US Congressman The investigation has begun We investigate the rise in fire engine prices and waiting times that have denounced fire stations around the country, and whether private equity companies are responsible.
A bipartisan investigation by US Senators Elizabeth Warren (D-Mass.) and Jim Banks (R-Ind.) was Wide range of complaints from the fire station Details on delayed delivery, failed components, and rapidly escalating pricing.
Ladder truck prices jumped from $750,000 to $900,000 in the mid-2010s to about $2 million today, but Pamper trucks currently cost over $1 million.
Similarly, delivery times have exploded, growing from less than a year before the pandemic to four and a half years in some cities.
This has led fire departments across the United States to suffer severe delays and rising costs. This leaves cities like Los Angeles dangerously equipped in emergencies.
More than 100 of the 183 trucks at the Los Angeles Fire Station were out of work at the recent Palisades Wildfires. This is a situation exacerbated by aging fleets and sudden rises in vehicle costs.
“Private equity is padding the wallets of shareholders at the expense of public safety,” the senator wrote in a letter to the International Association of Firefighters (IAFF), highlighting the urgent need to understand the role financial investors play in the key public safety industry.
The main focus of the study is American Industrial Partners (AIP). Over the past 20 years, this has acquired several specialized vehicle manufacturers, including those that make fire engines.
These companies were integrated into the Rev Group and later made public, but remained operational influence of AIP. According to the New York Times.
Rev Group closed two manufacturing plants in Pennsylvania and Virginia in 2021 as part of its strategy to boost profit margins.
Previously, the fire truck manufacturing market was made up of many small local businesses.
However, the Wall Street company recognized the challenges of small and medium-sized manufacturers, leading to widespread industry integration. Rev Group alone leads up to 30% of the market, where Rev, Oshkosh Corporation and Rosenbauer collectively dominate around 70-80%.
Timothy Sullivan, former CEO of Rev Group, once outlined the goals to analysts, outlining profit margins from around 5% to over 10%.
“You have to bring them to fold, you have to give them religion, and they have it now,” he explained.
However, aggressive strategies and subsequent plant closures coincided with a surge in backlog.
Rev Group’s outstanding orders have swelled from around $1 billion before the pandemic to about $4 billion today, with expected delivery times of up to three years.
IAFF general president Edward Kelly said the pandemic initially blurred fundamental issues in the industry.
“But in hindsight, it hiding what would become the main driver of higher costs and delays in production: the monopoly of US fire trucks and ambulance manufacturing,” Kelly said.
Smaller cities such as Watertown, New York and Camden, New Jersey have reported years of delays in new vehicles and are relying on purchasing second-hand equipment.
Meanwhile, cities like Seattle, Atlanta and Houston all deal with outdated fleets, formulate maintenance costs and reduce operational preparation.
Even if funds are available, delivery bottlenecks mean that new trucks can take years to arrive.
This post is being asked for comment from AIP and Rev Group.
