Fixed Ops Journal - June 2017 - 40

FIXED OPS JOURNAL

FIXED OPS

BY THE NUMBERS

The National Automobile Dealers Association's latest statistical profile of auto retail
finances reports that in 2016, franchised new-vehicle dealerships wrote more than 315
million repair orders, made $109.5 billion in service and parts sales, and employed
266,258 technicians. Other fixed operations highlights: Service, parts and body shop
sales - and warranty work as a percentage of those sales - grew steadily from 2014
to 2016. These figures are for the average light-vehicle dealership.
Service, parts and body shop sales
As % of total sales
As % of total gross
Warranty as % of total sales
Repair orders written
Total service & parts sales
per customer R.O.
Total service & parts sales
per warranty R.O.
Number of technicians*
Total parts inventory
Average customer
mechanical labor rate

2014

2015

$6,187,243
11.7%
45.2%
15.7%
17,070

$6,458,094
11.4%
45.4%
17.6%
15,621

$6,972,698
11.7%
47.3%
18.2%
18,882

2016

$255

$257

$268

$230
17
$328,114

$239
15
$332,703

$283
16
$389,036

$135

$136

$111

For the average luxury-brand dealership
Service, parts and
body shop revenue

$11,656,618 $11,826,547 $12,665,377

Warranty as % of fixed ops revenue

19.1%

20.6%

19.0%

$5,859,437

$6,336,484

14.9%

16.9%

18.0%

Service, parts and body shop revenue $7,415,807

$7,729,079

$8,292,311

18.0%

18.9%

$5,401,407

$5,875,582

17.1%

17.4%

For the average mass-market brand dealership
Service, parts and body shop revenue $5,572,800
Warranty as % of fixed ops revenue

For the average import-brand dealership
Warranty as % of fixed ops revenue

16.1%

For the average domestic-brand dealership
Service, parts and body shop revenue $5,077,304
Warranty as % of fixed ops revenue

15.2%

Here's how dealerships' total service and parts sales broke down in 2014-16
(figures in billions of dollars).
PARTS SALES

Customer mechanical
Customer body
Wholesale
Counter
Warranty
Internal
Other
Total

2014

2015

2016

$13.79
$3.34
$13.35
$2.69
$8.69
$4.92
$3.90
$91.73

$14.20
$3.42
$13.63
$2.77
$10.28
$5.24
$4.16
$53.72

$16.53
$3.84
$17.04
$3.00
$11.67
$6.16
$6.49
$64.70

SERVICE LABOR SALES

Customer mechanical
Customer body
Warranty
Sublet
Internal
Other
Total

2014

$16.17
$4.19
$8.45
$3.23
$7.40
$1.60
$41.03

2015

$16.62
$4.20
$9.65
$3.38
$7.94
$1.67
$43.47

2016

$18.90
$4.29
$9.57
$4.33
$8.30
$3.70
$49.03

Technicians accounted for 24.2% of all dealership employees last year, and other service and parts employees represented another 26.4%.
*Includes body shop

PAGE 40

Source: NADA Data 2014-16

JUNE 2017



Table of Contents for the Digital Edition of Fixed Ops Journal - June 2017

Fixed Ops Journal - June 2017
Contents
Editor’s Letter
Service Counter
Legal Lane
Web threads
Chitty’s law
Port of call
Richard Truett
Featured film
Wisdom of age
Future techs
Intake, outgo
Feedback
NADA numbers
Top 50
Guest comment
Five Minutes With
Shop Talk
Fixed in Time
Fixed Ops Journal - June 2017 - Intro
Fixed Ops Journal - June 2017 - Fixed Ops Journal - June 2017
Fixed Ops Journal - June 2017 - Cover2
Fixed Ops Journal - June 2017 - Contents
Fixed Ops Journal - June 2017 - Editor’s Letter
Fixed Ops Journal - June 2017 - 5
Fixed Ops Journal - June 2017 - Service Counter
Fixed Ops Journal - June 2017 - 7
Fixed Ops Journal - June 2017 - Legal Lane
Fixed Ops Journal - June 2017 - 9
Fixed Ops Journal - June 2017 - 10
Fixed Ops Journal - June 2017 - 11
Fixed Ops Journal - June 2017 - Web threads
Fixed Ops Journal - June 2017 - 13
Fixed Ops Journal - June 2017 - 14
Fixed Ops Journal - June 2017 - 15
Fixed Ops Journal - June 2017 - 16
Fixed Ops Journal - June 2017 - 17
Fixed Ops Journal - June 2017 - Chitty’s law
Fixed Ops Journal - June 2017 - 19
Fixed Ops Journal - June 2017 - 20
Fixed Ops Journal - June 2017 - 21
Fixed Ops Journal - June 2017 - 22
Fixed Ops Journal - June 2017 - 23
Fixed Ops Journal - June 2017 - 24
Fixed Ops Journal - June 2017 - 25
Fixed Ops Journal - June 2017 - 26
Fixed Ops Journal - June 2017 - 27
Fixed Ops Journal - June 2017 - Port of call
Fixed Ops Journal - June 2017 - 29
Fixed Ops Journal - June 2017 - 30
Fixed Ops Journal - June 2017 - Richard Truett
Fixed Ops Journal - June 2017 - Featured film
Fixed Ops Journal - June 2017 - 33
Fixed Ops Journal - June 2017 - Wisdom of age
Fixed Ops Journal - June 2017 - 35
Fixed Ops Journal - June 2017 - Future techs
Fixed Ops Journal - June 2017 - 37
Fixed Ops Journal - June 2017 - Intake, outgo
Fixed Ops Journal - June 2017 - Feedback
Fixed Ops Journal - June 2017 - NADA numbers
Fixed Ops Journal - June 2017 - 41
Fixed Ops Journal - June 2017 - Top 50
Fixed Ops Journal - June 2017 - Guest comment
Fixed Ops Journal - June 2017 - Five Minutes With
Fixed Ops Journal - June 2017 - Shop Talk
Fixed Ops Journal - June 2017 - Fixed in Time
Fixed Ops Journal - June 2017 - Cover3
Fixed Ops Journal - June 2017 - Cover4
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