The trucking industry has faced significant challenges in recent years, with supply chain disruptions and rising costs impacting fleets and service providers. However, a new report from the American Trucking Associations' Technology & Maintenance Council and Decisiv Inc. suggests that the tide may be turning, as heavy-duty parts and labor costs continue to decline, albeit at a slower pace.

Navigating the Shifting Landscape of Trucking Costs

Gradual Decline in Parts and Labor Expenses

According to the latest Decisiv/TMC North American Service Event Benchmark Report, parts and labor expenses fell 0.7% in the second quarter of the year, following a more significant 1.6% drop in the previous quarter. This trend reflects a "continued leveling off of expenses following historically high increases that resulted from supply chain challenges," as noted by Decisiv President and CEO Dick Hyatt.The report's findings suggest that fleets and service providers are beginning to experience a return to more predictable cost patterns. This is a welcome development, as last year saw repair and maintenance costs grow by 3.1% to $0.202 per mile, according to research from the American Transportation Research Institute (ATRI).

Uneven Impacts Across Cost Categories

While the overall trend points to a decline in parts and labor costs, the report reveals that not all cost categories have seen the same level of improvement. In fact, 13 of the 25 Vehicle Maintenance Reporting Standard (VMRS) categories tracked in the report experienced cost increases, up from just 7 VMRS increases in the first quarter.This uneven impact highlights the complexity of the trucking industry's cost landscape, with some areas continuing to face challenges while others experience more stability. Fleet managers and service providers will need to closely monitor these trends and adjust their strategies accordingly to maintain profitability and operational efficiency.

Varying Trends in Parts and Labor Costs

The report further breaks down the changes in parts and labor costs. Parts costs fell 0.4% in the second quarter, marking the third consecutive decline, though the drops were smaller than the 2.2% and 2.4% declines seen in the first quarter of 2024 and the final quarter of 2023, respectively.Labor costs, on the other hand, slipped 1.1% in the second quarter, following a 0.6% decline in the first three months of the year. When compared to the same period a year ago, combined parts and labor costs were down 1.4%, with labor costs 0.7% higher but parts costs falling 2.8%.These nuanced trends underscore the need for fleet managers and service providers to closely track and analyze their specific cost drivers, as the industry-wide figures may not fully capture the unique challenges and opportunities faced by individual operations.

Leveraging Data for Cost Optimization

The Decisiv/TMC North American Service Event Benchmark Report draws upon a vast dataset, accounting for more than 97% of total parts and labor costs for over seven million assets and 300,000 monthly maintenance and repair events at more than 5,000 service locations. This wealth of data provides fleet managers and service providers with valuable insights to help them navigate the evolving cost landscape and make informed decisions.By leveraging this data, industry stakeholders can better understand the underlying drivers of cost fluctuations, identify areas for optimization, and develop strategies to enhance their overall cost management and operational efficiency. As the trucking industry continues to navigate the post-pandemic landscape, this data-driven approach will be crucial in helping fleets and service providers maintain a competitive edge.