Two auto repair shops can charge the same labor rate and still walk away with very different profits. So, what makes the difference?

In his latest article, Hunt Demarest, CPA, explores how location, shop type, and operational efficiency influence profitability, using insights from PMA’s 2026 Benchmark Report. This article was originally published on Ratchet+Wrench.com and reveals why comparing your business to the wrong benchmarks can lead to misleading conclusions.

Drawing from industry data, Hunt explains why shops with higher labor rates aren’t necessarily the most profitable and why bigger operations don’t always outperform smaller ones. From technician productivity and parts margins to overhead and regional differences, he highlights the factors that truly shape financial performance.

He also examines emerging industry trends, including rising parts costs, technician shortages, and growing opportunities created by deferred vehicle maintenance.

Rather than chasing industry averages or focusing on a single metric, Hunt encourages shop owners to evaluate their numbers in context and learn from businesses facing similar conditions.

Want to know how your shop really stacks up against the competition? This is a must-read.

👉 Read more on Ratchet+Wrench and discover how smarter benchmarking can help you identify opportunities, improve efficiency, and build a more profitable shop.