CASE BACKGROUND
The nation’s bravest need fire trucks to combat fires and protect life and property. Yet soaring prices and a severe backlog in fire truck manufacturing have constrained firefighters’ ability to carry out their essential mission. From the mid-2010s to now, the price of fire trucks more than doubled and the delivery time almost tripled. Neither market principles nor inflation explain these drastic changes.
Without the timely, affordable supply of new fire trucks, fire departments have been unable to maintain an adequate fleet of fire trucks, putting cities and towns across the country at risk. In January 2025, for example, wildfires raged through Los Angeles, destroying entire neighborhoods and leading to hundreds of deaths. At the time the fires broke out, 100 of the 183 fire trucks owned by the Los Angeles Fire Department were out of service.
A New York-based private equity firm, American Industrial Partners (AIP), founded and controlled REV Group, Inc., the largest fire truck manufacturer in the United States. Since entering the fire truck manufacturing industry, AIP allegedly executed a series of acquisitions to consolidate the market and entrench REV Group’s position as a dominant firm.
As a result of AIP’s roll-up strategy, the fire truck manufacturing industry is no longer a competitive market. Instead, it is controlled by the three largest manufacturers: Rev Group, Oshkosh, and Rosenbauer. All three manufacturers allegedly conspired to hike prices and restrict the supply of fire trucks. These companies conspired in part through the Fire Apparatus Manufacturers’ Association (FAMA), which allegedly enabled fire truck manufacturers to collude and exchange confidential trade data.
Together, REV, Oshkosh, and Rosenbauer control about 80 percent of the U.S. fire truck market. By collaborating instead of competing with each other, they have been able to enjoy an unprecedented boost in profit margins and reinforce their control over the market, while causing a dangerous shortage of fire trucks nationwide.
These skyrocketing prices and fire truck shortages are not the results of a natural market. Rather, as REV Group’s former chief executive officer put it brutally but simply: “[I]n my entire career, it’s always been about making money, which in turn directly impacts shareholder value.” “You should know,” he continued, “that at REV, it’s all about making money.”
In response to the fire apparatus crisis, a bipartisan group of lawmakers have recently sought information from fire truck manufacturers concerning potential antitrust violations. The Federal Trade Commission has also launched an investigation.

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