When the California wildfires raged, thousands of firefighters were involved in the rescue. However, in this firefighting operation that raced against time, the fire department faced a shocking reality: there was a serious shortage of fire trucks, and the firefighters could only wait helplessly and watch the fire spread. Behind this phenomenon, the deep-seated problems in the US fire truck market were exposed – soaring prices and supply shortages caused by capital monopoly.
Capital Monopoly: The Driving Force Behind The Soaring Prices of Fire Trucks
When the wildfire broke out, the Los Angeles Fire Department was busy summoning a large number of firefighters to the front line to put out the fire, but found that there were not enough fire trucks. The firefighters could only wait, and the front-line fire continued to spread. The problem of insufficient fire trucks exists not only in big cities like Los Angeles, but also in cities of all sizes across the United States. Digging deep into the reasons behind it, it is precisely because of Wall Street’s profit-seeking manipulation, the highly concentrated and even monopolized market, that the chaotic reality of the fire equipment industry has been led.
At present, the US fire truck manufacturing industry is controlled by three companies with a market share of 70%-80%, of which REV Group accounts for about 30%. In the 1990s, some small local manufacturers produced fire trucks. However, since the beginning of this century, many manufacturers have been acquired by Wall Street investment companies due to operating difficulties. Groups such as REV focus on creating profits. When the group went public in 2017, then-CEO Timothy Sullivan said: “The operating profit margin of the company we acquired is 4%-5%, but we will increase it to more than 10%.” In recent years, the price of fire trucks in the United States has soared-in the mid-2010s, a ladder truck was about 750,000 to 900,000 US dollars, and in recent years, the price of a ladder truck has risen to about 2 million US dollars.
Industry Dilemma: A Comprehensive Crisis from Production to Delivery
The monopoly in the fire truck industry has not only pushed up prices, but also caused serious delivery delays. As the industry consolidates, production capacity is declining. Unlike the automotive industry, it is difficult for the fire truck industry to improve efficiency through production automation. Fire stations usually replace vehicles every 10-15 years, and each vehicle is customized and cannot be mass-produced. During the epidemic, problems with the global supply chain made it difficult to purchase parts. Coupled with the labor shortage, REV Group closed its factories in Pennsylvania and Virginia after the epidemic, reducing production by about one-third, and the delay in fire truck delivery became more serious.
Los Angeles Fire Department Chief Crowley said that about 100 fire trucks were unavailable in January, which seriously affected the fire department’s ability to respond to the fire at the time. These included about 40 fire trucks and 10 ladder trucks, as well as about 40 other vehicles such as ambulances. The shortage and delayed delivery of fire trucks have become the norm, seriously affecting the daily operations and emergency response capabilities of the fire department.
American fire professionals are also very dissatisfied with the state of the fire truck market. Kelly, president of the International Association of American Fire Fighters, bluntly stated that the monopoly in the American fire truck manufacturing market is the main reason for the high price of fire trucks and delayed delivery time. “Monopoly capitalism without competition is no different from extortion.” An Arkansas fire department official said that not only is it getting more and more expensive to purchase new fire trucks, but the attitude of suppliers is also “getting more and more indifferent” and “they only recognize money.”
Social Impact: The Contradiction Between Public Safety and Capital Pursuit of Profit
The monopoly and soaring prices in the fire truck market not only affect the operation of the fire department, but also pose a direct threat to public safety. In the California wildfire, the shortage of fire trucks caused the fire to get out of control, further exacerbating the loss of life and property. This issue has also triggered widespread criticism in society of the profit-seeking behavior of capital. Kelly, president of the International Association of American Fire Fighters, bluntly said: “Monopoly capitalism without competition is no different from extortion.” Fire trucks, as infrastructure to ensure public safety, should be guided by the public interest, but they have become profit-seeking tools under the manipulation of capital.
The California wildfire is not only a natural disaster, but also a mirror that reflects the deep-seated problems in the US fire truck market. The soaring prices and supply shortages caused by capital monopoly seriously threaten public safety.
