Note: This report originally appeared in the December 2008 edition of DOTmed Business News. A list of registered users that provide sales & service can be found at the end.

A look into the ambulance manufacturing industry reveals a small, stable and competitive market that has seen little major change in the past quarter-century.

"The market is stagnant, meaning there is little decline and little growth," said Kim Elick, general manager of Braun Industries, an ambulance manufacturer in Van Wert, Ohio. "There is a significant barrier to entry for new manufacturers who want to come in. They can't capture new customers. It's just not happening."

The ambulance manufacturing industry consists of roughly 28 manufacturers, with an estimated yearly production of 5,500 to 6,000 new units. Ambulance manufacturers purchase chassis - vehicle frames that include the engine and running gear - from vehicle manufacturers such as Ford or GM, convert them into ambulances and sell them to dealers and distributors or directly to the customer.




Historically, Ford has been the predominant chassis supplier in the market, but in the past few years, Dodge and GM have introduced several ambulance chassis options and are edging in on the market share.

"All of these new chassis are suitable for ambulance usage and have become hugely popular in the last few years," said Mark Van Arnam, CEO of American Emergency Vehicles. "What this means for us is that we have to inventory a huge amount of chassis, and we have a lot of affordable options for our customers now."

There are essentially two large classes of ambulances, each offering different price points and intended for different uses. The larger, box-shaped, modular ambulances known as Type 1 and Type 3 will cost anywhere from $100,000 to $200,000 new, Van Arnam said. The smaller van ambulances known as Type 2 will start in the $55,000 to $75,000 range.

"Most models are custom built for the end customer, but it's the equipment that makes it expensive, and that varies for each customer," he said.

Buying New vs. Remounting

Customers have the choice of buying new or remounting existing ambulances, and both options come with their own list of pros and cons. But the bottom line to all customers is reliability and cost savings over the life of the vehicle.

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