On December 1, 2022, the National Minimum Wage Commission in Mexico announced the minimum wage increase for 2023. On January 1, 2023 the minimum wage in Mexico increased by 20%. This change will impact BAG Corp operations in all three of our manufacturing facilities.
In addition to the minimum wage hike we are also experiencing increases in other areas like electricity and other areas where inflation (expected to run from 6% to 10% in Mexico for 2023) has an impact.
We know this is news that no one wants to hear, but it is the reality of what is currently taking place for all companies who have manufacturing in Mexico.
BAG Corp looks forward to serving you in 2023 and we appreciate your business.