A new report from TMC and Decisiv has found that parts and labor costs are trending downward for the second quarter of improvement since 2023.
Part and labor prices have increased 4-8%, while part and labor availability have decreased. Due to difficulties sourcing replacement vehicles, fleets are keeping units in service longer. This caused repair spend to increase in 2021.
The report will be based on the TMC’s vehicle maintenance reporting standards, and will track parts and labor expenditures and trends throughout North America.
The vehicle maintenance and repair industries are experiencing a skilled labor shortage as technicians in the Baby Boomer demographic retire in greater numbers than those replacing them. The skilled labor shortage requires shops to pay more for skilled technicians, which translates into higher shop labor rates.
The robust economy is creating record numbers of new jobs and a subsequent labor shortage that is being exacerbated by the large wave of Baby Boomer retirements, but some see uncertainty of future market conditions.
FTR’s Trucking Conditions Index for July remains in a positive range with a reading of 5.75, reflecting tightening capacity, rising spot rates.
FTR’s Trucking Conditions Index fell by more than two points in June as a result of increased costs for labor, fuel, and equipment, reflecting less favorable conditions for trucking.
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