Parts and Labor Costs Fell Slightly in the Fourth Quarter of 2023

American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc. said combined parts and labor expenses fell 1.4% during the fourth quarter of 2023.

In the latest Decisiv/TMC North American Service Event Benchmark Report, TMC and Decisiv found that 25 key VMRS systems dipped in the final quarter of 2023, reversing a 2.1% increase the previous quarter.

“We are still facing an industry-wide challenge to find technicians, which is increasing labor costs for fleets and service providers. However, quarterly and annual parts cost decreases, driven by a reduction in pricing pressures and the influx of more new trucks, is bringing some welcome relief,” said Decisiv President and CEO Dick Hyatt. “With the Decisiv TMC Benchmark Report, TMC members have the parts and labor data they need to better analyze costs and continue implementing practices that will help them gain efficiency and become even more productive.”

The decrease was driven largely by parts costs, which dropped 2.2% in the fourth quarter of 2023 while labor costs fell 0.2%. While quarter-over-quarter parts and labor costs both declined in the last three months of the year, the parts-to-labor ratio held steady at about 1.5 for the past year.

On a year-over-year basis, combined parts and labor costs in final quarter of 2023 were 0.2% higher than the same quarter in 2022. However, in the annual comparison, a 2.2% drop in parts prices was offset by a 4.0% rise in labor costs.
more at: https://www.trucking.org/news-insights/parts-and-labor-costs-fell-slightly-fourth-quarter-2023