TMC: Combined parts and labor costs rose in Q3 2025

The American Trucking Associations’ Technology & Maintenance Council (TMC) and Decisiv Inc. found that P&L costs rose by 3.7% in Q3 2025. More specifically, quarter-over-quarter costs rose by almost 5% for parts and 2% in labor.

“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.”

On a YoY basis, parts and labor costs rose by 1.7%, with parts and labor rising individually by 2.5% and 0.5% year-over-year, respectively.

According to TMC and Decisiv, possible reasons for the increase in costs could include:

• Fleet right-sizing and carrier closures leading to capacity aligning with freight demand
• Higher mileage and utilization rates
• The ongoing technician shortage

On a system basis, parts and labor costs rose from last quarter in 17 out of 25 VMRS Systems from the TMC Benchmark Report. The same number of parts costs rose on a quarterly basis as well, which is one more than in Q2, while labor costs rose in 15 systems. On a yearly basis, parts and labor costs together rose in 15 VMRS systems (two fewer than the prior year).