In its third annual State of Heavy-Duty Repair Report, Fullbay reported an increase in heavy duty repair shop profits and revenue in 2022.
The 2022 study of more than 1,600 individuals from the commercial freight, logistics, and repair industries reported that 52 percent of repair shops reported a net profit of 11 to 30 percent.
In 2020, 20 percent of shops didn’t know their net profit, but that number dropped to 10 percent in the 2022 study.
“The diesel industry can be lucrative – but how much a shop earns can depend on many factors, like what services it offers, the number of techs on staff, and even where it’s located,” said Patrick McKittrick, CEO of Fullbay. “On top of that, it’s important for these shops to be able to have visibility across the shop with comprehensive reporting. The more small businesses are aware of their profits or losses, the better they’re going to do.”
According to the report, 25 percent of shops surveyed were grossing between $1 to $2 million each year, while 17 percent reported revenue between $250,001 and $500,000. Shops passing the $2 million mark were at least 16 years old.
Additionally, shops offering more services, such as mobile repairs, tire repair, and welding/fabrication, etc., reported more revenue than shops offering just one service. Those with one service show average gross revenues between $250K - $2M, 28 percent of shops offering seven services crossed into the $4M+ revenue threshold.
Shops also generally saw revenue increase as they added technicians. Growing from three to four technicians will yield a 40 percent increase in revenue, while growing from five to six or seven technicians will continue to increase revenue in your shop.
To download the full 2023 report, click here.
