “We’ve only seen the tip of the iceberg of this shortage. Labor rates going up will be unavoidable.”