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Puerto Vallarta News

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Nayarit business costs

Nayarit business costs climb and margins shrink

A fresh snapshot of the state’s economy points to a simple problem: everything costs more to run. New findings from the Economic Census show higher operating costs topping the list of obstacles for businesses in Nayarit. The same data tracks softer demand and persistent bills, the kind that don’t bend with sales.

Nayarit business costs

Between 2018 and 2023, the share of businesses reporting high input costs nearly doubled. It rose from 18.7 percent to 36.4 percent. That is the steepest jump among reported obstacles. Owners also flagged low demand, which climbed from 17.0 percent to 28.0 percent. Together, those two pressures define the margin squeeze.

The census period captures a volatile half-decade. It ends in 2023 but was measured and released in 2024–2025. INEGI describes the project as a full count of establishments with 2023 as the reference year. That context matters when reading today’s headlines about prices and sales.

The bills that don’t wait

Utility and service expenses barely moved, but from an already heavy base. The share of firms citing high payments for electricity, water, and phone service ticked up from 29.2 percent to 31.1 percent. Taxes also weighed more. Businesses naming high taxes as a problem rose from 12.1 percent to 17.6 percent. None of these are one-off shocks; they recur monthly.

Another slow burn is unfair competition. Reports of that problem edged up from 15.1 percent to 17.1 percent. Owners say it shows up as price-cutting, informal sales, or copycat offerings that undercut formal shops carrying full costs.

What the numbers mean on the ground

For many small firms, the fix isn’t grand strategy. It’s deciding whether to raise prices, trim hours, or delay a hire. When inputs rise and demand softens, the first move is defense. Some owners keep prices steady to hold clients and accept a thinner spread. Others pass on part of the increase and risk losing volume. None of those choices feels like growth.

The path ahead

The picture is not pure gloom. Knowing where the pain sits helps policy and local programs target relief. Electricity bills, for example, can be tackled with efficiency audits or staggered tariffs. Demand can be nudged with city events that push foot traffic into corridors. But without cheaper inputs or stronger sales, owners will keep playing defense through the year.

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