After nearly a year of rising maintenance expenses, truckers, fleet managers, and owner-operators are finally seeing costs drop. The Decisiv VMRS Service Data Quarterly Report reveals that parts and labor expenses declined in Q4 2024. This marks the first drop after three straight quarters of increases, offering much-needed relief in an industry where every dollar counts.
The report, compiled with the American Trucking Associations’ Technology & Maintenance Council (TMC), shows a 1.6% decline in combined parts and labor costs compared to Q3. While the drop isn’t dramatic, it signals a shift in the market after months of financial strain. The big question remains—is this a lasting trend or just a temporary break before costs spike again?
Parts and Labor Costs See First Drop in a Year
For the first time in months, fleet operators are spending less on repairs. Parts costs fell by 1.5%, while labor expenses dropped by 1.9% in Q4. On a year-over-year basis, combined repair costs also declined by 1.6%.
Labor costs had been steadily rising due to a shortage of trained mechanics and high turnover rates. The recent drop suggests an improvement in technician retention, which helps stabilize repair shop pricing. Rob Ziemba, vice president of marketing at Decisiv, was surprised by the shift.
“I wasn’t really looking forward to this presentation,” he admitted. After watching costs climb for three straight quarters, he expected more of the same. Instead, the latest data delivered unexpected good news.
Some Costs Are Still Rising
While overall costs declined, certain parts still became more expensive. Aerodynamic devices rose by 6.4%, the largest increase in the report. These components improve fuel efficiency, so their rising costs may increase upfront expenses for fleets trying to reduce fuel consumption.
Other price hikes included general accessories, up 4.6%, and frames, up 3.4%. These increases show that while repairs may be getting cheaper, some components remain costly.
On the other hand, several key parts became significantly more affordable. Drive shafts saw the largest drop, down 11.1%. Fuel systems followed with a 10.7% decrease, and steering systems fell 10.2%. This shift suggests supply chain improvements, especially for drivetrain components that were in short supply last year.
Why Are Labor Costs Falling?
One of the most unexpected findings in the report was the decline in labor costs. Wages for mechanics have been increasing for years, driven by high turnover and workforce shortages. Now, the numbers suggest a shift.
Ziemba believes improved technician retention has helped stabilize wages. Fewer mechanics leaving their jobs means repair shops don’t have to constantly raise pay to attract new talent.
Another factor could be lower freight volumes. When fewer trucks are hauling loads, there’s less demand for emergency repairs, reducing pressure on service centers.
More Repairs, Yet Lower Costs? What’s Going On?
The report also revealed a surprising 5% increase in service activity in Q4. Normally, an increase in repairs would push costs higher, yet overall expenses still declined.
One possible explanation is better preventative maintenance practices. Fleets may be catching issues earlier, leading to lower overall repair costs. Another factor could be greater efficiency in repair shops, allowing them to handle more jobs without increasing labor charges.
Industry Trends: What Else is Changing?
The decline in repair costs is encouraging, but other trucking expenses continue to rise.
According to industry reports:
- Total cost per mile for trucking reached $2.270 in 2023, an increase of 0.8% from the previous year. (RTS Financial)
- Driver wages climbed 7.6% in 2023, reflecting the industry’s struggle to attract and retain qualified drivers. (ATRI)
- Parts supply chains remain unpredictable, affecting pricing in various categories. (RTS Financial)
While repair costs are down, these other rising expenses could continue to strain fleet budgets.
What Fleet Managers Should Do Next
With repair costs dropping for the first time in months, fleet managers should rethink their maintenance strategies. Those who have been delaying major repairs due to high prices may want to take advantage of the lower costs while they last.
This is the perfect time to:
- Schedule preventative maintenance to fix small issues before they turn into bigger expenses.
- Replace key components like drive shafts and fuel systems while prices are low.
- Invest in technician training to boost in-house repair capabilities.
Since trucking expenses rarely stay low for long, taking proactive steps now could result in significant savings later.
Will This Trend Last?
The biggest question is whether this dip in costs is here to stay.
Historically, trucking expenses tend to climb rather than fall. This drop could be a temporary adjustment, or it may signal a more stable pricing trend moving forward.
Either way, smart fleet managers will act now while costs are lower. If the trend reverses in the coming months, those who took advantage will be in a much better position.
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Sources:
TMC-Decisiv Report: Q4 2024 Trucking Costs Decline RTS Financial: 2024 Trucking Industry Trends & Operational Costs ATRI: 2024 Report on Driver Wages & Industry Costs