(Reuters) – Agriculture tools maker Deere (NYSE:) & Co mentioned on Friday it will transfer the corporate’s cab manufacturing from its Waterloo, Iowa plant to Mexico because of a good labor market in the USA.

The switch of cab manufacturing from its Tractor and Cab meeting operations facility to the parts plant in Ramos, Mexico is anticipated to be accomplished by 2024, impacting about 250 workers.

“The choice to maneuver cab manufacturing ensures the corporate can stability workforce wants throughout the tight labor market, whereas additionally making certain Waterloo can open up ground area to fabricate new merchandise,” the corporate mentioned in an announcement.

An acute scarcity of staff is boosting wage progress, growing prices for U.S. producers who’re already coping with inflationary pressures.

Deere missed Wall Avenue income targets in its newest quarterly outcomes and flagged difficulties in securing components for its heavy equipment.