Why does a fire truck cost $2m
Role of Private Equity and Market Concentration
- Many commenters seize on the article’s “roll‑up” story: a PE group buying small firms, consolidating into a few big manufacturers, then raising prices and delivery times.
- Others push back: the leading firm has ~1/3 of the U.S. market and the top three ~60%, which they argue is concentrated but far from a strict monopoly.
- Some note PE owners also supplying inputs, giving incentives to raise both vehicle and component prices.
Regulation, Protectionism, and Imports
- Several threads argue NFPA/EPA/DOT and liability rules create a high regulatory barrier that blocks foreign fire trucks (e.g., European MAN/Rosenbauer, Chinese trucks at ~$100k–$600k).
- This is described as regulatory capture: incumbents lobby for safety/standards that also function as import protection.
- Others counter that strict standards are genuinely about safety and interoperability, not just protectionism.
Costs, Inflation, and Low-Volume Complexity
- One camp says much of the price jump (from $300–500k to ~$1–2M) is general inflation and higher vehicle prices; specialized, hand‑built equipment should rise faster than mass‑market cars.
- Others argue the increase far exceeds inflation and parallels other “consolidated, critical product” stories (e.g., baby formula), where a few suppliers and custom parts create long lead times and pricing power.
- Complexity is highlighted: a truck is simultaneously a heavy vehicle, high‑pressure pump, power plant, comms hub, and must be ultra‑reliable under liability risk.
Operational Realities and Volunteer Departments
- Fire service insiders note engines may drive only a few miles but idle and pump for many hours, so “low mileage” hides extreme wear.
- Volunteer and rural departments with tiny tax bases are hit hardest: aging fleets, 4–5‑year waits, and contracts allowing price increases after ordering.
Vehicle Size and Urban Form
- Several compare U.S. “massive” trucks to smaller European rigs.
- One line of discussion: big trucks drive U.S. street standards (wide lanes, more asphalt), while Europe designs smaller trucks to fit narrow, calmer streets with similar fire outcomes.
- Others claim Europe is constrained by legacy streets and compensates with more stations or better building standards.
Government Procurement, Maintenance, and Alternatives
- Some blame cities for poor maintenance and lax fleet management; others point to broader municipal budget pressures, pensions, and opex crowding out capex.
- Proposed fixes: modular containerized pump units on standard trucks, more use of smaller medical‑response vehicles, municipal/nonprofit manufacturing, and opening standards to foreign suppliers.
- Skeptics doubt these will happen given political resistance, regulatory complexity, and entrenched vendors.