Fighting Equipment Theft
According to the National Equipment Register Inc.’s Theft Report, the estimated total value of construction equipment stolen annually ranges between $300 million and $1 billion. Learn about techniques to help reverse this costly trend.
Heavy Equipment Theft Prevention
Despite the best efforts of owners and operators of heavy equipment, almost 500 pieces of heavy
equipment are stolen in the United States each week. Only 10 to 15 percent of stolen equipment
is ever recovered. Although the cost of equipment theft is not precisely known, the
National Insurance Crime Bureau estimates that close to $1 billion a year is
lost nationwide due to the theft of heavy construction equipment.
A survey by Equipment World magazine revealed that almost 70% of the respondents had experienced equipment theft. Equipment theft accounts for more than 50% of all heavy equipment losses, much higher than collision (10%) and vandalism (6%).
[Source: National Equipment Register 2006 Equipment Theft Report]
Why Is Equipment Stolen?
The answer is quite simple. The reward for the thief far outweighs the risk.
Heavy equipment has little physical security (mechanical or site), and it is
valuable and easy to resell. The low rate of recovery is also a clear indication
of the low risk for the thief. Even if an item is recovered, an arrest may not be
made. When an arrest is made, a conviction is not guaranteed. Even when a conviction
occurs, the penalty is usually light. Thieves are also attracted to heavy equipment
for the following reasons:
- Registration of off-road vehicles and equipment is not required.
- Equipment is identified by product identification numbers, not the standards used for cars and trucks.
- A high demand for heavy equipment.
What Types of Equipment Are Stolen?
Three types of equipment account for 79% of the losses: skid-steers (33%),
backhoe/loaders (29%) and loaders (17%). Generators and air compressors are becoming popular
targets for thieves as well.
Rented equipment is stolen in larger numbers than owned equipment for the following reasons:
- Operators and company owners are less likely to make efforts to enhance physical security.
- Retailers often do not allow renters to add physical security measures to the equipment.
- Rental equipment is often in transit or left unattended while on a trailer.
- Thieves use false identities to rent and steal equipment.
[Source: National Equipment Register 2006 Equipment Theft Report]
What Can You Do To Prevent Theft?
To help reduce the frequency of heavy equipment theft, a comprehensive theft prevention program should be implemented.
The components of a program should include, but are not limited to the following recommendations:
- Record the make, model, serial number and/or VIN numbers for each piece of equipment. This documentation should be stored in a secure location away from the jobsite.
- Register all heavy equipment through local law enforcement efforts(Operating Identification), the National Equipment Register or the National Crime Information Center.
- Fence all job sites with a minimum six-foot chain link fence and secure all gates with heavy chains or locks.
- Secure all mobile equipment through installation of mechanical means such as tire locks, drive control locks, trailer hitch locks, hydraulic bypasses, fuel cutoffs, hydraulic arm locks, ignition bypasses, etc.
- Store all portable tools in lockable gang boxes that are secured to a structure or other sturdy object.
- Track all heavy equipment using electronic GPS systems.
For large jobsites that contain large numbers of high value equipment and tools, consideration should be given to hiring a security guard service to randomly or routinely patrol the site during all nonworking hours.
