The Future of American LaFrance

ALF's history indicates it can weather this storm

American LaFrance (ALF) has been building fire apparatus since its founding in 1832. It has also had a tumultuous past, having survived several ownership changes. Through it all, the company has always managed to overcome diversity and come out on top.

There’s no reason to believe this time around will be any different. As we all know by now, this week, ALF declared a voluntary bankruptcy, which will help the company reorganize and return to manufacturing in 90 days. The voluntary filing of a Chapter 11 bankruptcy prevents the company from being forced into an involuntary one, in which ALF would have no input into its future and would be unable to protect its customers, dealers and employees.

There’s no doubt that bankruptcy, even voluntary, is not a positive sign. But if ALF can solve some of the problems that led to its financial woes, it may be able to emerge successfully.

ALF was recently purchased by Patriarch Partners LLC, and moved into a state-of-the-art factory and headquarters building in Summerville, S.C. That’s where the trouble started. Obsolete inventory was not declared as such, and the transition between owners created significant IT problems when ALF converted to a new inventory tracking system. All of that left ALF with approximately $100 million in debt.
Highlights of the bankruptcy include:

• ALF plans some streamlining by closing the Sanford, Fla., plant, ending the manufacture of ambulances. Also, it will move its parts distribution plant to the main Summerville plant and the two LTI plants in Pennsylvania will be combined. This will all be performed to reduce manufacturing time while improving quality.
• Most of the furloughed employees will be brought back to work in stages by March 10, 2008. There will be a total of 800 employees company-wide.
• ALF will concentrate on its current backlog of apparatus orders when manufacturing resumes. However, the company states it will not rush apparatus through production, and that quality is its main concern. A March 10 manufacturing restart is planned.
• All existing warranties are being honored, and the problem of aftermarket parts is being addressed.

ALF has always been a favorite to many people in the fire service, myself included. I cut my fire service teeth on 900 Series, Century Series, Century 2000 and finally the Eagle. My department operated all of these apparatus in one form or another, so I learned how to drive, pump and operate the aerial devices on all of these products.

I’m hoping that the company comes back stronger than ever, with high-quality products, and I wish them good luck in taking on all of the problems they’ve encountered.

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