Repair Order Value Up in 2008

Posted 2/2/2009
By Jon E. Vance

The Guest Editorial in the December 2008 issue of AutoInc. gave us a reality check that not all bad economic news should be accepted at face value.

A close look at the 2007-2008 year-over-year repair order comparisons provides continued encouragement that our business remains successful in a distressed economy.

While the average number of ROs per shop was down by 3.4 percent in 2008, the average RO value was up 3 percent.

This $8 average increase to $267 compared to $259 in 2007 helps offset the loss of volume.

So while an average mechanical repair shop did fewer jobs, each job was worth more. The financial impact was less dramatic than the numbers might first suggest.

Looking closer, ASA shop average RO value was 18.7 percent higher than the national average. ASA shop RO value was $317 in 2008, compared to the industry average of $267.

In addition, RO count for ASA shops remained higher than national averages the second year in a row.

Keep your eye on the facts. March through the summer should see an uptick in repair order volume for mechanical repair businesses.

ASA Members: Log in to see how your numbers measure up!

Stat Corner is written by Jon E. Vance, PMP, project manager with Mitchell 1. Mitchell 1 is a longtime associate member of ASA as well as a sponsored benefit provider.