Are Fire Departments Overpaying for Fire Trucks?

Every city government and fire department has wrestled with questions about the costs of fire apparatus, but more so in recent years. Some observers have noted that costs are at record highs and have contributed to a serious crisis. Departments and local governments must consider whether they are being gouged and whether laws are being broken.

For those who are paying too much, help may be available. Cities and departments are filing antitrust lawsuits to challenge various alleged anticompetitive business practices that have led to overpriced fire trucks. If higher costs have impacted your department or city, look into your legal options with the Richmond law firm of Phelan Petty Injury Lawyers.

Prices have clearly gone up

It’s not seriously debatable whether the prices of fire trucks and other apparatus have gone up. One cost trend analysis shows that the price of new trucks has roughly doubled from about $450,000 in 2014 to over $850,000 in 2024. Another report indicates that the price of many engines now exceeds $1 million, with ladder trucks topping $2 million.

These price hikes have not occurred in a vacuum. As the cost of new fleets continues to go up, cities and fire departments are also facing related problems such as:

• Slower delivery times: Even for the departments and cities that can afford new trucks, they are sometimes waiting up to four years for the apparatus to arrive. Wait times were once as long as 12 to 18 months just a few years ago.
• Higher maintenance costs: For the departments and cities that cannot buy new apparatus, they are forced to spend more on truck maintenance. New parts and labor simply cost more, with limited supply chains aggravating the problem.
• Unreliable equipment: Repair and maintenance work can only go so far until parts and entire trucks have to be replaced. Despite their best efforts to make do with aging fleets, cities still risk having trucks that break down and endanger the lives of firefighters and civilians.
• Service concerns: The effects of aging fleets are being seen in Richmond and other cities, where officials have reported that outdated apparatus can compromise emergency service. This poses a serious threat to public safety.

Market consolidation makes a difference

Every industry is dealing with higher costs right now, but the issue is especially acute for the fire apparatus industry. Some groups have alleged that these higher costs are due to market consolidation, and there is considerable evidence to support this claim.

Only three companies control up to 80% of the fire apparatus industry, according to some estimates. This means that a limited number of companies are actually manufacturing new trucks. The resulting limits on supply have driven prices much higher than many expected.

But market consolidation could have worsening effects as the demand for fire service grows. Rapidly expanding cities are unable to keep up with the needs of citizens and business owners. They need new trucks but are finding them prohibitively expensive.

Other possible explanations

While the U.S. Senate has conducted a hearing to consider price fixing and other anticompetitive causes of higher prices, alternative explanations exist. These include:

• Supply chain shortages stretching back to the COVID-19 pandemic
• Shortages in the skilled labor force necessary to build new trucks
• Inflation in the price of components like electronics and hydraulics
• Ongoing backlogs
• Customized builds that limit efficiency and delay delivery times

Although these reasons could explain the problem, at least in part, they do not necessarily absolve manufacturers of responsibility. For example, REV Group closed manufacturing facilities in Virginia and Pennsylvania despite the backlog. In other words, corporate decisions can make already existing problems much worse.

When fewer companies control the market, plaintiffs allege they may be able to artificially limit supplies to raise prices. This is one possible explanation for the higher prices that departments in Richmond and elsewhere in the country are being forced to pay.

Has the question of overpaying been settled?

The matter has not yet been resolved, which is why there are active antitrust lawsuits pending against the industry. Cities, fire departments, and other civil authorities have taken this step because they accuse major corporations of price fixing and market manipulation.

Federal antitrust laws such as the Sherman Act and Clayton Act are at the center of this emerging litigation. Several lawsuits are in the process of being consolidated into multidistrict litigation. Regulators have also been urged to investigate antitrust concerns.

The objective of these lawsuits is, in part, to test theories of price fixing and other illegal and unethical business practices. But the more immediate goal is to obtain practical relief for beleaguered departments and cities. This could include:

• Seeking damages: Richmond and other fire departments may have overpaid due to alleged price-fixing schemes. If so, they may be able to recover some of that money.
• Treble damages: A successful antitrust lawsuit may open the door to tripling the damages that the defendants could be ordered to pay.
• Litigation expenses: Courts can award attorneys’ fees and court costs to plaintiffs and thereby offset some of the expenses of litigation.

Does your city qualify for legal action?

In light of the circumstances and evidence, the question of whether fire departments and cities are overpaying for fire trucks is a valid one. If you represent one of these organizations that have been struggling with higher costs, it’s time to consider your legal rights and options.

Let the legal team at Phelan Petty Injury Lawyers take a look at your unique situation. We can review the pricing issues that are plaguing your fire department, explain how antitrust litigation could provide real solutions, and then get to work on a customized legal strategy.

We understand the financial burdens that cities and departments are facing, which is why we offer a free, no-obligation case evaluation. We also represent clients on contingency, which means you pay nothing unless we secure a favorable settlement or verdict for you.

If your department or city cannot afford new trucks and you’re not sure what your next step is, get in touch with the Richmond office of Phelan Petty Injury Lawyers. You can schedule your initial consultation today.