CIUDAD JUÁREZ, Mexico—When car companies began flocking to this border town more than two decades ago, the big lure was labor, which was plentiful and inexpensive.
Today, with an auto-production boom in high gear, those advantages are being chipped away.
Toyota Motor Corp., BMW AG, Ford Motor Co. and several other auto makers have committed to spend a combined $15.8 billion to build new assembly plants or expand existing factories. That is on top of the more than a dozen plants already in operation and billions more being spent by auto-parts suppliers to keep pace.
The competition for employees—both finding and retaining them—is nudging up labor costs. Retention and retraining programs are becoming the norm as are bonuses for employees who agree to stay in place, especially those with valued skills. Some factories are luring recruits with perks such as a new cowboy boots. Vacancies are becoming the norm.
They're going to need the Stork.
