How hedge fund fire trucks are affecting Maine towns

Calais has been seeking federal funds for a new ladder truck for years. It hasn’t worked out.

At 41 years old, the fire department’s current truck has been in service for about two decades longer than industry standards recommend. The department can no longer find parts for it but can’t replace it with town money alone. New ones run more than $1 million, and the budget for the entire city is roughly $6.5 million per year.

“We don’t want to burden the taxpayers with that, because I don’t think they can [afford] it, to be honest with you,” Fire Chief William Lee said.

Fire engine prices have skyrocketed since the pandemic, rising much faster than inflation. Maine towns struggling under heavy tax burdens are responding by holding onto aging trucks for longer and struggling to plan for new purchases that often take several years to process.

The price spike is the culmination of industry consolidation, ever-changing safety and emissions standards and President Donald Trump’s tariffs. One Maine city has even joined a national legal effort alleging a price-fixing scheme among a trio of dominant manufacturers.

Fire engines are typically made custom after departments outline their specific needs. In Maine, trucks need to fit in old stations and maneuver narrow, winding streets. The Hancock County town of Surry has put in an order for one on a standard chassis to save time.

The order cannot be placed until this summer. Fire Chief Bryan McLellan said he’s hoping to wait about 18 months for delivery. If material costs rise dramatically during that time, the final price could go up before the truck gets to the coastal town.

Surry’s effort was boosted by a $492,000 earmark sponsored by U.S. Rep. Jared Golden, a Democrat from Maine’s 2nd District, in this year’s round of federal funding bills. Even with that help and local matching funds, it’s not enough for a top-of-the-line engine.

Other towns are looking for 2027 earmarks from Maine’s delegation, which is helmed by Sen. Susan Collins, a Republican and top appropriator. Golden made a similar request for Orland. The nearby town of Penobscot is trying for Golden’s help. China, in Kennebec County, made a similar request to independent Sen. Angus King.

Many communities in Maine and across the country have voiced outrage over industry consolidation. Fire truck producers have been bought up repeatedly by private equity firms in recent years. Up to 80% of the U.S. fire truck supply now comes from three companies: Oshkosh Corp., REV Group, and Rosenbauer America.

Augusta sued them last year, alleging in a 66-page filing that they colluded to fix prices while raking in billions in profit. Executives have denied engaging in anti-competitive business practices. The federal lawsuit in Wisconsin, where two of the manufacturers are based, is still active.

Augusta’s complaint tells the story of market consolidation, including the Great Recession-era private equity takeover of distressed manufacturers that had once competed and were turned into REV Group. The city said it is operating two trucks that are more than 30 years old.

City officials declined to comment on the pending litigation, and the city’s fire chief could not be reached for comment.

Back in Surry, the town is aiming to keep its new truck compliant with the latest industry standards, which are frequently updated to include advanced safety features. The truck’s manufacturer will have to add many new safety tools, like seatbelt sensors. Those requirements add cost to replacing the department’s old truck, which lacks shoulder straps, anti-lock brakes, and airbags.

“When we’re having volunteers put their time and their lives on the line to protect their communities, it’s really important that we’re giving them a vehicle to operate that’s safe for them,” McClellan said.

The newest truck in Calais was made in 2005. It is also reaching the end of the industry standard 15 to 25 year service life and will soon need to be replaced. The city is planning to apply once again for fire truck funding through a federal program that has not come through in the past three years and is now stalled due to the partial government shutdown.

As costs continue to rise and backlog continues to plague truck manufacturers, it’s unlikely Calais will be able to replace a truck anytime soon.

“Communities just can only sustain so much, and these prices are just getting out of reach,” Lee said.

Daniel O’Connor is a Report for America corps member who covers rural government as part of the partnership between the Bangor Daily News and The Maine Monitor, with additional support from BDN and Monitor readers.