A Race to the Bottom…or A Path Ahead?

by Kris Burton, WMABA President

At our WMABA meeting back in February, in his address to members and attendees, Mike Anderson mentioned how, despite operating in one of the most expensive regions of the country, the D.C. market continues to reflect some of the lowest labor rates, fewest labor hours per estimate and lowest repair costs nationwide. That disconnect is more than just a statistic; it’s a growing threat to the continued operation of our businesses.

Every day, it’s becoming more and more difficult to reconcile an increased cost of living against compensation that hasn’t kept pace. In our area market, rent, wages, insurance, and overhead expenses are all rising, while the rates we are often told we have to accept for the work we do lag far behind other regions. This imbalance puts tremendous strain on shops who are already struggling to maintain quality, while needing to make constant investments in training, equipment and skilled technicians to stay relevant.

Added pressure from the growing presence of consolidators in our market is only making things worse. MSOs are reshaping pricing dynamics and making competition more fierce than ever. Independent shops, in response, may feel pressured to lower their prices – or worse, their standards – just to make ends meet.

So what does the path ahead look like? Do the independents undercut one another, creating a race to the bottom where the work we do is undervalued, and the industry is weakened as a whole? Or can we turn things around, and create a path forward and upward with a shift in mindset?

Instead of competing solely on price, we should be setting ourselves apart by honing in on the values we adhere to, and the value provided in safe, high-quality repairs performed by trained professionals, to the manufacturer’s specifications. If you work on the jobs that come into your shop the right way, for the right reasons, you’ll already be ahead of the game compared to the competition that treats every customer like just another car.

If we don’t take steps to correct course, the market will continue to dictate terms that are unsustainable. But it’s not too late to take action. We just need to be willing to stand together and change the trajectory for the greater good of the industry as a whole.

Want more? Check out the May 2026 issue of Hammer & Dolly!