A LOOK AT TOWING AND ROAD SERVICE INDUSTRY INFLATION 2012 – 2019
TOWING AND ROAD SERVICE INDUSTRY INFLATION 2012 – 2019
65 Million drivers in the United States experience a breakdown each year. A breakdown can happen to anyone, anytime, anywhere. These stranded drivers turn to depend on service providers for support. Dynamics for these providers continue to evolve. To help better understand, we have constructed an open and public framework.
Labor is the largest expense (40% of total operating cost) for service providers and is critical to their profitability. Tow and road service operators have experienced steadily rising labor costs since 2012.
Prices for new trucks have outpaced consumer inflation, putting additional cost burden on providers. Trucks account for 20% of total operating costs.
Fuel prices have been rising since 2016, making it more expensive for service providers to perform each job. Fuel constitutes approximately 15% of a service provider's operating cost.