Older fire trucks will require updates and state funding will pick up, spurring modest growth.
New York, NY (PRWEB) August 08, 2014
Over the five years to 2014, revenue for the Fire Truck Manufacturing industry is expected to trend lower. During the economic downturn, local and state governments struggled to balance their budgets and federal assistance plunged. Furthermore, funding for the Assistance to Firefighters Grant (AFG) program, which serves to assist fire departments in acquiring new vehicles and outfitting departments with safety equipment, is anticipated to plummet over the period, stifling fire departments ability to purchase new fire trucks. As a result of these trends, Fire Truck Manufacturing industry revenue is expected to fall at an annualized rate of 3.1% to $275.2 million over the five-year period, pulled down by an estimated 0.4% decrease in 2014.
According to IBISWorld Industry Analyst Brandon Ruiz, “Beyond local and state funding, the 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.” Funding for the program has declined during the past five years, with appropriations estimated to fall at an average annual rate of 27.9% to $92.1 million in 2014, down from $503.3 million in 2009. Rural, suburban and urban agencies have had to compete for limited funding, particularly as federal budgets have tightened.
“Over the next five years, the industry will grow along with an improving economy, rising tax revenue and greater local and state funding for fire departments,” says Ruiz. As funding increases, spending on new fire trucks and engines will stimulate demand at the manufacturing level. 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 2019.
For more information, visit IBISWorld’s Fire Truck Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Fire Truck Manufacturing 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.