The recently devastating California wildfires are being felt not just by local communities but also by developers, investors, and construction teams working on major projects across the state.
How Has California Responded to a Hotter Climate?
In response to a hotter, drier climate, California has significantly ramped up its wildfire prevention and response efforts through investments and advanced technology. Governor Newsom’s administration has allocated $4 billion toward fire response and prevention, expanded CAL FIRE’s workforce by 47% since 2018, and built the world’s largest aerial firefighting fleet.
In an era where wildfires and extreme weather increasingly impact development, developers need Hubexo’s tools to mitigate risks and maximize returns. With California investing billions in wildfire response and prevention—enhancing fire detection, real-time mapping, and forest resilience—developers must integrate data-driven insights into their site selection and project planning.
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The Role of Private Equity
If California and the rest of the nation hope to create truly fire-adaptive communities, they must ensure that the tools needed to protect communities remain accessible, affordable, and independent of monopolies.
The Los Angeles Fire Department (LAFD) faced unprecedented delays in replacing its aging fleet, with delivery times for new fire trucks going from under a year to over four-and-a-half years. At the height of devastating wildfires, over 100 of LAFD’s 183 fire trucks were sidelined due to maintenance delays, leaving the city critically under-resourced. These delays are primarily the result of a pandemic-era supply chain disruption, but in small part it’s also the inability of private equity firms to speed alignment with the fire apparatus industry and community needs.
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The fire truck manufacturing sector has undergone a radical transformation in the past decade. American Industrial Partners (AIP), through its acquisition of multiple major manufacturers—including E-ONE, KME, Ferrara, and Spartan—has consolidated much of the industry under a single corporate entity: the REV Group. Alongside a handful of remaining competitors like Oshkosh and Rosenbauer, these firms now control over two-thirds of annual fire truck sales in the U.S.
This has led to:
- Presumptive scarcity creating shortages that drive up costs
- With limited suppliers and increased wait times, fire departments are forced to pay premium prices for critical equipment
- Strained municipal budgets from having to procure fire trucks, leaving fewer resources for firefighter recruitment, salaries, and other essential needs
The wildfire crisis underscores a fundamental contradiction: the societal need for a robust emergency response infrastructure can sometimes be at odds with financial profitability interests. Fire departments depend on timely, reliable vehicle procurement to safeguard communities, yet the market forces shaping this industry may inadvertently prioritize revenue over efficiency.
Beyond PE and the immediate impact on specific projects, the wildfires have brought several underlying issues into sharper focus:
- Developers are recognizing the importance of prioritizing wildfire risk assessments in their planning.
- The destruction has driven up premiums for insuring projects in high-risk zones, affecting the financial viability of some developments
Damaged projects are igniting conversations about integrating fire-resistant materials, defensible space planning, and other resilient design principles. Rebuilding efforts offer opportunities to rethink how communities and industries respond to wildfire risks.
Kiwi Newton underscores that rebuilding is not just about restoring lost structures but about adopting innovative, fire-resilient design principles that can better withstand future wildfire threats.
Wildfires devastate communities not just through direct flame contact but through secondary effects such as ember intrusion, radiant heat exposure, and inadequate defensible space. Historically, many homes and commercial buildings have been designed without sufficient consideration for wildfire resilience.
Materials like untreated wood siding, asphalt shingles, and open eaves make structures highly vulnerable to ignition. Similarly, improper land use planning—such as dense housing developments with minimal buffer zones—exacerbates the rapid spread of wildfires.
Related: 5 Most Expensive Planned Data Centers Under Construction [2025].
Implementing Fire-Resilient Construction
One of the most critical steps in wildfire mitigation is the use of fire-resistant materials and construction techniques.
- Fire-Resistant Building Materials:
- Precast Concrete
- Class A Roofing
- Noncombustible Siding
- Structural Design Considerations:
- Enclosed Eaves & Vents
- Tempered Glass Windows
- Defensible Space Planning
The Role of Industries in Wildfire Mitigation
Wildfire resilience is not just a concern for homeowners—it directly impacts multiple industries, from construction and real estate to insurance and infrastructure.
Builders and architects must incorporate fire-resistant designs into new developments to meet stricter fire codes while ensuring long-term sustainability.
Insurance companies are reevaluating coverage strategies based on fire-prone locations, emphasizing the need for proactive fire mitigation to lower premiums and risk exposure.
Power companies and municipalities need to invest in underground power lines, fire-resistant utility poles, and emergency response systems to prevent wildfires from being ignited by electrical failures.
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Homes That Survived Wildfires
Investing in fire-resistant construction and smarter urban planning provides long-term financial and environmental benefits. Fire-hardened buildings are not only safer but also reduce insurance costs, minimize economic losses, and ensure quicker recovery after disasters. Additionally, by integrating resilient landscaping and controlled burns, communities can help restore natural fire cycles, preventing catastrophic wildfires while maintaining ecological balance.
Hubexo provides critical data, and market trends, helping developers choose safer locations, avoid costly setbacks, and align with state resilience efforts. By leveraging these tools, developers can protect their investments, secure approvals faster, and ensure long-term profitability in a rapidly evolving climate landscape.
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Credits
American Industrial Partners. (n.d.). https://americanindustrial.com/
California, S. of. (2025, January 16). Here’s how California has increased wildfire response and forest management in the face of a hotter, drier climate. Governor of California. https://www.gov.ca.gov/2025/01/13/california-forest-management-hotter-drier-climate/#:~:text=Key%20goals%20from%20the%20plan,Tracking%20wildfire%20prevention.
IBISWorld. (n.d.). Fire truck manufacturing in the US – market research report (2014-2029). IBISWorld Industry Reports. https://www.ibisworld.com/united-states/industry/fire-truck-manufacturing/5645/
MSN. (n.d.). https://www.msn.com/en-us/news/us/dozens-of-fire-trucks-waiting-for-repair-while-fires-ravage-la/ar-BB1rrbXT
