‘Sticker shock’: Providence sues fire truck manufacturers over rising prices

PROVIDENCE — The city of Providence is suing major fire truck manufacturers over the skyrocketing cost of firefighting equipment, claiming the consolidation of the industry and an “anticompetitive scheme” have driven up prices and left municipalities waiting years for new fire trucks.

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The lawsuit, filed in federal court in Rhode Island on Friday, accuses three major manufacturers and a trade organization of doubling or even tripling the cost of some firefighting equipment, while also failing to keep up with demand.

In one example of “sticker shock,” the suit says the Providence Fire Department bought an aerial ladder truck for $1.3 million in 2020. “Just a few years later, Providence paid $2 million, almost double the 2020 price, again for substantially similar equipment,” the suit claims.

Fire Chief Derek Silva said the $2 million ladder truck, purchased in 2023, still hasn’t arrived. The city is also waiting for another six engines that it ordered in 2023.

The suit comes amid national concern, including multiple other lawsuits, about the state of fire truck manufacturing. The International Association of Fire Fighters calls it a “crisis,” with departments across North America waiting years for trucks to be made, and paying significantly more than they did five years ago. Congress launched an investigation into the issue last year, led in part by Massachusetts Senator Elizabeth Warren.

Part of the problem, according to IAFF and the city’s lawsuit, is the consolidation of companies that manufacture fire apparatus. The city also claims the Fire Apparatus Manufacturers’ Association, a trade group, is sharing confidential information among manufacturers, reducing competition.

“The City of Providence cannot avoid the harms inflicted by this market transformation,” the lawsuit reads. “The City is paying more, to wait longer to upgrade and modernize its fleet, while fires do not stop and emergencies continue to demand action to save lives and property.”

In another example, the suit claims Providence bought three trucks from Pierce Manufacturing — one of the defendants — for $449,000 each in 2021. Three years later, in 2024, the same model from the same manufacturer costs $734,000.

“To make matters worse, Providence’s firefighters will have to wait until at least 2027 to receive the new vehicles,” the lawsuit reads.

OshKosh Corporation, one of the defendants that also owns Pierce Manufacturing, pushed back on the claims Monday.

“The allegations in this lawsuit are without merit, and we are defending ourselves in court,” spokesperson Timothy Gilman told the Globe. “Oshkosh remains focused on delivering safe, high-quality fire trucks while continuing to reinvest in our U.S. operations to meet record demand.”

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The company’s vice president of sales, Dan Meyer, testified before a US Senate committee in September that “historic” demand, global supply challenges, and inflation are to blame for the rising prices and manufacturing delays.

“When there is a longer lead time to produce fire trucks, the price at the time of ordering must factor in cost increases over that longer period,” Meyer said. “As supply chains were strained and costs increased during the pandemic, our customers took a hit, and we did too.”

Rosenbauer America LLC, another defendant, also denied the claims.

“We strongly disagree with the claims made in these lawsuits, and Rosenbauer America will assertively defend itself, said Ali Rader, a lawyer for the company. “Rosenbauer America will not let this distract from doing what we do best — supporting first responders and those they keep safe by delivering cutting-edge firefighting and rescue technology and equipment communities rely on.”

The Fire Apparatus Manufacturers’ Association did not immediately respond to a request for comment, nor did the Terex Corporation, another defendant.

Silva said the delay in getting new fire trucks has impacted the department, causing them to rely on older trucks and also buy used ones.

“I’ve had to buy used fire apparatus from other parts of the country to buy time until our apparatus shows up,” Silva said. But those trucks may not be the same type or style Providence prefers. “So we have a hodge-podge of trucks,” he said.

The city has just two of the large tower ladder trucks with a bucket on the end, one of which is 20 years old, Silva said, which is why they bought a new one.

“Our trucks are aging, so they’re down for service longer than they would be had we’d been able to place them on the regular cycle,” Silva said.

In the suit, Providence is seeking damages and requiring the companies to surrender “ill-gotten profits” and unwind anticompetitive practices.

“Providence’s taxpayers should not be forced to pay these inflated prices because of anti-competitive, price-fixing practices within the industry,” Mayor Brett Smiley said in a statement. “When the tools and equipment that are used by our firefighters are put in jeopardy, public safety is put at risk.”

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