(Below is an expert from PartsTech’s 2025 State of General Auto Repair Shops in the U.S. report.) PartsTech surveyed 752 shops and spoke with industry experts to bring you a report with key trends, benchmarks, and free resources to help you uplevel your shop in 2025. Download the report to get insights you can use right away to improve your shop, increase revenue, and stay ahead of common industry challenges.

Revenue-related numbers in auto repair shops

Average hourly labor rate in auto repair shops

Nearly half of the shops that participated in the survey price their labor rate between $120-$159 per hour. 

Free Resource: Set your labor rate to match the value you deliver

Determining the right labor rate for your shop can feel like a daunting task. While there are guidelines to help, there’s no one-size-fits-all formula — every shop is unique, and your labor rate should reflect the unique value you provide your customers. By analyzing your shop’s specific costs, expertise, and market conditions (or landscape), you can arrive at a labor rate that supports both your business and your customers. Check out our blog series with the Repair Shop of Tomorrow for expert insights to get you on the right track. 

Average gross profits on parts per month in auto repair shops

The top selected gross profit on parts per month was 51-60%. According to The Institute for Automotive Business Excellence, shops should aim for a benchmark of 58% gross profit on parts. Based on this target, more than 63% of respondents would benefit from reevaluating and updating their parts markup strategies to increase monthly profits.

How to calculate your gross profits on parts: 

(Total Sales – Cost of All Parts Sold) ÷ Total Sales = Gross Profit on Parts

Free Resources: Parts Markup Guide, Benchmark Matrix, and Webinar Series

We partnered with The Institute for Automotive Business Excellence to create a Parts Markup Guide featuring a detailed benchmark matrix, actionable tips to help you create and/or optimize your strategy, and a companion webinar series. Explore it here. 

Average repair order value in auto repair shops

36% of respondents reported an average repair order value (ARO) between $500 and $749, with $250 to $499 in a close second. Get expert insights and tips for increasing your shop’s ARO.

For more benchmark data, free resources, and tips, download PartsTech’s full report: 2025 State of General Auto Repair Shops in the U.S.

Topics covered in the report include:

📍 Shop demographics, size, and location

🚙 Daily car count per bay

💲 Average repair order value, labor rates, and parts profit

👥 Technician & service advisor staffing numbers per bay

⚡ EV servicing trends

⚠️ Industry challenges & solutions

🤝 Technician hiring & retention strategies

🖥️ Shop software usage and trends