Decisiv Inc. reported that recent parts and labor cost data reflects significant cost challenges and opportunities facing fleets as we move into 2023; however, cost increases in these areas did slow by the end of 2022 as compared to the previous year. The latest quarterly Decisiv/TMC North American Service Event Benchmark Report was produced in partnership with TMC and released during during TMC’s 2023 Annual Meeting and Transportation Technology Exhibition.

“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,” said Dick Hyatt, president and chief executive officer, Decisiv.

On a year-over-year basis between 2022 Q4 and 2021 Q4, parts and labor costs rose by 14.4% and 10.8%, respectively, and combined expenses were up 13%. Earlier in 2022, annual comparisons between quarters showed that combined parts and labor costs were up 15.3%, parts costs rose 15.8%, and labor expenses increased by 14.6%.

Declines in costs were also apparent in comparisons between Q3 and Q4 of 2022. In the fourth quarter of last year, service operations saw a 1.6% decline in parts costs while labor expenses rose by less than one half of a percentage point (0.4%) Overall, combined parts and labor costs from Q3 to Q4 were down 0.9%.

All of the latest data is a clear indication of a trend toward lower service costs as well as total cost of ownership for fleets, Decisiv noted. However, as it is unlikely that lower parts prices and reduced labor wages are responsible, other factors are most likely influencing cost decreases.

Those include a slowing of for-hire truck tonnage during the final quarter in 2022 resulting in decreased mileage. Additionally, after being hampered by supply chain issues, manufacturers have seen marked increases in production levels of new trucks. The report is available to TMC members.