Average repair cost per unit increased in 2019, primarily due to higher labor rates. Also, PM costs were up as more units require more expensive synthetic oil. Tire price per unit, on average, increased 3% in the past 12 months.
The ongoing trend of increased costs per service will continue as more and more vehicles requiring conventional oil are taken out of service and replaced with models that require synthetics.
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.
Higher labor costs will continue to increase the maintenance spend for routine repairs in 2020, especially at service facilities located in high-cost-of-living metro areas.
Higher fuel prices and maintenance costs, along with upward pressure on maintenance labor rates are a few of the factors increasing fleet operating costs.
Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.
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.
Determining when exactly to cycle your vehicles is a fine balance among many factors, from acquisition, through operation, and resale or asset disposal. Here are nine questions to answer when you’re deciding when and how to best cycle your trucks.
More complex vehicle technology, higher labor rates due to the ongoing skilled labor shortage, higher tire prices, and increased use of synthetic motor oils are putting upward pressure on overall fleet maintenance costs.
More OEMs are adopting more stringent motor oil requirements for new models increasing total PM costs, year-over-year, as more vehicles are required to use synthetic oils, which cost more than mineral-based oils.