By Chris Mc Loone
As 2018 comes to a close, it is hard to believe that just 10 years ago the United States was entering a recession that would severely impact the fire market.
Although much of the fire industry has rebounded during the past 10 years, there hasn’t been a return to the same numbers in terms of units sold as pre 2008. That being said, it’s easy to see that things are not overly “bad,” however.
One obvious indicator is the trade show circuit. Even with continued consolidation, companies are not using this as an excuse to spend less money. A short walk through FDIC International 2018 was all it took to see that the fire service vendors are expanding their booth space vs. contracting it. I think I saw more fire trucks in 2018 than I did in my previous 12 FDICs. Additionally, firefighters nationwide are identifying problems that need solutions and are developing products to provide them. Not only are they designing and developing the products, but they are starting companies to produce and sell them. And, these companies are lining the aisles at FDIC International with their booths. But, trade shows are not the only indicator.
During 2018, we received countless press releases from apparatus manufacturers announcing orders or deliveries—often multiple unit orders and deliveries. There were several large orders for equipment like self-contained breathing apparatus (SCBA). And, apparatus and equipment manufacturers continued to bring new products to market as well as new versions of previous products. Companies were hiring—always a good sign.
We also received news on numerous companies expanding their facilities. I have always felt that a good indicator of a company’s health is whether or not it is reinvesting in itself, and 2018 proved that the health of the industry as a whole is good.
That is not to say that we should not be looking at the future, and indeed there are indicators that the fire service and its suppliers must prepare for different contingencies. For example, one area that has received attention not only in the fire service but in manufacturing in general is a shortage of trade labor. Not as many young adults are choosing to enter a trade anymore. And, it’s hard to ignore talk of tariffs on steel and aluminum and other products that could impact pricing for the goods we need to do our jobs. So, as we end 2018, where are we, and how do things look for 2019?
TEN YEARS LATER
Prior to 2008, fire apparatus manufacturing was at its peak. When the recession hit, municipalities had to readjust their capital expenditure plans, but there is typically a lag between when a recession starts and when fire service suppliers are impacted.
Comparing 2008 with 2018, Paul Darley, chairman, chief executive officer, and president of W.S. Darley & Co., says, “It is encouraging to see the uptick in the market following the catastrophic drop in new trucks following 2008. Although the market has not returned to prerecession numbers, it is still a healthy and respectable market nonetheless. I would consider it a new normal.”
Jim Kirvida, owner and president of CustomFIRE, says, “2018—of course I’m looking at it from a manufacturer’s standpoint—has been a busy year with many more opportunities and many more successes than were present in 2012 through 2016.” One difference Kirvi