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    "excerpt": "These firefighters just wanted to save lives. Private equity had other ideas\nThis past Valentine\u2019s Day, a firefighter behind the wheel of an enormous ladder truck felt his brakes give out.\nHe was driving in the heart of Chicago, on a busy city street, about to lose control of a truck that was supposed to help him save people\u2019s lives. He looked around, panicked. The 25-year-old truck \u2014 and the nightmare \u2014 picked up speed.\nHe had three choices: drive into traffic, hit a local grammar school, or plow into the side of a church on the corner. He swerved, narrowly avoiding a pole, and picked the church.\n\u201cIt was pretty tragic,\u201d says Pat Cleary, president of the Chicago Fire Fighters Union Local 2. \u201cWe were just happy no one got injured.\u201d\nIt wouldn\u2019t be the last time something like this happened to one of the departments\u2019 96 rigs. Weeks later, another truck dropped a rear axle responding to a medical emergency. And in January, the department threw a mock 30th birthday for one of its trucks \u2014 it was older than many firefighters on the force.\nA birthday cake celebrating D545\u2019s 30th birthday. (Chicago Fire Department/Facebook)\nFor years, the Chicago fire department has struggled to repair and replace its aging fleet of trucks, the priciest of which now come at a cost of $2m+.\nAnd it\u2019s not just in Chicago: Across the fire truck industry, increased consolidation has led to spikes in demand, production delays and sky-high prices, leaving departments nationwide scrambling to provide life-saving services to their citizens.\n\u201cThere\u2019s a monopoly in the business. They\u2019re taking over,\u201d Cleary says. \u201cCivilians are going to suffer.\u201d\nHow did we get here?\nEmergency vehicles didn\u2019t start out as the custom builds driving down our streets today.\nBack in the 1950s, they were largely just trucks outfitted with special add-ons \u2014 ladders, pumps \u2014 to differentiate them from the vehicle that might deliver your furniture. Family-owned businesses sprung up across the country to serve a region\u2019s specific needs, and competition kept prices low.\nOlivia Heller/The Hustle\nFast forward 60 years, and those businesses were contending with aging founders, depleted municipal budgets, and declining fire-truck orders. Sensing an opportunity, a private equity group called American Industrial Partners (AIP) began to roll up the industry.\nWait: what\u2019s a roll up? It\u2019s when a company buys up a spate of smaller businesses and merges them together to create a conglomerate.\nAIP took its bundle and called it the REV Group, now one of the three leading manufacturers of fire trucks in the U.S. REV captures about a third of the country\u2019s $3B in annual fire truck sales, with runner-up Oshkosh reporting revenue of $767m (~26%) and Rosenbauer International at $254m (~9%).\nAfter AIP\u2019s acquisitions, the company closed some manufacturing plants. They encouraged brands to share designs, limiting available options. And in the meantime, exacerbated by COVID, the production bottleneck grew, which gave the companies more control over prices and supply.\nWhat has that meant for the industry?\n\nRising prices: by the mid-2010s, the average engine truck cost $300k to $500k. Today, they cost more than $1m. Ladder trucks, now mostly built custom, are even more expensive: as high as $2m.\nProduction backlogs: New vehicles are taking two to 4.5 years from order to delivery.\nShifting contracts: \u201cHere\u2019s the real crime: now they have what they call floating prices,\u201d says Ed Kelly, general president of the International Association of Fire Fighters (IAFF). Because of production backlogs, companies have included clauses in contracts that mean they can change the price of an order long after it\u2019s been placed.\n\nThe result has left departments across the country struggling. In 2023, Evanston, Illinois, spent $2.3m on their latest rig to replace an 18-year-old reserve truck. Storm Lake, in Iowa, recently committed $2.8m over ten years to replace a ladder truck that\u2019s 35 years old. When an audit last year found Atlanta firefighters were using pick-up trucks because so many of their rigs were out of service, the city earmarked $18m to bolster its fleet.\nWhen Ann Arbor, Michigan, approved spending $2.4m on a new truck, the fire chief told reporters: \u201cthe price of fire trucks has become bonkers.\u201d\nIt also means fire departments are now competing against one another for the vehicles, leaving municipalities and the public to pay the price.