Service Provider Cost Index

A LOOK AT TOWING AND ROAD SERVICE INDUSTRY INFLATION 2012 – 2019

SP Cost Index

TOWING AND ROAD SERVICE INDUSTRY INFLATION 2012 – 2019

The Service Provider Index measures the underlying costs of running a roadside or towing business by using publicly available federal government data from the U.S. Bureau of Labor Statistics, U.S. Energy Information Administration and FRED^® database.

Included with the index are the step-by-step framework used to build the analysis as well as an Excel model with the raw data, calculations, assumptions and sources. These files are shared as an open framework for the industry to review and to provide input.

“I’m losing drivers to Uber and now Uber Fair. Oh and Amazon too—how can I complete with the hours and those wages? In order to retain drivers on the towing side, I sometimes let the drivers pocket cash calls.”

Service Provider Business Owner, PA

“It boils down to being able to retain them financially.”

Towing and Roadside Assistance Provider Office Manager, OH, November 2018

“I’ve lost approximately 20% of my profit to insurance. In 2015, my premium was $90k for 35 trucks and now in 2018, it’s $172k for 42 trucks….and I have to have two policies because I cannot find one company to underwrite all of the risk. And to make matters worse, in February of 2019 one of the companies is leaving the market, so now I have to search for a new carrier.”

Service Provider Business Owner, CA

“My costs increase every year. California is increasing minimum wage from $11.50 to $16 over the next few years. That’s roughly a 60% increase in labor rates that I’ll have to absorb. Gas prices increase every year. Insurance rates are spiking. I can’t keep up with my costs if my rates don’t increase more regularly.”