Tekmetric, a Houston-based leading auto repair technology company, was named the winner of a silver Stevie® Award in the Achievement in Growth category in The 20th Annual American Business Awards®.
Tekmetric was nominated in the Achievement in Growth category for the company’s tremendous growth and expansion in the last year.
The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit and non-profit, large and small.
Co-founded in 2016, Tekmetric offers an all-in-one SaaS business management system for auto repair shops. As the auto repair industry’s leading cloud-based solution, Tekmetric has grown from just a few customers to more than 3,000 shops across the U.S.
In the last year alone, Tekmetric’s revenue has increased by more than 115%, a reflection of its role as a trusted industry solution for increasing shop efficiency.
“Tekmetric strives to deliver premier service and value to auto repair shop owners who partner with us, and this unmatched level of care wouldn’t be possible without the outstanding team we have built,” said Prasanth Chilukuri, Co-CEO and Co-Founder of Tekmetric.
“To experience an expansion that more than tripled to more than 95 talented professionals from across the U.S. and Europe has been an incredible journey. We are honored to have been recognized in the Stevie for our continued growth and leadership in the auto repair industry.”
More than 230 professionals worldwide participated in the judging process to select this year’s Stevie Award winners.
Nicknamed the Stevies®® for the Greek word meaning “crowned,” the awards will be presented to winners at a gala ceremony at the Marriott Marquis Hotel in New York on Monday, June 13. Tickets are now on sale.
“We are so pleased that we will be able to stage our first ABA awards banquet since 2019 and to celebrate, in person, the achievements of such a diverse group of organizations and individuals,” said Maggie Miller, president of the Stevie Awards.
Find out what shops in your state are charging, and how to set a labor rate that keeps your shop profitable
In the automotive repair industry, your labor rate is more than just a number on an invoice — it is one of the key metrics that drives your business's profitability and overall growth. For shop owners, staying competitive while maintaining healthy margins requires a clear understanding of how labor costs fluctuate across the country. But knowing the national average is only half the picture. The more important question is: how does your shop compare?
Whether you are running a small independent shop or a high-volume operation, knowing where you stand relative to the average labor rate in your state — and against top-performing shops in your market — is essential.
This guide covers the current landscape of automotive repair labor rates across all 50 states, the factors that drive those numbers, and a step-by-step roadmap for setting a rate that supports your shop's long-term success.
Methodology and Key Terms
Tekmetric built this auto repair shop index as a community resource, backed by data from more than 10,000 shops across North America. Shops can use this tool to benchmark themselves and see how they compare state by state.
Key Terms to Know
Labor rate: The retail price per hour charged to the customer for repair services.
Flat-rate: A pricing model where a job is billed based on a predetermined number of hours from a labor guide, regardless of how long the actual repair takes.
Effective labor rate (ELR): The actual amount of labor revenue earned per billed hour after accounting for discounts, menu pricing, and unbilled time.
Understanding these terms will help you interpret the data below and apply it to your specific situation.
Mechanic Labor Rates by State
The average labor rate across the United States is $132 per hour, with the lowest state at $85 per hour and the highest at $197 per hour. Labor rates vary significantly by state, primarily driven by local cost of living and competition.
📊 See How Your Shop Compares — Free
The data below tells you what shops in your state are charging. But the labor rate is only one piece of the picture. The Tekmetric Shop Index lets you benchmark your shop across the four metrics that actually drive profitability — ARO, car count, parts margin, and effective labor rate — against thousands of real shops nationwide.
It's free, takes less than two minutes, and requires no Tekmetric account.
Why do auto repair labor rates vary so widely from state to state? A few key factors drive the differences.
Cost of Living
In states with a higher cost of living, shop owners face higher wages to attract technicians, more expensive rent, and elevated utility and supply costs. Those overhead realities push labor rates up — not because shops are padding their margins, but because the math demands it.
Shop Type and Specialization
Dealerships typically carry the highest labor rates because of their overhead, factory-trained technicians, and reliance on OEM parts. Independent shops often have more pricing flexibility, particularly for routine services like oil changes. Specialty shops — focused on European vehicles, diesel, or performance — tend to command higher rates as well.
A diagnostic job requires a different skill set than a brake job. Shops that employ ASE-certified technicians or master technicians can and should charge accordingly. The rate reflects the expertise required to do the work correctly.
Start with what it actually costs you to have a technician on the floor. This includes:
Wages and overtime
Payroll taxes
Benefits (health insurance, 401k)
Workers' comp and liability insurance
Training and certifications
Divide that total annual cost by the number of billable hours that technician produces in a year. That's your loaded cost — and it doesn't include any profit margin yet.
Step 2: Account for Overhead
Your labor revenue also needs to cover the cost of running the business:
Rent
Utilities and shop supplies
Marketing and software
Taxes
Step 3: Determine Your Target Profit Margin
Tekmetric shops average 65% labor profit margins. If your loaded cost for a technician is $45 per hour and you want a 65% margin, your base labor rate should be at least $128 per hour.
Step 4: Benchmark Against Your Market
Your internal numbers come first, but you can't ignore the local market. If your rate is $128 and every comparable independent in your area is at $100, you need to either clearly justify your value — through better inspections, faster turnaround, stronger communication — or find ways to reduce overhead. Benchmark against shops of similar size, service mix, and geography.
