November/December 2007

Apparatus Ideas

By Bob Barraclough

Apparatus Makers Are In A Topsy-Turvy Time

This month, I’m writing to remind people they need to be very careful to cover their butts when they buy apparatus. There’s no excuse. You need to pay attention to what I have to say as it will help to ensure you get the truck you want, in the time you expect and at the price you agreed to pay.

My presentation on the apparatus industry shows a list of over 75 fire apparatus builders that have either gone out of business or merged and faded into obscurity since 1970. That, in itself, should make apparatus buyers leery of whom they are dealing with and should get them thinking about how they can protect themselves from losing their hard earned dollars to failing companies.

Watch Out

In the 1970s the company that built highly-regarded Pirsch fire apparatus was in its heyday and was thought by many to be the most cash-rich manufacturer in the business. But by 1986, financial pressure from creditors forced the company to close its doors. A number of cities that had orders pending for Pirsch apparatus lost a lot of money.

So what is my point?

The bid price should include performance and payment bonds to be obtained by the manufacturer and made out to cover your fire department or municipality to protect you from loss in case of trouble. Require the bonds to be issued by a U.S. bank, insurance or bonding company with verifiable credit. Have the bonding company mail you a certified letter describing the bonds and attesting to their validity. Obtain the original bonds directly from the manufacturer before making any payments.

You need both a performance bond and a payment bond that assures all component parts and subcontractors are paid. You don’t want the pump maker chasing you for $20,000. If you make progress payments on a truck, the first should cover the chassis, and you should exchange your check for the manufacturer’s Certificate of Origin made out in your fire department’s name.

Inspect the finished truck at the factory and make up a punch list of anything needing correction or refinishing.

Have the truck delivered to the dealer for clean-up and minor adjustments prior to the unit being delivered to your fire station.

Once the demonstration period has been completed, usually 1-2 days for pumpers, only then should the dealer or manufacturer be handed a check. The unit now belongs to the fire department, so do not forget to advise your insurance carrier that the new truck has arrived and the invoice paid.

Most of the above information has already been identified in previous columns, but fire departments continue to lose money to truck builders who are either out of business, in some cases they don’t even know it, or companies that really don’t have sufficient capital, knowledge or people to compete with the industry leaders.

Financial Problems

New Lexington Fire Equipment, Rockwood, Pa., closed its doors last year and left several departments with nothing to show for the money they put up front for their trucks.

Elite Fire Apparatus, Tilleda, Wis., appears to be having some difficulties, and Montgomery County, Md., received only one of the 37 trucks from its order. We can only hope the county had a valid performance bond to protect the original  bid price from being raised when another builder completes the contract.

Anyone who has been following the apparatus industry will know about the documented financial problems at American LaFrance and E-ONE. Both companies have been plagued with financial losses, late deliveries, personnel and dealer defections and general management turmoil.

At ALF, they have a new computer system, a new president and they just moved into a brand-new beautiful facility in South Carolina. Any one of these can cause horrendous disruptions. ALF management recently sent a letter to their vendors, some of which have not been paid in six months, saying that payments have been postponed because of poor cash flow. That is not a good sign.

Five Presidents In 10 Years

With E-ONE, it is another new president (Peter Guile) and more spin doctoring from Federal Signal corporate, saying that they will fix the problem of reduced sales and increased losses ($9-12 million in 2007).

With five presidents since 1998, E-ONE’s worker bees really haven’t had an opportunity to explain to the boss what a fire truck is, who buys them and why. Until the new management teams take the time to listen to and understand their customers and dealers, there is not likely to be a change for the better.

And that’s not all. It has been well documented that at least two other medium-size apparatus builders have been offered for sale. With the devalued dollar, offshore companies are looking more favorably to opening manufacturing facilities here and producing rigs for both the U.S. and world markets.

Interesting Times Ahead

The next few years should be very interesting for the builders and buyers of apparatus. In the meantime, it is “buyers beware.”

For your own protection, check out the financial status of the company you are dealing with and – I can’t stress it enough – make sure you have the appropriate bonds.

Fortunately, the majority of the rest of the builders are doing just fine and introducing new products each year. The PUC from Pierce, with some interesting features, was unveiled at the FDIC show in April.

At the same show, Rosenbauer had its new “Roadrunner” 68-foot water tower with a very unique front bumper pump control for pre-connects as well as a rear, top-mounted panel. This is a “must see” truck and one of the company’s “Tech Truck 07” fleet.

Smeal and its aerial partner, Ferrara, continue to offer a well-built, versatile and broad line of aerial devices.

FDSOA Symposium

Kovatch has announced a series of program rescue pumpers with 29-inch-deep compartments. Other companies such as Sutphen and Darley have been solidifying their expanded customer bases.

For those of you who would like to learn more about the right way to spec a new truck, the Fire Department Safety Officers Association (FDSOA) 20th Annual Apparatus Specification & Vehicle Maintenance Symposium will be held in Orlando, Fla., in January. It’s an intense three-day seminar that brings together the very best from the manufacturers and the fire service. The program looks like it will be the best one ever. I guarantee if you attend, it will be worth your time.

Check out the Web site at www.fdsoa.org or call 508-881-3114.

Editor’s Note: Bob Barraclough is editorial director of Fire Apparatus and has been involved with the fire service for more than 40 years as a firefighter and industry consultant. He is a member of the National Fire Protection Association (NFPA) 1901 Fire Apparatus Standards Committee, an organizer of the annual Apparatus Specification Symposium of the Fire Department Safety Officers Association and a long-time member of the Fire Apparatus Manufacturers’ Association.