Elizabeth Warren Grills Fire Equipment Manufacturers on Market Concentration and FTC Study

Industry Consolidation and Price Hikes

• 🎯 Private equity has acquired independent firetruck manufacturers over the last 20 years, leading to three companies controlling approximately 80% of the market.
• 📈 This consolidation has resulted in hiked prices, restricted supply, and dangerous backlogs for firefighting equipment.
• 💰 Examples include a pumper truck doubling in price from $500,000 in 2013 to $1 million today, and a ladder truck increasing from $900,000 to $2 million.
• ⏳ Lead times for firetruck delivery have extended from one year in 2019 to up to three and a half years currently.

Impact on Firefighters and Communities

• 🚒 Firefighters rely on adequate equipment to protect communities, but a lack of apparatus has forced them to use pickup trucks with ground ladders.
• ⚠️ This situation is dangerous, especially for rescues on upper floors, and deviates from established emergency response standards.
• 🚨 The extended delivery times, even for streamlined production lines, mean critical equipment can take 2 to 3 years to deliver.

Calls for Investigation and FTC Study

• 🔍 Senator Warren, President Kelly (representing firefighters), and Chief Ruben have called for an investigation into the fire equipment manufacturing industry.
• ✍️ Letters have been sent to the Department of Justice and the FTC to investigate potential anti-competitive practices and barriers to competition.
• 🗣️ An FTC Section 6(b) inquiry is seen as crucial to shed light on the practices of dominant firms and understand why smaller manufacturers struggle to compete, such as acquiring necessary materials like steel.

Manufacturer Response to FTC Study

• ❓ Representatives from REV Group and Pierce Manufacturing were asked if they would support an FTC study into the industry's market share effects.
• 🤝 Both representatives stated they have been engaged with the FTC, supplying information and cooperating with inquiries.
• 🤷‍♂️ However, they were hesitant to commit to supporting a formal "study," with one representative stating they didn't know the difference between an inquiry and a study, leading to accusations of evasion.
• 💡 Senator Warren emphasized that if the companies are confident in their practices, they should not fear a study, questioning why there would be hesitation if they have "nothing to hide."