New Report from TMC and Decisiv Reveals Reversal of Previous Quarterly Trends
WASHINGTON – JANUARY 5, 2025
A new report from American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc. indicated parts and labor costs rose in the third quarter of 2025.
After falling for three quarters, in Q3 2025 combined parts and labor costs in the Decisiv/TMC Parts & Labor Service Benchmark Report increased by 3.7 percent. The Quarter-over-Quarter (QoQ) combined costs increase was seen in both 4.8 percent higher parts costs and a 2.0 percent rise in labor expenses. In the latest quarter, QoQ parts and labor cost increases also represented a reversal of previous quarterly decreases.
Combined parts and labor costs increased 1.7 percent Year-over-Year (YoY), continuing the upward trend in the two previous quarters. Parts and labor costs also rose YoY by 2.5 percent and 0.5 percent, respectively. The higher combined costs in latest report marked the third quarterly YoY increase in a row.
Higher costs across the board in Q3 2025 may be a reflection of several industry trends. Combined cost increases could indicate that fleet right sizing and the recent closures of carriers are aligning capacity with freight demand and in turn driving up mileage and consequently service needs for existing equipment. Increases in parts and labor costs would naturally stem from higher mileage and utilization rates while ongoing technician shortage pressures are likely another cause of rising labor expenses.
In Q3 2025, combined parts and labor cost increases were recorded in 17 of the 25 VMRS Systems tracked in the Decisiv TMC Benchmark Report, the same number of system increases in the previous quarter. QoQ parts cost rose in 17 VMRS Systems, one more than in Q2 and labor costs were up in 15 systems matching the previous quarterly analysis.
YoY, combined parts and labor costs were higher in 15 VMRS Systems, two fewer than in the previous quarter. Parts and labor costs were both higher in 15 systems, down from 18 for parts and 19 for labor expenses in the previous YoY analysis.
“Increasing costs in the Decisiv/TMC Parts & Labor Service Benchmark Report in Q3 2025 point to the impact of increased vehicle utilization, a sign that carriers are aligning capacity with freight demand,” said Tim Hardin, president and CEO of Decisiv. “As mileage increases, so does the demand for equipment service. However, with strong management practices, fleets are well positioned to meet this challenge effectively.”
The Decisiv/TMC Parts & Labor Service Benchmark is based on comprehensive service data. For the report, Decisiv collects and analyzes parts and labor costs for 25 VMRS system level codes, which accounts for more than 97 percent of total parts and labor spent on costs more than seven million assets during over 300,000 monthly maintenance and repair events at more than 5,000 service locations.
“While the data on various parts and labor categories indicates increasing costs for fleets, the information provided by the Decisiv/TMC Parts & Labor Service Benchmark helps provide Council members an excellent means of comparing how their operations are performing to industry trends so they can take action accordingly to changing industry conditions,” said TMC Executive Director Robert Braswell.
TMC issues the reports to its fleet members. The reports are organized based on the Council’s VMRS, sorted by VMRS-coded vehicle systems and geographic location.
TMC fleet members will receive the report electronically via email. For more information on joining TMC, call (703) 838-1763 or visit http://tmc.trucking.org.
About TMC
By providing leadership support and opportunities to collaborate, TMC helps members develop the industry’s best practices that address the critical truck technology and maintenance issues that have the greatest impact on truck fleets. For more than 60 years, TMC’s member-driven Recommended Maintenance and Engineering Practices have been setting the standards that help trucking companies specify and maintain their fleets more effectively. Follow TMC on X, LinkedIn and Facebook.
American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight. Follow ATA on X or Facebook
About Decisiv, Inc.
Decisiv, based in Virginia, powers North America’s largest asset service management ecosystem for the commercial vehicle industry. Our industry leading Service Relationship Management (SRM) platform connects over 5,000 service locations and 74,000 fleets, orchestrating more than 4 million annual service events. By linking dealers, OEMs, component manufacturers, and fleets with real-time, actionable data at the point of service, Decisiv enables smarter maintenance planning and lifecycle management for improved utilization, performance, and compliance. Learn more at decisiv.com.
Contact:
Rob Ziemba
VP Marketing
Decisiv
Phone: (804) 762-4153
[email protected]