Mexico may be getting more expensive for car manufacturers!

The rush by car makers to establish plants in the country, and the draw it has created for a growing field of auto-parts suppliers, has led to tougher competition for workers. Although the growing job vacancies and rising labor costs won’t shift the economic basis for the pushing factory work to Mexico, the WSJ’s Christina Rogers and Dudley Althaus report that they’re causing sticker shock among manufacturers. Companies including Toyota Motor Corp., BMW AG, Ford Motor Co. have committed to spending $15.8 billion to build or expand assembly plants. Those sites, along with those of parts makers, are increasingly hard-pressed to hire and retain skilled workers, particularly in the industrial strongholds in the north of Mexico. One expert says the region faces a “huge supply gap” of skilled workers and that rising wages may even push some factory work further south, extending supply chains still further in a bid for lower labor costs.