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Across the country, millions of people drive to their jobs daily, while countless company vehicles, from delivery vans to construction trucks, also fill the roads. Vehicle maintenance and repairs have always been part of ownership, but perhaps you have noticed the costs for repairs has jumped lately.
As highlighted in a Sunday story on CNBC, some of the factors influencing higher repair costs include more expensive parts, more sophisticated components, labor shortages, and more. Repair costs are rising relative to the overall rate of inflation. Motor vehicle maintenance and repair costs increased 4.1% per year from November 2013 to November 2023, compared with just 2.8% for the overall consumer price index.
“Meanwhile, talent to repair cars is scarce. The Covid-19 pandemic exacerbated a longstanding shortage. In 2019, the average labor rate for repairs was under $50 an hour in the U.S., according to Mitchell. At the end of 2023, it was close to $60. Most of those increases came in 2022 and 2023.” Parts are another sticking point. “In 2022, the cost of parts sourced from automakers rose 10%, and aftermarket parts rose 17%, compared with the usual annual inflation rate of 0% to 4%. Many in the auto space think costs can’t continue to rise at these rates. The industry is making its biggest shifts in the last hundred years — from gasoline to electric, and from mechanical to digital.” Watch the full video >
Rising vehicle repair costs are a growing concern for individuals and businesses alike. While the industry navigates significant shifts, proactive solutions are needed to address the increasing financial burden. Exploring alternative transportation options, investing in preventative maintenance, and advocating for policies that address the technician shortage are crucial steps to navigate this evolving landscape.
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