\nThe Hustle\nIn January, as wildfires ravaged L.A., its fire chief appeared on national news to explain that 100+ of its ~200 fire trucks were sitting out of commission on a nearby lot. They\u2019d fallen into disrepair, or were too old to keep on the road, and the department couldn\u2019t afford to fix or replace them.\nLater that month, Texas anti-trust lawyer Basel Musharbash asked \u201cDid a private equity fire truck roll-up worsen the L.A. fires?\u201d, and it thrust an issue departments across the country were contending with into the national conversation.\nBrothers helping brothers\nNick Magoteaux, a retired Ohio firefighter who runs Brothers Helping Brothers (BHB), an organization that raises money and donates equipment to small and rural fire departments across the U.S., sees how detrimental the shift in prices has been, particularly on volunteer departments without the funding of bigger municipalities.\nIn the U.S., ~70% of fire departments are volunteer-run.\n\u201cOur department was pretty strapped for cash. A lot of times we\u2019d be trying to make ends meet, trying to find equipment for our team,\u201d he says. When his friend and fellow firefighter, Art Springer, passed away, he founded BHB in his honor.\nConsolidation is affecting the entire fire industry, from dispatch software to PPE. (Brett Coomer/Houston Chronicle via Getty Images)\nMagoteaux serves departments that typically have budgets of under $100k/year, and says that the grants those teams once relied on now seem increasingly uncertain as government cuts persist. Instead of buying new, he says, many of those departments are turning to used trucks that cost between $50k and $200k. (The National Fire Protection Association guidelines say fire trucks should be no more than 15 years old.)\nBut it\u2019s a patchwork solution that tends to end the same way: with a department taking out hundreds of thousands in financing to fund a new rig.\n\u201cEvery department is facing these issues,\u201d he says. \u201cDepartments are struggling.\u201d\nOlivia Heller/The Hustle\nAnd, he says, it\u2019s not just trucks that are being affected. Dispatch software, vehicle parts and repairs, and personal protective equipment manufacturing are all being consolidated, leading to rising prices and scarcity across the industry.\nAnti-trust action?\nEd Kelly was one of those kids who always dreamed of being a firefighter. As a boy, he looked up to his grandfather, father, and uncle who all did the job.\nToday, in addition to his work at Boston\u2019s Fire Department, he\u2019s the general president of the International Association of Fire Fighters (IAFF).\nHe sees the issue from the board room and on the ground working shifts at the fire station.\nIn Boston, for example, Kelly says they\u2019ve run out of spare fire trucks to swap in when an apparatus ages out, so they\u2019ve taken to riding around in pickup trucks with masks, hoses, and ladders piled in the back.\n\u201cIf you\u2019re hanging out the window on the fifth floor, we can\u2019t get you on a ground ladder,\u201d he says. \u201cYou\u2019re jumping.\u201d\nA rig responds to a wildfire in the Pacific Palisades in January 2025. (Photo by Jason Ryan/NurPhoto via Getty Images)\nBack in May, the IAFF co-authored a strongly worded letter to the Department of Justice, alongside the American Economic Liberties Project, urging them to investigate what it called an aggressive consolidation effort over the last decade.\nKelly says they\u2019ve seen some progress: Senator Elizabeth Warren got on board, and so did Senator Josh Hawley across the aisle, sending a letter requesting more information from the big three manufacturers.\nREV Group told The Hustle that inflation, COVID backlogs, and labor shortages have all contributed to rising prices and increased demand.\nOrders were up 43% from 2011 to 2023, a REV Group spokesperson pointed out, and they\u2019ve introduced new training and modular build options to lessen the load. \u201cOur team has worked hard to overcome these obstacles and are making good progress,\u201d she said.\nIn the meantime, departments from Atlanta to Seattle to Los Angeles are contending with fleets that threaten to endanger the firefighters and the public they aim to serve.\n\u201cThe industry will say, \u2018Oh, it\u2019s all supply chain,\u2019\u201d Kelly says.\n\u201cThat\u2019s all B.S. It\u2019s about consolidation.\u201d",
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    "title": "Why does a fire truck cost $2 million?"
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