Why Fire Departments Are Waiting Years for New Fire Apparatus

Anyone who has ever served as a firefighter knows that time is of the essence when it comes to emergencies. Delays can mean the difference between life and death. Unfortunately, the fire apparatus industry itself is experiencing significant and dangerous delays in receiving new equipment.

These delays are frustrating to the men and women who put their lives on the line to extinguish fires. They are also contributing to a crisis that risks unnecessary deaths, serious injuries, and extensive property destruction. The Richmond law firm of Phelan Petty Injury Lawyers is taking legal action to try to end these delays.

Understanding the fire apparatus delays

According to the Fire Apparatus Manufacturers’ Association (FAMA), a fire department was once able to order a new rig and receive it within a year to 18 months. Delays can now take several years. There are several factors that account for this:

• Disruptions in the supply chain: Fire trucks are complicated vehicles, and their manufacturing depends on various components and systems. These include hydraulics, foam systems, and electronics. Shortages that set in during the COVID pandemic are still hampering the manufacturers of these critical parts.
• Labor shortages: Building fire trucks requires a specialized and experienced workforce, and sadly, that aspect of the labor market is lacking in Richmond and elsewhere. It’s difficult to locate the welders, electricians, and technicians that the industry relies on to manufacture trucks.
• Custom-built trucks are even more complex: Standard fire trucks are complicated enough compared to other commercial vehicles, but custom-designed trucks take even longer to build. A custom truck may have unique pump systems, hose layouts, and other parts that will add further delay.
• Ongoing backlogs: This is another problem stemming from the pandemic. Because of the uncertainty in supply, many local governments and fire departments delayed placing new orders. Once the pandemic eased, they all placed orders at roughly the same time. The resulting massive backlog persists today.

The role of market consolidation and higher prices

The above problems are not unique to the fire apparatus industry. But there are two features of the industry that have, arguably, more than any others, contributed to the delays. These issues have prompted some departments and municipalities to explore legal action.

Market consolidation

One notable contributing factor to the production delay is the fact that three corporations – REV Group, Oshkosh Corporation, and Rosenbauer – control a major portion of the apparatus industry. Critics have contended that their dominance of the market has significantly reduced competition in these and other ways:

• Fewer production lines: When a few companies control the industry, they often tighten supplies. For example, REV Group closed plants in Virginia and Pennsylvania. Critics have argued that this was intentional to limit supply and thereby drive up prices, but it also causes new production delays.
• Consolidation limits production and innovative pressure: Critics argue that when a handful of companies control an industry, there is less pressure to speed up production and innovate. This appears to be happening now, in part, because of market consolidation.
• More competition among departments: While there is less competition among manufacturers, there is far more among the departments and municipalities that need the fire trucks. Smaller and volunteer fire departments often cannot compete and are forced to use old apparatus.
• Order backlogs can increase: There’s also less pressure to clear backlogs, a fact clearly observed with the REV Group closures. These decisions were made despite backlogs, indicating less priority for meeting demand.

Rising prices

Ladder trucks alone can now exceed $2 million. Departments and municipalities that cannot afford this price tag are forced to use outdated and unreliable equipment. In the meantime, they will delay putting in purchase orders for new, more expensive equipment. These are just some of the specific ways that higher prices force delays:

• More budget allocations required: Departments and municipalities that cannot afford more expensive fire apparatus must make requests for additional budget approvals. These requests take more time.
• Waiting for new revenue sources: If these organizations cannot win budget approval, they must wait for tax increases, bond referendums, and other changes that will bring in more money. But these can take months or years to win approval.
• More money shifted to maintenance: Faced with aging fire apparatus, departments and local governments move more money into repair and maintenance efforts. This further depletes the available funds for new purchases.
• Staggered replacements: Another attempt to offset rising costs is to stagger fleet replacement rather than order multiple fire trucks at once. Although this helps alleviate budgetary limitations, it ultimately delays the replacement of aging trucks.

Do Richmond-area departments and cities have any recourse?

Fire departments and local governments nationwide, including in Virginia, have felt the effects of production delays. But knowing that two of the main causes of delay are market consolidation and pricing increases has helped many organizations fight back.

That’s because two federal antitrust laws, the Sherman Act and the Clayton Act, may provide recourse. Fire departments and local governments can file a lawsuit to seek relief from the market consolidation, price increases, and other problems that are causing delays. Plaintiffs may be able to seek the following:

• Treble (triple) damages, where available under federal antitrust law
• Recovery for inflated prices they previously paid
• Attorney’s fees and court costs to offset the expense of litigation
• Seeking injunctive relief aimed at stopping anticompetitive practices that lead to further delays

How our law firm can help your department or municipality

If you are one of the following entities that have been impacted by production delays of fire apparatus, Phelan Petty Injury Lawyers may be able to assist you:

• City government
• County government
• Fire district
• Fire department
• Volunteer fire department

We know from our experience with personal injury cases that when a small number of companies put their profits first, local communities and individuals can suffer. We have observed this same problem with limited production of fire apparatus.

Phelan Petty Injury Lawyers is committed to helping fire departments and municipal governments restore fairness to the fire apparatus industry. They have an important job to do in protecting their firefighters and their communities, and we want to help by pushing back against unfair market tactics.

If you are frustrated by the delays and backlogs of fire trucks and other apparatus, schedule a free, no-obligation case evaluation with us. We represent clients on contingency, so you pay nothing unless we settle or win a verdict in your favor. Connect with our Richmond office today to get started.