Find Efficiency in Fixed Ops
A new report shows how service departments can maximize their profitability through efficiency, productivity and the right tools in technicians' hands.

Technicians who used automated tools saw an increase in profit per customer-pay repair order, total hours sold, hours per repair order, and effective labor rates.
For service departments to maximize profitability, efficiency and productivity must be prioritized, including giving technicians the tools to automate processes when applicable.
Reynolds and Reynolds analyzed effective labor rates, profit per customer-pay repair order (post-warranty jobs), and hours - both total hours sold and per repair order - to determine where service departments can make improvements.
It’s no surprise that effective labor rates were up for every demographic and volume classification. Rates were up between $4 and $7 on average year-over-year depending whether the area is major urban, metro, community or rural, and between $5 and $7 depending on the shop’s volume.
Reynolds' latest Fixed Operations Golden Metrics report notes that price elasticity remains a concern and that once the market reaches its limit, dealerships won’t be able to keep charging customers more, making efficiency and productivity key.
Profit per customer-pay repair order was up across every demographic except in major urban areas, which saw a $22 decrease. Notably, the report found that with larger populations profits increase, but as volume increases, profits fall.
Rural areas had the greatest surge in average total hours sold, up 6% year-over-year. Major urban areas and communities experienced minor increases, while metros were relatively flat.
Based on the monthly averages from the past two years, Reynolds found a clear trend in consumer behavior patterns: service activity spikes in the fall and spring, in particular September and March. But it held off on citing a cause for the seasonal spikes, saying that there are too many variables at play.
Rural areas had the greatest increase in average hours per repair order, up 13% year-over-year, but larger urban areas sold the most hours per repair order “due to a higher demand for service and opportunity.”
Study results also show that service centers with lower volume were able to sell more hours per repair order “due to availability of time.”
Reynolds found that one of the best ways to maximize efficiency is giving technicians tools to automate certain processes, like determining parts availability and cost. Across all volume classifications, technicians who used automated tools brought an increase in profit per customer-pay repair order, total hours sold, hours per repair order, and effective labor rates.
More Industry

Future-Proof Your Business
A new industry outlook details several ways that automotive companies can use the rise in artificial intelligence and advanced technologies to their advantage.
Read More →
Dealership Buy-Sells Keep Going Up
First-half transactions reflect continued high appetite for acquisitions despite falling profits, the most sought-after franchises bringing record prices.
Read More →
California Makes Electric Moves
New laws in the Golden State aim to advance consumer access to public electric-vehicle chargers and reduce costs and barriers to its infrastructure.
Read More →
Rare Earths Independence
Automakers seek alternatives to sourcing battery raw materials in volatile markets roiled by trade wars and disrupted supply chains.
Read More →
Volvo Appoints President and CEO
Klaus Zellmer will replace Håkan Samuelsson as president and CEO of Volvo Cars in 2027 as the company makes strategic shifts toward profitability and cash generation.
Read More →
Fix Up Your Fixed Ops
The department may hold untapped potential for your dealership. This issue of the magazine shares ways to unearth it and turn it around for more profits.
Read More →
Easier EV Charging Touted
Wireless charging pad provides automatic powering by just parking, says its maker, which sees a cable-free charger future as global EV demand grows.
Read More →
Vehicle Ownership Costs Rising
Fuel prices, car prices and depreciation are all factors for new vehicles, and this year’s average annual numbers are up with the inclusion of electrics and hybrids.
Read More →
Toyota Tops Longevity List
Toyota, Lexus, Honda and Acura came out on top in iSeeCars’ latest longest-lasting car brand study, all eclipsing the overall average chance of reaching 250,000 miles.
Read More →
From Military Service to Service Bay
Shifting Gears aims to alleviate the strain caused by the auto industry’s technician shortage while easing the sometimes jarring transition that veterans face after leaving the Army.
Read More →