Hello and Happy 2022 from Kodiak Emergency Vehicles! 
 

Important Update

We are getting calls from customers nearly every day asking for updates on vehicles  in production and for estimated delivery dates on new purchases. Our answer to almost all of these questions is that lead times for new ambulances, remounts, and fire apparatus are getting longer and less predictable, and that prices are going up as well.

It is very important to understand what is going on in the emergency vehicle industry so that you can budget and plan for vehicle purchases that will take, in most cases, much longer to receive than in the past. Your new vehicle may arrive in a budget year different from what you planned, and your plan for your replacing aging fleet vehicles may need to be adjusted based on current lead times.
 

Chassis Shortage + Record New Orders

If you drive past a Ford or a Chevy dealership, you can see first-hand the effect of the global automotive chassis shortage. Compound this problem in the emergency vehicles industry is that new orders are now starting to come in at a record pace as well. Reduced supply combined with increased demand is driving lead times significantly higher.

Why are orders increasing? Because customers are now starting to order vehicles that they may not need for two or three years, which is driving a viscous cycle of manufacturers not being able to produce fast enough, causing longer lead times, causing even more orders to come in. We do not see this cycle ending anytime soon.
 

Hard to Increase Build Rate

Ambulance and fire apparatus manufacturers are structured to build a certain number of vehicles per month/year. They have a highly trained workforce and specialized tooling; and even when/if they receive the chassis and other needed components, they cannot immediately increase their production rate–and with various waves of coronavirus outbreaks, it has been difficult even to keep their current workforce fully operational.

While receiving one last microchip will allow an F-150 to be delivered immediately to the end user, a completed chassis is only part of what an ambulance manufacturer needs. Because of this, it will take the emergency vehicle industry much longer than the retail automotive industry to work its way out of this supply crisis.
 

Prices Are Also Rising

Along with growing lead times, we are also seeing large and frequent increases in parts and materials prices, and we expect to see more throughout 2022. Some increases are announced ahead of time, some are effective immediately, and we are even hearing of some being applied retroactively to items already on order.
 

Planning is Key

We understand that, by conveying this information, we may add to the viscous cycle driving backlogs higher; but we want you to be aware of the situation so you can appropriately budget and plan to keep your fleet fully operational.

We hope that this information helps you. Please contact us if we can help answer questions or help you plan your vehicle needs under the current circumstances.