5 takeaways for shop owners from the 2026 Ratchet+Wrench Industry Survey
Survey of 430 shop owners reveals revenue ranges, staffing levels, KPI tracking benefits, average repair-order values, and current posted labor rates as practical benchmarks

LAS VEGAS – August 11, 2026 – Aftermarket trade publication Ratchet+Wrench published a survey in late June with responses from 430 “owners and managers of independent (and some franchise) auto repair shops.”
The survey was conducted in Q1 of 2026 and “provides a broad look at industry identifiers, including background information, educational background, shop data, location by region, and average revenue.”
Below are five findings that stood out as useful benchmarks for shop owners.
1. Repair shop revenue range
A plurality of respondents (30%) said their repair shop earns between $1 million and $2.5 million in annual revenue. However, these ranges vary widely, as 14% put their annual revenue at under $250,000 at the low end, while one in 10 earns more than $2.5 million annually.
Here’s how the responses stacked up:
- Under $250,000 – 14%;
- $250,000-$499,999 – 16%;
- $500,000-$749,999 – 14%;
- $750,000-$999,999 – 12%;
- $1,000,000-$2,499,999 – 30%;
- More than $2,500,000 – 10%; and
- unknown – 4%.
2. Team size and number of bays
According to the report, “the typical shop is a mid-sized operation with the largest share of respondents operating facilities between 2,000 and 4,999 square feet (33%), employing 3-4 team members (24%), and running 3-4 bays (25%).”
It’s worth pointing out that a combined 59% of respondents also operate 5 or more bays and 62% employ five or more people.

3. Tracking KPIs is correlated with higher revenue
The survey report notes that “KPI tracking remains one of the strongest indicators of success.” Nearly 9 in 10 respondents (86%) say they track KPIs. Those who do are “three times more likely to exceed $1 million in revenue.”
What KPIs should shop owners track? Several named in the report include:
- percentage of overall sales volume from maintenance;
- percentage of overall sales volume from repair work;
- percentage of overall sales volume from tire sales;
- overall gross profit margin;
- gross profit margin on parts sales;
- gross profit margin on labor sales; and
- overall net profit margin.
Tracking KPIs is also important for shop owners who one day aspire to sell their business.
4. Average repair order per vehicle
Nearly three-quarters of respondents (74%) said the average repair order is valued at $800 or more. As was the case with revenue, the average repair order ranges widely. Some 15% said their average order was $2,000 or more, while 7% said it was below $800.
Here’s the breakdown on average order size:
- $2,000 and above – 15%;
- $1,500-$1,999 – 18%;
- $1,200-$1,499 – 24%;
- $1,000-$1,999 – 9%;
- $800-$999 – 8%;
- Below $800 –7%;
- Does not measure –15%; and
- Does not know – 4%.
5. Posted labor rates
Nearly half of respondents (49%) have raised their labor rates in the last two years. Of course, the inverse is true as well – 51% haven’t boosted their labor rates.
The survey provided solid benchmarks when it asked, “What is your posted labor rate?” and here are the results:
- Less than $80 – 7%;
- $80-$89 – 9%;
- $90-$99 – 12%;
- $100-$109 – 12%;
- $110-$119 – 7%;
- $120-$129 – 17%;
- $130-$139 – 5%;
- $140-$149 – 6%; and
- $150 or more – 25%.

Get the full report from Ratchet+Wrench
The full report has many more interesting findings that cover the leadership, workforce, tools and technology, among others. No registration is required; it is available here: 2026 Ratchet+Wrench Industry Survey Report.
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