WASHINGTON — Multiple senators have sought information in recent weeks related to the impacts of what they call “consolidated market power” of fire apparatus manufacturers.
Sens. Josh Hawley (R-Mo.) and Andy Kim (D-N.J.) sent a letter to the CEOs of three apparatus manufacturers – REV Group, Oshkosh Corp. and Rosenbauer America – arguing that the consolidation of apparatus manufacturers has ultimately led to significant delays due, in part, to “multi-billion-dollar backlogs held by your companies.” Hawley is the chairman for the subcommittee on disaster management for the Senate Homeland Security and Governmental Affairs Committee. Kim is a ranking member of the same subcommittee.
FireRescue1 obtained a copy of Hawley and Kim’s letter dated April 3, which requests the following information from the manufacturers no later than April 16:
- An itemization of all delayed deliveries of fire trucks and related equipment.
- A comprehensive explanation outlining the reasons for these delayed deliveries.
- A full accounting of prices charged for fire trucks and related equipment, including the change in prices over time.
- A complete list of complaints the manufacturers have received from fire departments seeking remediation.
The senators’ letter cites a recent New York Times article titled “As Wall Street Chases Profits, Fire Departments Have Paid the Price,” in which Edward Kelly, general president of the International Association of Fire Fighters (IAFF), said it was clear that the pandemic brought on problems, “but in hindsight, it was masking what ends up being a main driver of higher cost and lag time in production: the monopolizing of fire truck and ambulance manufacturing in the United States.”
Sen. Elizabeth Warren (D-Mass.) and Jim Banks (R-Ind.) are also looking into the issue. According to a press release from Sen. Warren’s office, the senators opened a bipartisan investigation earlier this week focusing on “the harms of private equity roll-ups of fire truck manufacturers.” The lawmakers are seeking information from the IAFF specifically about what they call the “adverse impact of private equity consolidation” on firefighters and communities in Massachusetts, Indiana and across the country. The letter reads, in part: “While CEOs and shareholders pad their pockets, consolidation in the industry impedes firefighters’ ability to do their jobs safely and effectively, squeezes fire departments’ budgets, and forces taxpayers to bear the consequences.”
REV Group, Oshkosh and Rosenbauer command an estimated 70-80% market share, according to Sens. Hawley and Kim. REV Group owns brands including E-ONE, Ferrara, KME, Spartan Emergency Response, Smeal, among others. Oshkosh owns Pierce Manufacturing. Rosenbauer Group is based in Austria and operates Rosenbauer America, with headquarters in South Dakota.
FireRescue1 reached out to Rosenbauer, REV Group and Oshkosh for comment. REV Group provided the following response:
FireRescue1 will continue to follow the senators’ requests and provide additional responses from apparatus manufacturers.
Read Sen. Hawley and Kim’s letter to apparatus manufacturers:
