Sen. Banks introduces resolution calling for FTC investigation into fire truck manufacturing industry

Submitted by Office of U.S. Senator Jim Banks

U.S. Senators Jim Banks (R-Ind.) and Elizabeth Warren (D-Mass.) introduced a bipartisan resolution directing the Federal Trade Commission (FTC) to investigate potential anticompetitive practices in the fire truck manufacturing industry. The resolution calls on the FTC to examine allegations of price fixing, price gouging, serial acquisitions, monopolization, and other potential violations of federal antitrust laws that have driven up costs and delayed the delivery of critical firefighting equipment.

Banks

“When anticompetitive practices leave firefighters without the equipment they need to save lives, it becomes more than just an economic issue,” Sen. Banks said. “This is about public safety and I’m proud to join this bipartisan investigation as we fight to put the safety and security of the American people first.”

The resolution follows concerns raised by firefighters, local officials, and municipalities in Indiana, Massachusetts, Vermont, Virginia and across the country about skyrocketing fire truck prices and growing delivery backlogs.

Finkam

“Public safety is measured in minutes, not years,” Carmel Mayor Sue Finkam said. “The faster our first responders reach someone in need, the better the outcome. Delays in getting the equipment they need put lives and property at risk. I’m grateful to Senator Banks and Warren for leading this bipartisan effort to help communities put lifesaving equipment into service faster.”

As the resolution notes, just three manufacturers control between 70 to 80 percent of the U.S. fire truck market. Since 2013, the cost of a pumper truck has nearly doubled, from approximately $500,000 to nearly $1 million, while ladder truck prices have climbed from roughly $900,000 to nearly $2 million. Meanwhile, delivery times have increased from one to two years to as long as four-and-a-half years.

The resolution directs the FTC to submit a report to Congress within one year detailing:

• The extent of anticompetitive practices and potential violations of federal antitrust laws in the fire truck manufacturing industry, including price-fixing, price-gouging, serial acquisitions, and monopolization.
• The impact of these practices on firefighters, fire departments, municipalities, states, and small businesses.
• Recommendations for legislative or other actions to restore competition and protect public safety.

The resolution also requires the FTC to notify Congress if companies fail to cooperate with its investigation.

Click here to read the full text of the resolution.