Why Fire Truck Prices Have Doubled in the Past Decade

Fire departments and municipalities, both here in Richmond and throughout the country, have noticed a significant increase in the price of new trucks. These increases strain already limited budgets and potentially put firefighters and communities at risk. But critics say they are not by accident.

Alleged intentional market manipulation by a handful of key corporate players has made access to new trucks more difficult. Fortunately, fire departments, city governments, and others can potentially initiate legal action to address the fire apparatus crisis. The firm of Phelan Petty Injury Lawyers takes a closer look.

Market consolidation and the price hike

Over the last several years, a number of factors have combined to substantially raise the price of fire trucks. The International Fire & Safety Journal (IFSJ) identifies market consolidation of the fire apparatus industry as a main cause. The IFSJ reports that just three companies exercise control over at least two-thirds of the industry:

• REV Group
• Oshkosh Corporation
• Rosenbauer

The International Association of Fire Fighters and American Economic Liberties Project state that the average price of a pumper truck has risen to $1 million, and a single ladder truck is now $2 million. Increases like this have affected Richmond-area fire departments and others.

The above companies are accused of effectively shutting out competition and, in turn, raising prices. One of the methods these corporations have used is known as floating prices. These contractual terms allow them to raise prices even after the pricing agreement has been signed.

Fire departments may have little practical choice but to agree to these terms since they are already facing extensive delays in the delivery of new fire equipment. For example, some fire departments have to wait four years for a new truck. Put simply, they have little bargaining power with the industry giants.

Local budgets are no match for the price hikes, and the federal government has offered limited support so far. For example, as the IFSJ points out, a $500,000 federal grant was not enough to buy a truck or stem delays for the Grant, Pennsylvania, fire department. Already burdened emergency services there and elsewhere suffer as a result.

Supply shortages and shortfalls

A related problem is shortages and shortfalls in the fire apparatus industry. The limited supply is largely due to three distinct factors:

• Fewer plants: REV Group, for example, closed several manufacturing plants in Virginia and Pennsylvania. While the company claims this move was made to standardize production, others say it was designed to create an artificial shortage and thereby drive up prices.
• Limited production: What’s notable about the REV plant closures is that they were done while the company’s backlog grew. The plants that have remained open can only produce so many fire trucks at a time, and they simply cannot keep up with the demand.
• Supply shortages: There isn’t enough existing supply on the market to meet the demand, either. As mentioned below, some departments in Virginia have had to borrow fire trucks from other municipalities.

Delays in new equipment delivery

Unfortunately, it’s not unusual for fire departments in Richmond and elsewhere to wait several years to receive new equipment. In the meantime, they must contend with outdated equipment that risks death and injury to firefighters and civilians. More specifically, departments are forced to deal with:

• Slower fire suppression: Older trucks, pumps, and hoses cannot deliver water as quickly. Leaks, low water pressure, and broken equipment can delay fire suppression.
• Mechanical failures: Los Angeles provides an unfortunate example of how unreliable trucks and equipment can wreak havoc. Many of the city’s fire department trucks were out of service during recent disastrous wildfires.
• Higher risks for firefighters: Delayed fire suppression and mechanical failures mean that fires burn out of control longer. As any firefighter can attest, just a few seconds of delay can cost lives and property.

Understanding the price effects in Richmond and beyond

Market consolidation, shortages and delays, and higher prices are not abstract concepts in the world of firefighting. They have real and negative effects on the fire apparatus industry, endangering firefighters and civilians alike. Lives can be lost and property destroyed simply because a few companies are accused of putting their profits above public safety.

Municipalities across Virginia have noted these problems, among others:

• At least two to three years of delay in receiving new trucks
• Backlogs of engine and ladder trucks
• Trucks that are going out of service
• High costs to replace engines and other parts
• Departments having to borrow trucks from other municipalities
• Limited resources and longer response times

Legal options for addressing the crisis

While the news is grim, there is hope. Departments and local governments are turning to the courts to seek relief from the alleged market and price manipulations that have devastated their emergency response services. They have filed lawsuits alleging anticompetitive behavior under federal antitrust law, including the Sherman Act, with remedies available under the Clayton Act.

Filing a lawsuit can help to not only challenge alleged monopolistic conduct and unfair pricing schemes, but it can potentially bring relief in the form of:

• Recovering taxpayer money that was allegedly spent on price-inflated trucks and equipment
• Recovering treble (triple) damages, where available under federal antitrust law
• Improving new equipment delay times, clearing backlogs, and facilitating more innovation in the fire apparatus industry
• Demanding attorneys’ fees and court costs to offset the expense of litigation

How the Richmond law firm of Phelan Petty Injury Lawyers can help

If you are a fire department, volunteer fire department, or city or local government that has experienced higher prices, limited supplies, and equipment delays, it’s time to speak to our firm. We are taking legal action to challenge the market controls that have imperiled firefighters and communities here in Richmond and elsewhere.

Let us take the time to review the situation that has impacted your local organization and harmed your fire service. We can determine if you are eligible to file a lawsuit aimed at recovering compensation and helping to bring an end to the fire apparatus crisis.

Our firm represents clients on a contingency fee basis. Not only do clients pay no litigation costs or attorneys’ fees up front, but they don’t owe us anything unless we win. If we are unable to secure a settlement or verdict for our client, then they pay us nothing.

Would you and your organization like to take part in fighting back against the price increases? Would you like to learn more about your legal options and how we can help you seek monetary relief? If so, get in touch with Phelan Petty Injury Lawyers today to schedule your free initial case evaluation.