Trucking Costs Start to Drop as Maintenance and Repair Expenses Improve

The trucking industry experienced record-high costs last year, but there’s now a notable improvement in maintenance and repair expenses.

A recent report from the American Trucking Associations’ Technology & Maintenance Council and Decisiv reveals a 1.7% decrease in combined parts and labor costs in the first quarter of 2024. This reduction in trucking maintenance costs is a welcome change for the industry.

Dick Hyatt, President and CEO of Decisiv, explained that the arrival of new trucks and the resolution of supply chain issues are contributing to the reduction in parts costs. However, a shortage of new technicians continues to drive up labor costs. Trucking companies are spending more to attract and retain skilled workers from a shrinking labor pool, impacting overall trucking labor costs.

In the first quarter of 2024, parts costs fell by 2.4%, marking the second consecutive quarterly decline. Labor costs decreased by 0.8% after two quarters of increases. Compared to the same time last year, combined trucking maintenance costs dropped by 2.3%. Although labor costs increased by 0.9% year-over-year, this is significantly lower than the 4.0% increase seen in the previous quarter.

The latest Decisiv/TMC North American Service Event Benchmark Report indicates that service and repair costs across 25 key VMRS (Vehicle Maintenance Reporting Standards) systems continued to decrease. In the previous quarter, costs fell by 1.4%. Combined parts and labor costs increased in only seven of the 25 VMRS systems, a substantial decrease from the 13 systems that saw increases in the previous quarter.

The report highlights that while parts costs rose in seven systems and labor costs increased in 12 systems, overall, there were clear reductions in both parts and labor costs.

In its 2024 Analysis of the Operational Costs of Trucking, the American Transportation Research Institute (ATRI) found that repair and maintenance costs rose by 3.1%, reaching $0.202 per mile from 2022 to 2023. Data from January and February this year shows an additional 2% increase, further impacting trucking repair costs.

Decisiv collects and analyzes data for the Decisiv/TMC North American Service Event Benchmark Reports on 25 VMRS system level codes. These codes account for more than 97% of total parts and labor costs, covering over seven million assets and more than 300,000 monthly maintenance and repair events at over 5,000 service locations.

To summarize, while the trucking industry faced high costs last year, things are starting to improve. The arrival of new trucks and better supply chain conditions are helping to reduce parts costs. However, the shortage of technicians continues to push labor costs up, as companies need to spend more to find and keep qualified workers. Overall, both parts and labor costs are beginning to decline, showing a positive trend for the industry.

Key Takeaways:

• Trucking maintenance costs are decreasing, with a 1.7% drop in the first quarter of 2024.
• Parts costs fell by 2.4%, marking the second consecutive quarterly decline.
• Labor costs decreased by 0.8% after two quarters of increases.
• Year-over-year, combined costs dropped by 2.3%, while labor costs increased by 0.9%.
• The trucking industry continues to face a shortage of new technicians, impacting labor costs.
• The latest data covers over seven million assets and more than 300,000 monthly maintenance and repair events.

These improvements in trucking costs are a positive sign for the industry, suggesting that the record-high costs experienced last year may be starting to ease.