Technician Utilization Rate
Definition
Technician utilization rate is the percentage of a tech's paid hours that are actually billed to customers as productive work.
What Technician Utilization Rate Means for Your Business
What it means
If a tech is on the clock 40 hours a week and bills 28 of them, utilization is 70%. The other 12 hours vanish into drive time, shop time, training, and idle time.
Why it matters
Every percentage point of utilization is real money. A shop with 10 techs that raises utilization from 55% to 65% adds 400 billable hours a week, which can be worth over $2 million a year depending on rate.
How contractors use it
Shops track utilization weekly per tech and publish the leaderboard. Common levers include better dispatch, tighter scheduling windows, truck stock, and cutting out unnecessary shop trips.
Real-World Example
A commercial plumbing company boosted utilization from 58% to 71% through smart dispatch. Across 14 techs at $165 billed per hour, that added $4.8 million in annual billable revenue.
Related Terms
Billable Hours
Billable hours are the portion of a technician's paid time that is actually invoiced to customers as productive service work.
Non-Billable Time
Non-billable time is any hour a technician is paid for but is not invoiced to a customer, including drive time, shop time, training, and idle time.
Route Optimization
Route optimization is the practice of sequencing a technician's daily stops to minimize total drive time and fuel cost.
Smart Scheduling
Smart scheduling uses automation to assign jobs based on technician skill, location, parts availability, and priority instead of manual dispatcher judgment alone.
First-Call Resolution
First-call resolution is the percentage of service calls that are fully fixed on the technician's first visit, with no return trip required.
Put This Into Practice with Free Software
Kaldr Tech handles technician utilization rate and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.