The fire apparatus crisis, which, has led to exorbitant prices and delivery delays that can take years, continues to strain fire departments across North America. And the calls for accountability are growing louder.
Following the IAFF’s pressure on the United States government to intervene, state and local officials are also taking action against fire apparatus manufacturers suspected of engaging in anticompetitive practices.
Texas has launched an investigation, and Los Angeles County, California, and Milwaukee, Wisconsin, have filed lawsuits against REV Group, Inc., Oshkosh Corporation, and Rosenbauer Group. Officials in those jurisdictions cite mounting evidence that the companies have been conspiring to fix prices, restrict supply, and monopolize the fire apparatus market.
Price hikes and delays are forcing departments to keep aging apparatus in service longer, raising serious safety concerns.
“Fire fighters need modern, reliable equipment to keep our communities protected,” General President Edward Kelly said. “Departments are waiting years and paying double for essential equipment. That’s unacceptable, and it’s putting lives at risk.”
Fire fighters need modern, reliable equipment to keep our communities protected. Departments are waiting years and paying double for essential equipment. That’s unacceptable, and it’s putting lives at risk.
General President Edward Kelly
In Texas, Attorney General Ken Paxton launched an investigation into the three manufacturers for potential anticompetitive practices after multiple municipalities raised concerns about dramatic price increases and delays in delivery
“Our state’s firefighters put their lives on the line to keep our communities safe, and departments deserve fair access to reliable, up to date equipment at reasonable prices,” Paxton said in a press release. “I will not allow public safety or the well-being of our firefighters to be compromised by unethical and illegal corporate activity.”
The investigation has already uncovered several examples of alleged price hikes through existing complaints. Paxton hopes to learn more after issuing Civil Investigative Demands (CIDs), which require the three companies to hand over documents and information related to their business practices.
Los Angeles County (California) is also taking action against Rev Group – a firetruck manufacturer American Industrial Partners (AIP) formed two decades ago – as well as Pierce Manufacturing and Oshkosh Corporation.
The county has submitted an antitrust lawsuit in the U.S. District Court in Los Angeles. The suit alleges the companies “have reaped extraordinary profits on the backs of fire departments, taxpayers, cities, and counties” by creating “highly concentrated and oligopolistic markets that they control,” allowing them raise prices and reduce supply.”
The county also maintains that AIP saw an opportunity to merge independent firetruck companies that competed against one another “into an industry giant with the power to extract high prices.”
Similarly, the city of Milwaukee filed a class action lawsuit against the three manufacturers, claiming they are price-gouging and intentionally delaying the delivery of equipment.
In it, the city claims “direct competitors” would participate in “purchasing roundtables” at FAMA (Fire Apparatus Manufacturers’ Association) meetings “to exchange competitively sensitive, nonpublic information,” “coordinate the suppression of Fire Truck supply, and raise Fire Truck prices.”
According to the suit, the cost of each piece of apparatus has doubled, even tripled in some cases.
“Five years ago, that $10 million would have bought us 10 apparatus, if not 12. Now it’s getting us five,” Local 215 President Eric Daun told local media.
On top of the cost factor, the city department has also been waiting for more than a year for the delivery of three engines and several months for two ladder trucks.
These high prices and delays are a nationwide concern. Records show that these three companies have consolidated the fire apparatus market, now controlling more than 70% of U.S. production.
Rev Group and Pierce have previously denied any wrongdoing. They blame post-pandemic labor shortages and supply chain issues.
Meanwhile, the IAFF has been on the frontlines of this apparatus crisis.
Last year, the IAFF and the American Economic Liberties Project (AELP) sent a letter to the Department of Justice (DOJ) and Federal Trade Commission (FTC), calling on both agencies to open formal investigations into the consolidation of the fire apparatus industry.
And General President Edward Kelly later testified before the U.S. Senate, warning that industry consolidation is endangering fire fighters and the communities they serve.
“The data compiled by the IAFF and others leads one to conclude that these market conditions were planned and executed by corporate interests that do not share our collective goal of public safety,” Kelly told senators.
IAFF affiliates who have been impacted by apparatus delays and price increases can share their story at iaff.org/apparatus-form.
