The new economics of fire apparatus purchasing

There is a storm brewing in the purchase of fire apparatus.

Apparatus prices have been increasing far faster than general inflation and department budgets over the past few years. Department budgets are under strain and, at best, hold steady. Most budgets include cuts.

These two trends are about to collide. How will it affect your department?

As these two trends continue, they charge toward an unsustainable future.

For your department, there are only 3 options:

1. Convince your funding sources (taxpayers, governments, councils) to pay your department more to buy new apparatus, or
2. Cut other department costs enough to afford a higher price apparatus, or
3. Change the economic use of your apparatus.

The 3rd option means changing your replacement cycle. That may mean for your department that you replace every 12 years instead of 10 years. Or combine the purpose of 2 apparatus into 1 apparatus.

Let's think through the implications of this a little more. If you need a truck to last longer or do more things, your design and spec process must incorporate more durability requirements. Ironically, that may mean even higher costs.

Summary

There is a balancing act to buying and affording apparatus in the current environment. Purchasing an apparatus requires more intentional thinking as the apparatus gets called to work longer or work harder.

Stay safe!

John R. Hill
Apparatus Budgeting Consultant
ENVIZION Financial
www.envizionfire.com