Chris Mc Loone
CM: How is the fire industry doing right now? Can we say that we've finally turned the corner?
PD: According to FAMA statistics, new orders for fire apparatus have seen an increase recently. The first quarter of 2013 showed that new orders were up about 25 percent when compared to the first quarters of 2011 and 2012. New orders were up five percent compared to the last quarter of 2012. If this trend were to continue, annualized sales would be up 40 percent over 2012. This is a big "IF," as I don't think the trend will continue. The numbers are skewed because of some large, nonmunicipal orders in the first quarter.
Although I can't say the market has finally turned the corner, this is some positive news. In 2012, the United States municipal market was still down more than 40 percent when compared to its height in 2008 when the market peaked at more than 5,000 trucks. The market was flat compared to 2011. Historically, there have been more large municipal orders, and these have slowed over the past five years. Based on this, we are starting to see some pent-up demand, particularly with larger cities. This is tempered by a reduction in AFG grant funding and a lower percentage of awards being made for fire apparatus.
Look, no one wants to see a rebound in apparatus and equipment sales more than the manufacturers, but it's too early to tell if the market is back. Statistics from the League of Cities Annual Report show that municipalities are far from being out of the financial crisis. Fire departments' budgets are no longer sacred cows when it comes to municipal spending cuts. Once the dust settles in a few years, I predict we'll probably see the market settle into a "new normal" market of 4,250 to 4,500 new fire apparatus per year.
CM: What is the biggest issue in the fire service, and how is Darley helping to address it?
PD: I don't know of a person in the industry who wouldn't quickly point to the budgets crisis as the biggest issue for career departments. This is at a time when most departments are being asked to do more with less. Fire departments really need to rethink their approach and reinvent themselves.
Darley is keenly focused on this industry need. On the pump side, we have been working closely with fire apparatus manufacturers during the past few years to help them introduce unique and competitively priced multipurpose vehicles by offering them "Pump System Solutions" that address the true needs of today's fire service. These pump systems allow the manufacturer to offer one vehicle that can serve a variety of department needs, rather than just having to devote a specialized vehicle for rescue, pumping, or hazmat.
We are focusing on lower-cost equipment such as competitively priced, high-quality Darley branded bunker gear, nozzles, adapters, and so on. We also have a variety of financing options available.
For volunteer departments, recruitment and training are pressing long-term issues. We are designing our products to be easy to operate while being high-tech, which appeals to today's new volunteer recruits.
CM: To you, what is the most important product Darley produces?
PD: Under our diversification strategy, we've cast a wide net and launched a lot of innovative new products over the past few years-everything from pumps to equipment, polyurethane bodies, compressed air foam systems (CAFS), water purification, and drones. At our core, we're still a pump manufacturer. I would say that they're all important, but I grew up on the pump side of our business and continue to migrate mostly to this area where I know the industry players well and understand market needs. It comes very natural to me personally.
We've recently introduced a new 3,500-gallon-per-minute (gpm) pump that has been highly successful. It is the highest flow pump