How Often Do Shops Assess Their Labor Rate?
Almost half of our respondents (45%) review labor rates once a year. Twenty-three percent review them twice a year, and 18% look into them once a quarter. Considering the current fluctuations of the economy, we’d suggest at least a quarterly review to ensure your shop and techs are being paid fairly for their services.
What Is The Labor Rate Nowadays?
We asked respondents to share their median labor rates from 2023, early 2024, and late 2024: There’s a $9 jump between 2023 and the end of 2024. In addition, 46% of respondents said their labor rate was within 10% of their immediate competitors.
Interestingly, only 7% saw themselves as “expensive,” or more than $10 more per hour than their nearby competitors. A good portion of them (37%) saw themselves as less expensive ($10 or more less than nearby competitors). Some of the “more expensive” shops may also be working on different types of equipment, or doing additional mobile or emergency call-outs, and so on.
Mobile Charges & Call-Out Fees
Mobile repair can be a lucrative service, but it also brings its own expenses; you’ve got to keep your service truck in good order and filled with gas, you need to keep a good stock of parts in it, and whatever tech hops into it to deal with a call-out is no longer going to be available for work that day.
The median general labor rate was $134. The mobile median labor rate was $149, or 7.2% more than the general rate. In addition, almost half the industry implements an hourly trip charge for every call-out. Considering the wear and tear and additional expenses that go into running a mobile repair branch, that sounds more than fair.
Heavy-Duty Longevity
Those who are fond of the industry can definitely still make a career of it. Forty-one percent of respondents had 20+ years of experience in heavy-duty; it’s quite a drop down to 16% who claimed 1-5 years. Only 3% claimed a year or less under their belts, which does suggest the shortage in newcomers to the field (and the overall ongoing tech shortage).
Parts Markup & Margin by Region
Overall, shops saw a median 21% parts margin. We further segmented respondents by what region of the country or Canada they reside in, and found that the Southwest has the highest overall average margin (28%).
In Conclusion: The Heavy-Duty Industry Is Here To Stay.
Regardless of what happens with alternative fuels and power sources, there will always be a need to transport and construct — and a need for technicians and shops to repair the machinery that makes it happen. That’s not to say the industry won’t see changes and shifts, particularly as the old guard continues to retire and the search for newer and younger techs continues. We hope the trends we’ve showcased here can help you grow and update your own shop.