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Cost matters—to field technicians and service delivery companies alike. Over the past year, technical resource costs in the field services space have risen roughly 10 percent across the board. Market conditions are impacting field service’s bottom line across three dimensions: travel, equipment, and labor.
Generally speaking, field service costs are up 8%, with some variance based on type of work and service-level agreement turnaround. Three dominant factors are pushing technical labor rates up: inflation, the great technology reset in retail, and a labor shortage in the field services space.
TOP TAKEAWAYS
- Gas costs are up 40% YoY, making it more expensive for field techs to get from worksite to worksite.
- Overall costs related to travel are up 6%.
- And equipment costs have increased by 18%, impacting the cost of all types of work.
- According to the US Department of Labor, the average wages of private sector workers increased by 5% over the course of 2021.
A note about our model: Field Nation is a software company and labor marketplace that enables companies to connect with thousands of independent contractors with skills in a variety of work types. Companies are responsible for defining and posting the work, negotiating and engaging the technician, and reviewing and approving each work order. Independent contractors are responsible for entering and updating their platform profiles to advertise their skills, experience, and preferences, as well as choosing when and how they want to work and manage their business.
