The U.S. General Auto Repair Shop Survey Report from Partstech is one of the most comprehensive looks at the industry you can get. Drawing on data from nearly 700 facilities, the report provides actionable operational benchmarks for shop owners, and few metrics carry more weight than labor rates.

According to the survey, which took place in September 2025, the most common average labor rate reported by shops is $100–$119/hour. Nearly 50% of shops set their labor rate between $100 and $139/hour. 

• $140–$159: 19%  
• $160–$179: 12%  
• $180–$200: 9%  
• >$200: 3%  
• <$100: 7%

While labor rates continue to creep up across the country, the question remains as to whether or not they're increasing enough. As Todd Hayes wrote in his Ratchet+Wrench column on labor rates, there's more at risk than your income when your labor rates stagnate: Labor gross profit erodes, ARO plateaus, technician productivity stalls, capacity becomes underutilized, and owner confidence slips. 

To be fair, an estimated 85% of shops already increased their labor rates in 2024. But costs have long since exceeded their 2024 levels, and even when the factors driving price increases are resolved, it's rare for prices to fall back to their pre-crisis levels. 

As Cecil Bullard, founder and chairman of the board of The Institute for Automotive Business Excellence, warns in the report, the average labor rate simply isn't scaling with the industry's needs. "This is contributing to the technician shortage, which will only deepen if we don’t have more to offer future technicians,” he writes.

Now isn't the time to play catch-up. While just 24% of shop leaders point to compensation as a key factor in the tech shortage, 67% of technicians surveyed said low pay was a primary driver. Although it's far from the only option, addressing labor rates directly fuels a shop's ability to offer competitive pay and retain top talent.

Consider making a labor rate review a focused annual event. If the idea of charging more makes you nervous, remember Hayes' advice: "Once value becomes obvious, price becomes secondary."