Senate Inquiry into Fire Truck Manufacturers Explained

The rising costs, market consolidation, and production delays of fire trucks are not just local phenomena. The ongoing fire apparatus crisis has gotten the attention of the federal government. A U.S. Senate inquiry into alleged questionable business practices has provided an impetus for departments and municipalities to take legal action.

If you represent a fire department or local government that has been harmed by higher prices and related problems, learning more about this investigation can help you make a case for relief. The Richmond law firm of Phelan Petty Injury Lawyers takes a look.

Why is the Senate investigating fire truck manufacturers?

Growing concerns over market consolidation and its effects, such as higher prices and production delays, prompted a bipartisan Senate inquiry. Senators are worried that concentrating production power in the hands of a few powerful corporations will jeopardize firefighters and communities nationwide.

More specifically, the Senate is looking into these troubling issues:

• Skyrocketing fire truck prices: By many estimates, the average price of fire engine and ladder trucks has doubled over the past decade. For instance, the cost of some ladder trucks is now a staggering $2 million. Local governments and departments simply can’t afford them.
• Extensive production backlogs: Some departments have reported having to wait two to four years for new apparatus, and in the meantime, they simply use outdated and unreliable equipment. Critics argue that consolidation has contributed significantly to this problem.
• Acquisitions and reduced competition: Firms like REV Group have acquired and sometimes closed fire truck manufacturing plants. Three companies, including REV, Oshkosh, and Rosenbauer, control up to 80% of the market. Reduced competition has pushed prices up and supplies down.
• Possible antitrust concerns: In light of higher prices, firefighter organizations and other groups have called on senators and regulators to investigate possible violations of the Sherman Act and Clayton Act. These federal laws prohibit trusts, monopolies, and anticompetitive market practices.
• Risks to public safety: All of the above problems have real effects on firefighter and community safety. When departments and local governments cannot afford to replace aging equipment, emergency response times grow longer, and lives are put at risk.

The industry’s response

The federal attention has triggered substantial public sentiment against the manufacturers that largely control the fire apparatus industry. But those companies are fighting back by blaming higher prices and production delays on:

• Pandemic-related supply chain disruptions
• Skilled labor shortages
• Inflation
• Unusual demand

To date, these companies have denied claims of collusion, price-fixing, market manipulation, and artificial supply restrictions.

Virginia’s connection to the crisis

The federal attention is welcome news to many departments and municipalities across the country. Departments in and around Virginia, including in Richmond, have felt the pressure of higher prices and market consolidation. Here is the local impact of a national crisis:

• Aging trucks compromise emergency response times: The Richmond Fire Department needs new trucks and is forced to rely on an aging fleet in the meantime. Captain Richard Lewis reports that the problem has already compromised emergency services.
• Plant closures: REV Group has closed fire truck manufacturing facilities in Virginia and Pennsylvania. This decision was made despite extensive backlogs, leading many to argue it was part of an alleged effort to boost profits at the expense of safety.
• Other departments suffering: Fire departments in the broader Mid-Atlantic region are facing the same issues that Richmond is experiencing. Unfortunately, many of these departments are smaller or volunteer forces, which have suffered even more.

The outcome of the investigation

Although there have been no major federal enforcement or legislative actions to date regarding the fire apparatus industry, the U.S. Senate investigation has led to a number of developments:

• Public calls for higher regulatory scrutiny: Senators called on the Federal Trade Commission (FTC) and Department of Justice (DOJ) to use their powers to investigate and determine whether the manufacturers violated antitrust laws.
• States and municipalities launching legal action: Several state and local governments have filed lawsuits against the manufacturers alleging anticompetitive behavior. It’s expected that other municipalities will join the growing list of plaintiffs.
• Multidistrict litigation: Several lawsuits have already been combined into multidistrict litigation (MDL) proceedings. Courts often take this approach to avoid inconsistent pretrial rulings, reduce duplicative discovery, and save costs.

How your organization can join the legal fight

If you represent a fire department or local government that has been impacted by higher prices and extensive delays for fire apparatus, you may have a legal claim. As mentioned above, plaintiffs are filing lawsuits to challenge alleged anticompetitive practices and bring relief to a beleaguered industry. More specifically, these lawsuits have requested:

• Damages: Many plaintiffs are seeking financial recovery for the inflated prices they allegedly paid for fire trucks and other equipment.
• Treble damages: Also known as triple damages, these amounts may allow successful plaintiffs to recover three times the damages they sustained under federal antitrust law.
• Attorneys’ fees and court costs: These can help offset the expenses of litigation. Our firm also handles these cases on contingency (see below).

Legal action may be able to prevent these practices from emerging again in the future. It can also save lives. Fire departments that are hampered by aging trucks and equipment are less responsive in emergencies. The lives of firefighters and civilians, not to mention significant amounts of property, are put at risk due to alleged anticompetitive corporate behavior.

Our commitment to you

Phelan Petty Injury Lawyers is committed to justice, an attitude that stems from our extensive work in personal injury cases. Now we want to take that fight to the fire apparatus industry. We have seen how alleged unfair business tactics can jeopardize communities both here in Richmond and beyond.

While we monitor developments at the federal level, we aren’t waiting for regulators or legislators to do the right thing. We offer fire departments and local governments a free initial case evaluation to review their situation and explain their legal options. What this means for you is that:

• You pay no upfront costs of litigation
• You only pay if we settle or obtain a favorable verdict
• If we do not win or settle in your favor, you owe nothing

We take the time to understand the struggles that departments and municipalities are facing in light of the fire apparatus crisis. Then we develop a customized legal strategy to help them push back. Connect with our Richmond office today to get started.