If you’ve been following along with this three-part series on our new 2026 Benchmark Report, we’ve covered industry trends, what separates top-performing shops from everyone else, and now we’re getting to a question I hear all the time:

“How do I know if I’m comparing my shop to the right shops?”

Because here’s the truth: your shop isn’t exactly like anyone else’s.

A diesel shop in Texas doesn’t operate like a European shop in Maine. A rural general repair shop faces different challenges than an urban import specialist. If you’re comparing yourself to the wrong benchmark, you might walk away with the wrong conclusions.

That’s why we continue expanding the Benchmark Report every year.

One thing that stood out to me this year was how much geography influences results—but probably not in the way you’d expect.

For example, the Southeast posted the highest average profitability in our data, while the Southwest came in at the bottom. Does that mean every shop in the Southeast is successful and every shop in the Southwest is struggling? Of course not.

In fact, some of our highest-performing individual shops came from places people wouldn’t necessarily expect.

The lesson isn’t that location determines success. It’s that your market creates different conditions, and you have to understand those conditions before making decisions.

Another surprise? Labor rate alone doesn’t tell the story.

One region in our report averaged some of the highest labor rates in the country, yet it produced some of the lowest profitability. On the flip side, other regions charged less per hour but kept a much larger percentage of revenue as profit.

Why?

Because profitability is never about one number.

Labor rate matters. Productivity matters. Parts margins matter. Overhead matters. You can’t look at one metric in isolation and expect it to explain everything happening inside your business.

That’s why I always encourage shop owners to look at the complete picture.

We also looked at whether bigger shops automatically make more money.

The answer?

Not really.

Once again, efficiency beat size.

Whether a shop was doing well over a million dollars a year or operating at a smaller scale, profitability was remarkably similar. Larger sales don’t guarantee larger profits if your systems aren’t working.

The same idea showed up when we broke the data down by shop type.

General repair shops, diesel shops, and European specialists all have different business models.

European shops typically charge higher labor rates and often run stronger technician productivity. Diesel shops frequently handle larger repair orders. General repair shops usually benefit from lower operating costs and broader customer demand.

Each model has its own strengths.

Each also comes with its own challenges.

That’s exactly why benchmarking by shop type matters so much. Comparing a diesel operation to a general repair shop isn’t always apples to apples.

One point I really want shop owners to remember is this:

Percentages don’t pay your bills.

Dollars do.

Sometimes a lower percentage on a larger repair still produces more actual profit than a higher percentage on a smaller job. Context matters. That’s why I caution people against chasing a single percentage without understanding what’s driving it.

Beyond the financial data, we also added more industry outlook information to this year’s report.

Parts costs continue to be a concern.

The technician shortage isn’t getting any easier.

Hybrid vehicles continue gaining ground in repair shops.

And one statistic really jumped out at me—more than 40% of vehicles on the road are overdue for service.

To me, that’s opportunity.

Yes, customers are delaying maintenance. Yes, many households are feeling financial pressure. But those repairs don’t disappear forever. Eventually, deferred maintenance becomes necessary repairs.

The shops that stay profitable, communicate well with customers, and continue building strong systems will be in the best position to capture that work.

That’s really what this entire benchmark series has been about.

The goal isn’t to tell you that your shop has to look like someone else’s.

The goal is to help you understand where you are today, learn from businesses facing similar challenges, and make smarter decisions moving forward.

Every successful shop has its own story.

The best benchmark is simply the one that helps you write a better next chapter.