Sens. Warren, Banks Open Bipartisan Investigation Into Harms of Private Equity in Fire Truck Manufacturing

Private equity roll-ups of fire truck manufacturers create sky-high prices and manufacturing backlogs, putting firefighters and communities in danger.
“While CEOs and shareholders pad their pockets, consolidation in the industry impedes fire fighters’ ability to do their jobs safely and effectively, squeezes fire departments’ budgets, and forces taxpayers to bear the consequences.”
Text of Letter (PDF)
Washington, D.C. –U.S. Senators Elizabeth Warren (D-Mass.) and Jim Banks (R-Ind.) opened a bipartisan investigation into the harms of private equity roll-ups of fire truck manufacturers. The lawmakers wrote to the International Association of Fire Fighters (IAFF), North America’s largest union of firefighters, seeking information about the adverse impact of private equity consolidation on firefighters and communities in Massachusetts, Indiana, and across the country.
“While CEOs and shareholders pad their pockets, consolidation in the industry impedes fire fighters’ ability to do their jobs safely and effectively, squeezes fire departments’ budgets, and forces taxpayers to bear the consequences,”wrote the lawmakers.“We have heard from dozens of fire departments in Massachusetts, Indiana, and elsewhere about difficulties they have faced related to serial roll-ups of fire truck manufacturers, including delivery delays, defective parts, and price increases.”
In 2006, private equity group American Industrial Partners (AIP) beganrolling upindependent fire equipment manufacturers, eventually consolidating four smaller companiesintoREV Group. Today, as a result of additional acquisitions, REV Group ownsabout a thirdof the fire truck manufacturing market, the largest share of any company. Meanwhile, independent companies account foronly about 20 percentof the market.
Large fire truck manufacturers may be exploiting their market power to raise fire truck prices and restrict the supply of fire trucks. In 2013, a pumper truck cost $500,000, and a ladder truck cost $900,000. Today, these prices have skyrocketed to nearly $1 million and $2 million, respectively, far outpacing inflation for heavy-duty truck manufacturing over that time period. Some manufacturers also use“floating” prices, increasing the final price of a truck after it goes into production and even withholding the delivery of the vehicles if fire departments do not agree to the price increases. At the same time, companies like REV have permanently shut down their own manufacturers’ plants, reducing manufacturing capabilities and leading to anationwide backlogin fire truck delivery.
“Rising costs and longer delivery times for fire apparatus and ambulances are hurting fire departments and communities across Massachusetts. I just ordered a fire engine that won’t be delivered for another four years. It took three years for our community to get two ambulances. These manufacturing roll-ups only make it harder for us to do our jobs and protect families,”said Mike Kelleher, President of the Fire Chiefs Association of Massachusetts and Chief of the Foxborough Fire Department.
Firefightersreportthat they are forced to use outdated fire trucks because their department can’t afford new trucks. When Los Angeles faced deadly wildfires in January 2025, more than half of the Los Angeles Fire Department’s fire trucks wereout of service, hindering the Department’s ability to effectively contain the fires. Skyrocketing costs and lengthy wait times for fire trucks and truck repairs, spurred by private equity’s entry into the fire truck manufacturing industry, leave communities across the country less safe.
“Private equity is padding shareholders’ wallets at the expense of public safety,”wrote the lawmakers.
On ashareholders’ call, REV Group’s CFO noted that manufacturing backlogs benefit the company, saying “strong backlogs” provide the “visibility and opportunity to drive significant shareholder value.”
The senators warned that private equity’s serial roll-ups may be allowing companies to increase their market share while evading antitrust scrutiny. The Federal Trade Commission and U.S. Department of Justice’s2023 Merger Guidelinesclarify that when a merger is part of a series of multiple acquisitions, the agencies may examine the whole series.
“These guidelines are important, as they make clear that antitrust enforcers have authority to investigate and unwind serial roll-ups that threaten competition in a single industry,”concluded the senators.
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