Episode
The New Economics of Auto Repair: Rising Rates, Fewer Cars, Higher Profits [RR 1080]
- Published
- Feb 24, 2026
- Duration seconds
- 2576
- Processing state
not_requested
Actions
POST https://stenobird.com/v1/public/podcasts/remarkable-results-radio-podcast-829239/episodes/the-new-economics-of-auto-repair-rising-rates-fewer-cars-higher-profits-rr-1080/transcription-requests
Idempotently request low-priority transcript generation for this episode.GET https://stenobird.com/podcast/remarkable-results-radio-podcast-829239/the-new-economics-of-auto-repair-rising-rates-fewer-cars-higher-profits-rr-1080.md
Read the agent-friendly Markdown representation of this episode resource.
Summary
Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode In this episode, Carm Capriotto speaks with Tom Ham about the rising labor rates shaping the automotive repair industry. Drawing from the Labor Rate Tracker tool on the Automotive Management Network, Tom explains how shops across the country are steadily increasing rates, with many approaching the $200 per hour threshold. Geographic trends reveal higher rates in regions like the San Francisco Bay Area and Connecticut, and Tom recommends gradual monthly increases of $1 to $2 to maintain profitability without alarming customers. They also discuss shifting business realities, including rising repair order values driven by vehicle complexity, higher parts costs, and increased technician compensation, even as car counts may level off. Many shops are also setting vehicle age limits to improve efficiency and reduce liability. Looking ahead, Tom highlights how artificial intelligence will enhance diagnostics and workflow, supporting the rise of a highly skilled mechanical specialist working alongside AI. The episode offers a forward looking view of an industry evolving through smarter pricing, cultural alignment, and advanced technology. https://laborratetracker.com/ Timestamps (00:00:00) Introduction & Industry Updates (00:02:30) Tom Ham discusses the "Labor Rate Tracker" and how shops are breaking through psychological pricing barriers as they approach $200 per hour. (00:05:00) Geographic Heat Maps: A breakdown of where rates are highest (Bay Area, Connecticut) and lowest (Midwest, South), and the use of heat maps to visualize the data. (00:08:15) The Incremental Increase Strategy: Tom advises shop owners on how to raise labor rates by small amounts (1–2) to overcome the fear of price adjustme…