Big Changes

2008 was a year of major changes & announcements in the apparatus industry

While two major players, American LaFrance and E-One, announced significant initiatives, two others, Darley and Rosenbauer announced noteworthy expansions.

American LaFrance
American LaFrance announced that, effective July 24, 2008, it has emerged successfully from bankruptcy. The company also announced a significant reorganization that moves its fire apparatus line of business from the new plant it just occupied in Summerville, S.C., to two existing facilities. It will use the former LTI plant in Ephrata, Pa., and the former RD Murray Plant in Hamburg, N.Y., to build its fire apparatus lines. The Summerville plant will continue to build its commercial cab and chassis models, including chassis manufactured for fire, refuse and construction markets (street sweepers, refuse haulers and concrete pumpers).

Also in the works is a plan for ALF’s parent company, Patriarch Partners, to purchase North Charleston-based Protected Vehicles, which just filed for Chapter 11 bankruptcy. It’s unknown if these two ventures will be joined in the Summerville plant.

According to CEO Lynn Tilton, American LaFrance management is currently completing documentation for exciting new business ventures. These ventures were instrumental in the decision to expand facilities and processes for anticipated ramp up of new lines of production. The company also plans to significantly broaden its focus beyond domestic borders into the global market.

I guess we’ll just have to see exactly what that means. Based on the past 8 months, I’m sure it won’t take long for another announcement. It seems Tilton is a fast-mover in the business world, as she took ALF out of bankruptcy in record time.

E-One
Another big announcement from last year: the sale of E-One, which was rumored for quite some time.

The management team of E-One and American Industrial Partners (AIP), a middle market equity firm, announced that the purchase of E-One from Federal Signal was completed on Aug. 5, 2008. As a result of this acquisition, E-One will become a privately held company backed by AIP. The E-One management team will invest alongside AIP as a significant shareholder in the company.

A board of directors has been appointed with two notable people on board: Gene Goodson, the former CEO of Oshkosh Truck, and Donn Viola, a former COO of Mack Trucks.

AIP makes control equity investments in mid-sized industrial companies that benefit from the firm’s systematic approach to implementing strategic and operational improvements. Wow, that was a mouthful. What this really means: E-One will have the finances and tools to once again become a separate, flourishing company.

Rosenbauer America
Rosenbauer America has completed construction of its new 24,000-square-foot expansion, including new offices, fabrication areas and an apparatus showroom. The company has greatly expanded in apparatus sales and new innovations for the industry over the past several years.

Darley
W.S. Darley celebrated a milestone in 2008—its 100th anniversary. The company also purchased a new headquarters in Tasca, Ill. The new facility has more than 40,000 square feet of offices and manufacturing space, nearly double the space of its former headquarters.

In Sum
I’m really happy that all of these companies that have so much history in the fire apparatus industry will grow and be prosperous. Many insiders believed both ALF and E-One would fail and be gone before year’s end. I have a great deal of faith in both of the parent companies not to let that happen. It will take some time, but both should be back at their operational glory once again.

As for the industry, we can only see if time and the economy will have an effect on purchases and continued growth in 2009 and beyond.

Bob Vaccaro has more than 30 years of fire-service experience. He is a former chief of the Deer Park (N.Y.) Fire Department. Vaccaro has also worked for the Insurance Services Office, The New York Fire Patrol and several major commercial insurance companies as a senior loss-control consultant.