Maintenance and repair costs rise, but rate of increase slows despite headwinds, fleet maintenance operations continue to offset increases. Parts and labor cost data indicate that significant cost challenges continue to impact fleets through 2023.
The good news, however, is that these cost increases slowed by the end of 2022 compared to the previous year. The overall positive improvement in parts and labor costs shows that despite economic headwinds and supply change challenges, commercial vehicle service operations continued to successfully offset increases driven by factors outside of their control. Declines in costs also were apparent in comparisons between Q3 and Q4 of 2022. In the fourth quarter of last year, service operations saw a decline in parts costs while labor expenses rose by less than one-half of a percentage point.
The latest data is a clear indication of a trend toward lower service costs as well as total cost of ownership for fleets, according to the report. However, as it is unlikely that lower parts prices and reduced labor wages are responsible, other factors are most likely influencing cost decreases. Additionally, after being hampered by supply chain issues, manufacturers have seen marked increases in production levels of new trucks. As pent-up demand continues to drive up orders of replacement vehicles for aging fleets, new equipment will positively impact their bottom line by requiring fewer repairs and high-cost unscheduled service events.
These market trends, coupled with the drive to reduce downtime, have helped drive the evolution from service management to asset management. Excluding tires, brakes, and lighting systems where costs reflect mileage and routine maintenance requirements did indicate year-over-year average parts and labor cost increases for most likely the same reasons they did for cranking systems.
ALL FREIGHT DISPATCH
Tired of looking for loads and you have a semi truck?
WE KNOW THAT EVERY 1% IN SAVINGS MEANS A LOT TO A TRUCKING COMPANY!
Our professional team will save you all of your troubles. We charge only 5% or less and we take care for the following:
Loads search, negotiate best rates, calculate hours, set-up packets, request detentions/layovers.
We will send weekly reports which include all empty miles, loaded miles, revenue, and rate per mile for each week.
Do not hesitate to reach us via email: Info@Allfreightdispatch.com or feel free to contact us at:888-404-5045