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DOTmed Industry Sector Report: Ambulance Sales & Service

by Sean Ruck, Contributing Editor | January 21, 2009

There is also a market for used ambulances that are not remounted. These ambulances sell for a fraction of the cost of buying new, but because they are not remounted, they may not carry a new chassis warranty. Many distributors will also offer a refurbishing option, which includes a new paint job and upholstery with or without the remount.

"A used ambulance that is not remounted could cost anywhere from $15,000 to $45,000," said Tom Lehrman of LifeStar Rescue Inc. in Van Wert, Ohio. "We buy some used ambulances and remount them, but a lot of times we use them as our inventory for loaner vehicles. It takes about three months for us to do a remount, so we give customers a used ambulance as a back-up, so that they have something to use while their vehicle is being remounted."
Used ambulances may also be an attractive option for volunteer services, start-up companies, or companies who want to expand their ambulance fleet, Lehrman said.

The Year Ahead

Though many EMS services are still operating on last year's budgets, some say the market could feel the pinch of this year's economic downturn in 2009.
"This year, there is a stronger market for new ambulances, but going forward with this economy, I believe that the remount business will triple," said Eric Vogl of Southeastern Specialty Vehicles. "Most counties are already cutting back, and with the cost savings that remounting provides, it's going to be cheaper for them to remount and use the money for other things."

Although buyers may be facing economic constraints in 2009, some may still feel pressured to purchase new units next year before a new round of EPA emissions standards for diesel engines goes into effect in 2010.

"Stricter environmental standards will mean a more expensive unit in 2010, so many companies will want to buy up in 2009," said Bob Parks, Product Manager at McCoy Miller, an ambulance manufacturer in Elkhart, Indiana. "But when the results of the economy start hitting the tax base next year, I don't know how it's going to go. It should be pretty tricky."

Also, changes to federal and state reimbursement policies could affect private EMS transport services that operate on Medicare and Medicaid reimbursements.

Going Global

With such a competitive domestic market, some manufacturers are beginning to make a splash on the worldwide ambulance market.

Parks said McCoy Miller is currently in contract with Aramco, a Saudi Arabian oil company, for 63 units.

"Our little industry - it's going worldwide," he said. "As the dollar devalued, our products became a better value for people across the world. And if the economies of the world increase, we will have more of a market, I think."