New data from over 1,000 independent repair shops reads on consumer spending under cost pressure, showing labor pricing, not parts costs, as the leading driver of higher repair tickets this year

Independent repair shops charged more for labor and missed more calls in 2025 than the year before, according to the 2025 State of the Industry Report, released today by OktoRocket. Drawing on data from over 1,000 shops, the report benchmarks how rising service costs are showing up in consumer spending, alongside a staffing gap reshaping shop revenue and customer experience alike.

The average repair order rose roughly 5.5% from 2024 to 2025 across all three segments studied, tracking with a rise in effective labor rates, up 3.2% to 6.2% by segment. Labor cost as a share of revenue also climbed in every segment, a sign of cost pressure reaching consumer bills. Parts costs held roughly steady, making labor pricing the clearest driver of higher tickets. Close ratio, the rate at which recommended repairs get approved, declined across every segment even as prices rose, a signal worth watching for anyone tracking discretionary spending.

The typical shop fields over 800 inbound calls monthly but answers only about 89%, costing the median shop over $16,000 in missed revenue monthly. Shops answering above 85% write 50 to 80 more repair orders a month than lower performing shops of similar size.

The report also finds American and import shops running one advisor per four or five technicians generate less annual revenue than shops with two advisors, even though the lone advisor closes more sales, evidence of a revenue ceiling created by advisor capacity, not output.

"Rising labor rates already pressure repair bills," said Jay Power, CEO of OktoRocket. "When a shop is also understaffed at the counter, customers feel it twice: in the price, and in the experience."

About OktoRocket

OktoRocket®, headquartered in Franklin, Tennessee, is a shop management platform for independent auto repair shops in the U.S. and Canada. Solutions include an AI phone system for call coaching and spam blocking, Shop CRM for campaign communication and review management, and Shop Analytics, a real-time KPI dashboard. Learn more at https://oktorocket.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729943747/en/

Labor rates rose up to 6.2% in 2025, making them the leading driver of higher repair bills, not parts costs.