Concerns over potential anti-competitive practices in the fire apparatus industry took center stage during a recent Senate Homeland Security and Governmental Affairs meeting. Lawmakers scrutinized the actions of major manufacturers, particularly Rev Group and Pierce Manufacturing, amid rising alarm over supply shortages and escalating costs of fire trucks.

Senator Blumenthal expressed outrage at the critical supply issues facing firefighters, emphasizing that the current market, dominated by just three manufacturers controlling approximately 85% of the industry, is unacceptable. He highlighted the dire consequences of these shortages, citing instances where fire departments, like Greenwich, Connecticut, were forced to purchase used trucks due to lengthy delays in receiving new apparatus.

The discussion turned to allegations of anti-competitive behavior, with Mr. Misharbus, an industry observer, suggesting that the consolidation of market power through acquisitions by Rev Group—amassing a significant market share—raises serious concerns under antitrust laws. He noted that such consolidation could be presumptively unlawful and warrants investigation.

In response, representatives from Rev Group and Pierce denied any wrongdoing. Mr. Verneig of Rev Group defended their acquisitions, stating that they had saved financially distressed companies from going out of business, while Mr. Meyer of Pierce explained that dealer mergers often occur when owners retire, aiming to enhance service capabilities.

Senator Blumenthal concluded by urging the Federal Trade Commission (FTC) to investigate the market dynamics, citing evidence of exclusionary practices that may further entrench the dominance of these manufacturers. He stressed the need for transparency and competition to ensure that firefighters receive the reliable equipment they need to protect lives.

As the meeting wrapped up, the urgency for regulatory scrutiny in the fire apparatus sector was clear, with lawmakers and industry experts alike calling for action to address the pressing challenges facing fire departments across the nation.