Auto repair shop owners across the United States are confronting a growing technician shortage. Recent data from the U.S. Bureau of Labor Statistics (BLS) and industry surveys reveal that while many shops have increased the hourly labor rate charged to customers, the wages paid to mechanics have not kept pace.
National pay landscape
According to BLS figures, the top 10% of technicians earn more than double the bottom 10%, with hourly earnings ranging from $39.32 for the highest earners to $16.66 for the lowest. The disparity underscores the challenge of attracting skilled workers, especially as 24% of shop owners identify low compensation as the primary cause of the shortage, ahead of negative public perception of the trade or competition from other industries.
Technician perspectives
When surveyed directly, 67% of technicians say low pay is the main reason they consider leaving the profession. Even shop owners who offered raises last year report that many employees remain dissatisfied, suggesting that wage increases have merely kept pace with an already widening gap.
States paying the most
The BLS data highlights fifteen states where technician wages are highest. While the article does not list each state, it notes that technicians in places like Alaska can earn well above the national median, whereas peers in other regions may perform equally complex work for considerably less.
Shop owners’ response
Faced with the shortage, 46% of owners expect the problem to worsen over the next five years, while 36% are hopeful for improvement. The 2025 OEC U.S. General Auto Repair Shop Survey, which sampled 700 shops, found that the most common strategy to combat the shortage is offering competitive wages. Other tactics include providing training opportunities, promoting work‑life balance, fostering a positive workplace culture, and offering more flexible hours.
Customer pricing trends
PartsTech’s fall 2024 survey of 752 general repair shops shows that 49% of shops now charge between $120 and $159 per hour, with only 10% charging less than $100 and a mere 2% exceeding $200 per hour. These higher labor rates reflect the rising costs of labor, older vehicles, and increasingly complex repairs.
Why rates are rising
Several factors drive the upward trend in labor charges. The average vehicle age has climbed to 12.8 years, leading to more frequent breakdowns. The pandemic caused a wave of technician layoffs, and the subsequent labor shortage forced shops to raise wages, passing some of those costs onto customers. Additionally, modern repairs often require extensive diagnostic time, specialized tools, and advanced skills, as noted by Ryan Mandell, director of performance consulting at Mitchell, who told CNBC that today’s fender‑bender may involve replacing sensors that did not exist a decade ago.
Practical tip for shop owners
Owners are advised to compare current labor rates and technician wages with those from three years ago. If labor rates have risen faster than wages, a gap likely exists, indicating that additional revenue is not reaching employees and may not improve retention.
Conclusion
As the auto repair industry grapples with an aging vehicle fleet and a tightening labor market, shop owners must balance the need to cover rising costs with fair compensation for technicians. Competitive wages, training, and a supportive work environment appear to be the most effective tools for retaining skilled workers and ensuring the long‑term health of the industry.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
