Lighting Up: Fire Truck Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Fire Truck Manufacturing industry was unable to rescue itself from the grips of the economic downturn. Despite some growth over 2011, sales of new fire trucks and engines are expected to continue tumbling by 0.8% in 2012 as federal, state and local government funding continues to tighten. Over the next five years, the industry will grow along with an improving economy, rising tax revenue and greater local and state funding for US fire departments. Furthermore, the fleet of fire trucks and engines is aging. Departments used older vehicles instead of purchasing new ones during the past five years, so demand for upgrades will pick up in the five years to 2017. For this reason, industry research firm IBISWorld has added a report on the Fire Truck Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Renewed local funding for new fire trucks and engines will drive modest growth

The Fire Truck Manufacturing industry was unable to rescue itself from the grips of the economic downturn. In 2009, industry revenue fell 15.6%, and it continued falling in 2010 as local and state governments struggled to balance their budgets and federal Assistance to Firefighters Grant (AFG) appropriations plunged. Despite some growth over 2011, sales of new fire trucks and engines are expected to continue tumbling by 0.8% in 2012 as federal, state and local government funding continues to tighten. According to industry analyst Tony Danova, “industry revenue is expected to decrease at an average annual rate of 5.0% to $3.9 billion over the five years to 2012.”

Beyond local and state funding, the Fire Truck Manufacturing industry depends on federal funding for homeland security, particularly for the AFG program, which helps firefighters and their respective departments obtain vehicles, equipment, protective gear, training and other resources needed to properly protect the public from fire hazards. Danova says, “funding for the program has declined during the past five years, with appropriations estimated to fall at an average annual rate of 9.2% to $337.5 million in 2012.” Rural, suburban and urban agencies have had to compete for limited funding, particularly as federal budgets have tightened. At its peak, appropriations for the AFG program reached $746.0 million in 2004. In 2010 (most recent data available), about $2.6 billion in grants were requested, but only 15.3% ($390.0 million) was granted as appropriations fell 31.0% that year. In 2012, appropriations are anticipated to fall 16.7% from 2011, further hurting demand for fire trucks and engines.

The industry's leading manufacturers, Oshkosh and Rosenbauer, are large-scale firms that compete on a global market. The remaining firms typically cater to local or regional markets. Also, many of the industry's largest companies produce a diversified lineup of products, not binding themselves solely to fire trucks or fire engines. Over the next five years, the industry will grow along with an improving economy, rising tax revenue and greater local and state funding for US fire departments. As funding increases, investment in new fire trucks and engines will bode well for manufacturers. Furthermore, the fleet of fire trucks and engines is aging. Departments used older vehicles instead of purchasing new ones during the past five years, so demand for upgrades will pick up in the five years to 2017.

For more information visit IBISWorld’s Fire Truck Manufacturing in the US industry page

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This industry manufactures fire trucks and fire engines. These vehicles assist in fighting fires by transporting firefighters and essential equipment, such as pumps, ladders and safety gear, to the scene of fires.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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