Fleets are finally beginning to see some relief from rising parts and labor costs, according to the latest data from service management platform Decisiv, and the Technology & Maintenance Council (TMC).

The quarterly reports put out by the company, which tracks costs across 25 VMRS (vehicle maintenance reporting standard) codes, showed a decrease in costs in the fourth quarter of 2023. Parts and labor costs dropped 1.4% in the fourth quarter compared to Q3.

This on the heels of a 1.9% increase in Q3.

“This time we are happy to report costs were actually down 1.4%,” said Rob Ziemba, senior director of marketing for Decisiv, while sharing the results at a TMC press conference.

Parts prices dropped 2.2%, while labor fell slightly but is “definitely on an upward trend,” Ziemba said. “The good sign is the inflation pressures we’ve been seeing during the Covid pandemic and recovery after, are definitely easing.”

Fresher fleet

He suggested the increased delivery of new trucks following supply chain challenges has refreshed the on-road fleet and reduced the need for parts, putting less upward pressure on costs. A decrease in freight tonnage could also have contributed.

Price increases of 16-19% were seen at the peak of the pandemic-related supply chain issues. Some of the biggest costs increases in 2023 compared to the year prior involved power takeoffs (19.5%), cab and sheet metal (up 9.8%), and rims, hubs, and bearings (up 16.2%). Labor was also up 15.6% year over year.

Canada cheapest

When it comes to year over year price decreases, aero devices were down 13.5% last year, tires 10.1%, and frame issues 3.8%. Steering components and cooling systems were also down by double digit percentages.

The report also breaks down costs by region, and Canada came out as the cheapest region for both parts and labor costs.

“We are also seeing quality and efficiency has a big impact on these costs,” Ziemba said. “Those service locations that are doing a good job reducing dwell times, improving technician efficiency, and have good processes in delivering the service are able to reduce those costs.”