Step 5: Implement a Labor Matrix
Not every repair order is equal. Shops that implement a labor matrix can automatically adjust rates based on job complexity — billing more appropriately for diagnostic work or specialty repairs without manually recalculating every estimate.
Managing labor rates manually is a recipe for inconsistency and missed revenue. Here's how Tekmetric gives you the tools and data to stay ahead.
Know Where You Stand with the Tekmetric Shop Index
Before you can optimize your labor rate, you need to know how your performance compares to other shops. The Tekmetric Shop Index gives you free, instant benchmarking across four metrics: ARO, car count, parts margin, and effective labor rate. Enter your shop's numbers and see exactly where you rank against thousands of shops nationwide — no account required, no sales call, no commitment.
You can't improve what you don't measure. This is where that work starts.
Tekmetric's reporting features give you live visibility into ARO, car count, revenue, and technician productivity — so you always know how your shop is performing, not just at the end of the month.
Custom Labor and Parts Matrices
Tekmetric lets you build a labor matrix that automatically adjusts rates by job type. A custom parts matrix works the same way on the parts side, protecting your margins consistently across every repair order.
Digital Inspections That Justify Your Rate
Tekmetric's digital vehicle inspections let your team send photos and videos of needed repairs directly to a customer's phone. When a customer can see the worn brake pad or the leaking gasket for themselves, they're far more likely to approve the work — and far more comfortable with the rate attached to it.
Accurate Labor Guide Integration
Tekmetric integrates with industry-standard labor guides so your estimates are based on real, accurate times — not guesswork or memory. That means technicians get credited fairly under a flat-rate system, and your service advisers spend less time on paperwork and more time with customers.
Benchmark Your Insights Now
Knowing the average labor rate in your state gives you a useful reference point. But the shops that stay profitable long-term don't stop at state averages — they benchmark continuously, track the right metrics, and make adjustments based on data instead of instinct.
Your labor rate should reflect your actual overhead, your team's capabilities, and the quality of service your customers experience. Use the state data above as a starting point, then go deeper with the Tekmetric Shop Index to see how your shop compares across every metric that drives profitability.
Order too many parts and your money and space are tied up in inventory. Order too few and when you run out of what you need, projects come to a standstill while you wait for a delivery. That’s why you need a solid auto parts inventory management system.
Auto parts inventory management is a process that helps you decide when to buy, store, use, or sell auto parts, so you can be sure that items you need are in stock when you need them. This requires tracking parts you have on hand and streamlining the process of reordering or replacing them at the right time.
An inventory system will help your shop run more efficiently and free up a ton of time. Implement an effective system to tighten up your workflow and take your business to a higher level.
In the automotive repair industry, efficiency and organization are key to keeping customers happy and maximizing productivity. While traditional tools have always been the foundation of a mechanic’s work, modern software solutions like parts inventory management software are revolutionizing the way shops operate. By integrating software with traditional tools, mechanics can streamline repairs, reduce downtime, and focus on delivering exceptional service.
One of the biggest challenges mechanics face is delays caused by missing or misplaced parts. With inventory management software, you can always have a clear view of your inventory, ensuring the parts you need are in stock and ready to use. This eliminates the frustration of searching for or reordering parts mid-repair, expediting the entire process.
Tekmetric’s inventory management software gives you real-time updates on stock levels, so your team can quickly locate and retrieve parts when needed. By integrating this system with traditional tools, you can keep your repairs moving faster, improving turnaround times and customer satisfaction.
2. Clear organization
A disorganized shop can lead to wasted time, miscommunication, and errors. With car parts inventory software, you can create a digital inventory catalog, ensuring every part is accounted for and can be easily located. This streamlined organization makes it simple to track high-use items and plan for reordering.
Traditional tools like diagnostic equipment and repair manuals can be paired seamlessly with software features like Tekmetric’s parts ordering system, which ensures your shop has the tools and parts needed to tackle every repair. Combining digital and physical resources helps mechanics stay organized, reduce clutter, and maintain a professional work environment.
3. Less administrative work
Manual inventory management takes valuable time away from what technicians do best: repairing vehicles. By adopting auto parts inventory management software, you can significantly reduce the time spent on administrative tasks. Tekmetric automates inventory tracking, reordering, and reporting, freeing up mechanics and shop owners to focus on delivering quality service.
Automation also reduces errors in inventory counts, minimizing costly mistakes and ensuring your team always has the parts they need. With less time spent on paperwork, your shop can prioritize what matters most: getting customers back on the road quickly and safely.
4. Better customer experience
Auto parts inventory management software is designed to make your shop more efficient, organized, and customer-focused. By providing real-time updates, automated tracking, and seamless integration with traditional tools, Tekmetric helps shops stay ahead of the competition.
Closing Thoughts
For mechanics and shop owners, integrating modern tools like car parts inventory software with traditional equipment isn’t just an upgrade—it’s essential for staying competitive. By streamlining repairs, improving organization, and reducing administrative work, inventory software enables your shop to operate more efficiently and deliver better service to your customers. Invest in the tools that make a difference and see the results for yourself.
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