The American Trucking Associations’ Technology & Maintenance Council (TMC) and Decisiv reported a 1.7% decline in combined parts and labor expenses during the first quarter of 2024. This data was highlighted in the latest Decisiv/TMC North American Service Event Benchmark Report.
“Lower parts and labor costs are welcome news to fleets, who have been weathering substantial increases for much of the last several years,” said TMC Executive Director Robert Braswell. He emphasized that the parts and labor cost analysis report serves as a valuable tool for Council members to benchmark their performance against industry trends.
Technician Shortage Lingers The report indicated a continued downward trend in costs across 25 key VMRS (Vehicle Maintenance Reporting Standards) systems. In the previous quarter, costs fell by 1.4%, with only seven of the 25 systems seeing an increase in the latest quarter, a reduction from the 13 systems that experienced hikes in the previous period.
Parts costs decreased by 2.4%, marking the second consecutive quarterly decline, while labor costs fell by 0.8% after two quarters of increases. Year-over-year, combined costs dropped by 2.3%, although labor costs rose by 0.9%. This increase was notably smaller than the 4.0% rise reported in the prior quarter.
“While more new trucks and greater parts availability are helping commercial asset service operations realize an across-the-board drop in costs, the ongoing shortage of new technicians entering the workforce continues to drive up labor costs,” noted Decisiv President and CEO Dick Hyatt. He acknowledged that despite the positive trends, the shortage of technicians is still a significant challenge, pushing up labor costs as companies spend more to attract and retain skilled workers.
Newer Equipment Contributing to Cost Decreases The influx of new trucks and the resolution of supply chain issues have contributed significantly to the decrease in parts costs. However, the persistent shortage of new technicians continues to elevate labor costs, necessitating higher expenditure to secure qualified personnel.
The data analyzed by Decisiv for the North American Service Event Benchmark Reports encompass more than seven million assets and over 300,000 monthly maintenance and repair events at more than 5,000 service locations. These reports, issued by ATA’s Technology & Maintenance Council to its fleet members, are organized based on VMRS-coded vehicle systems and geographic location, providing a comprehensive overview of the industry’s maintenance and repair cost landscape.
This ongoing analysis helps fleets understand and adapt to changing cost structures, ultimately aiding in more efficient and cost-effective operations.
Source:
https://www.truckinginfo.com/10224310/truck-parts-and-labor-costs-continue-to-slide
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