Local fire departments blame private equity for rising equipment costs

When the Pointe Fire burned through the hills of Santa Clarita on July 15th, it dangerously encroached on homes, a school bus yard and a synagogue, Congregation Beth Shalom.

Flames from the blaze burned right up to the playground of the synagogue's preschool, Rabbi Jay Siegel recalled.

"It was pretty touch and go," he said. "It was quite frightening."

Congregation Beth Shalom is a few miles from Fire Station 150, which houses a fire engine with more than 233,000 miles on its odometer.  

According to Los Angeles County Fire Captain Aaron Katon, industry standards dictate that a fire engine is supposed to be on the frontline for 15 years, then 10 years in a reserve fleet. 

Engine 150, however, is 20 years old and still on the frontline. 

"Much of our fleet, the largest portion, our rigs that date back to 2006, 2007," Katon said.

CBS California Investigates has followed this problem since the Palisades Fire in January 2025. A CBS LA drone flew over an LA City Fire maintenance yard, also known as the boneyard, where dozens of fire engines and trucks were parked for repairs. 

It's not just an LA issue. Katon says departments everywhere face the same problem.

Fullerton is also sounding the alarm. Fire Chief Adam Loeser says the prices of life-saving equipment have skyrocketed. 

He showed CBS California Investigates a 2022 fire truck the department purchased for $1.5 million. To purchase it brand new today, it would cost about $2.3 to 2.5 million — more than a 50% jump.

In Pasadena, Fire Chief Chad Augustine says every department around the country is feeling the pain. 

"We're getting priced out of the market," Augustine said. "And the other impact is the safety to our community." 

On top of the rising costs, he says they were recently quoted a build time of 45 months.

That's why Fullerton, the County of Los Angeles and the State of California have filed federal antitrust lawsuits against several manufacturers of fire apparatus, including those owned by the REV Group, for what the plaintiffs call a "consolidation scheme." 

"Private equity has played a pivotal role in this destruction of competition," the complaint says.

On its website, the REV Group lists about a dozen fire apparatus and emergency vehicle brands under its umbrella. CBS California Investigates reached out to the company for comment, but a spokesperson declined a request for an interview.

During a Senate hearing last fall, the company's president, Mike Virnig, told lawmakers steps are being taken to bring down the build times to about a year. 

"We've continued to hire hundreds of, if not thousands, of skilled laborers, which is one of the biggest problems we have," Virnig said. "We've invested millions of dollars in every factory."

A number of Fire Chiefs told CBS California Investigates that high demand created supply shortages and increased federal spending during the COVID-19 pandemic.

During the Senate hearing, Dan Meyer, a Vice President of Pierce Manufacturing, was asked about allegations of collusion among the makers of fire apparatus. 

"There is a lawsuit put against Pierce Manufacturing," he said. "We believe it's without merit."

In August, a joint motion was filed on behalf of the REV Group, Oshkosh, its subsidiary Pierce and Rosenbauer to dismiss the antitrust class action. A spokesperson for Pierce and Oshkosh says the move underscores "the lack of factual support for these claims."

In May, a security camera captured LA City Fire Engine 274 in a rollover crash.  One issue being considered in the investigation into the incident is whether age was a factor. The department told CBS California Investigates that the 19-year-old apparatus wasn't equipped with airbags or rollover protection. Two firefighters suffered injuries.

Chief Loeser said modern apparatus are equipped with airbags and other safety features. New backup cameras are especially helpful when fire crews are backing out of tight canyons, firefighters claim. 

"[Backup cameras and airbags are] required on all personal vehicles," Loeser said. "So when we have our firefighters responding to an emergency and they're going with lights and sirens, they need to be just as protected."

At the La Verne Fire Department, an engine was delivered in 2024, three years after it was ordered. 

"We get it on the road, and within several weeks the diesel motor had effectively completely, catastrophically blown up," said Chris Nigg, who was fire chief at the time. "It had to be rebuilt, torn down entirely, and then it took upwards of six plus months to get that done as well."

He said he understands apparatus manufacturers need to turn a profit. But their prices haven't plateaued - like other industries, Nigg said. 

Nigg is currently the Fire Chief in Fountain Valley, which is part of a class action against the apparatus makers.

In Santa Clarita, Engine 150 is still on the frontline because the 20-year apparatus is newer than the one it replaced earlier this year.

That one had been in service since 1998. It's an example of why fire departments say planning is tough, because apparatus availability will vary on a daily basis because of emergency and routine maintenance.

Rabbi Siegel says fire crews successfully protected lives and property during the Pointe Fire, but he believes an effective line of defense should be well-rounded.

"It might be a metaphor, but this is a fine line between safety and destruction," Siegel said. "Just one inch, right, one inch, one gust of wind, and it's a different story."

In July, a group of lawmakers filed a bipartisan resolution to direct the Federal Trade Commission to investigate consolidation by private equity firms and large companies in the industry.  The LA City Fire Department declined a request for an interview because the city has filed its own lawsuit.