Oregon Auto Shops’ Labor Rates Surge by 25% Since 2021

The Northwest Automotive Trades Association conducted the survey, which shed light on what Oregon shops are charging for various services.


A survey conducted earlier this year by the Northwest Automotive Trades Association (NATA) showed the general shop labor rate is up statewide to about $151, a 25% increase from 2021, the last time the survey was conducted.

NATA said it distributed the survey to more than 500 shops throughout Oregon, both members and non-members of the association. More than 100 shops participated. Those shops averaged just under seven full-time employees each, including an average of 4.3 fulltime production employees and 2.5 fulltime office staff.

In addition to finding a 25% increase in the general shop labor rate, the survey found:

Shops tend to charge slightly more than their general labor rate for diagnostic work. There is even more range in diagnostic rates shop to shop, from a low statewide of $95 to a high of $239 per hour.

Of shops charging a flat fee for an oil change -- as about two-thirds of shops do -- the average was $60, up nearly 18% since 2021. Of those charging based on a labor rate, the average labor rate was $90, up nearly 70% from three years ago. NATA noted the sample size for this category was quite small.

There is significant variance in how much shops mark-up prices on parts. Mark-up on used parts is fairly consistent across the state, with shops typically charging a customer about $156 for a used part that costs the shop $100; this has remained mostly unchanged since 2017. But the customer charge for a $100 new OEM part ranges from a low of $105 to a high of $250. The range in mark-up on aftermarket parts is even wider, from a low of
$112 to a high of $242. Some shops noted that some of their parts pricing is based on list prices for the parts.

More than one-third of shops statewide are not charging for hazardous waste disposal. Of those charging a flat-fee per work order for it, the statewide average is about $7, up about $3 from 2021.

There is also wide variation in how shops charge for shop supplies. The flat-fee used by some shops averages about $7, while other shops base the charge as a percentage of labor, typically between 4% and 5%, and often with a cap.

The statewide data findings have a margin of error of about 10%. This means that, if the statewide average labor rate was found to be $100, there is 95% confidence the actual average is between $90 and $110. Geographic regional data may have higher or lower margins of error based on sample size.

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