Protecting Construction Equipment from Theft

By Courtney DeMilio

In 2014, more than $7.7 million worth of construction equipment was stolen and recovered. Theft can have a significant impact on the livelihood of construction professionals and can result in more than $13.1 million in costs for the owners if that equipment is never recovered.   Unfortunately, many equipment owners may be unaware of the high risk of theft associated with owning and operating construction equipment.

The location of a jobsite can greatly impact the likelihood of theft and, unlike traditional auto theft, construction theft is not confined to city streets and urban areas. The top three states for construction theft in 2014 were California, Texas and Florida, respectively, likely due to a close proximity to major shipping ports and the high volume of ongoing construction projects throughout the year. To avoid the significant cost, not only to replace the equipment but also for loss of work days or potentially the job, there are some simple tips for protecting equipment from entering the hands of thieves.

• Be aware of the time of year: Theft commonly occurs when a high volume of construction projects are taking place all at once. According to the 2014 Equipment Theft Report from the National Insurance Crime Bureau, July, June and August are top months for reporting theft of equipment, respectively. With better weather and longer days, equipment owners may have more equipment on each worksite and perhaps equipment spread over many sites as well. Concurrently, theft between November and March also occurs at a high rate at a time when more equipment is idle, as construction activity is lower in colder months. Idle equipment and low to no staffing makes that equipment a favorite target of thieves. Although theft can and does happen year round, it is beneficial to be extra cautious and aware of times of the year that equipment is at a greater risk.
• Know which models are popular targets: Backhoe loaders, skip loaders and wheel loaders made up 35 percent of all equipment that was stolen and recovered in 2014. New models, with their higher resale value, are also a target for thieves, which is why 54 percent of equipment stolen and recovered in 2014 was less than five years old. In addition, 24 percent of items stolen and recovered were Bobcat brand while John Deere equipment made up an added 20 percent of stolen equipment for 2014. Making note of this information can inform how owners might store or monitor specific pieces and brands of equipment to make them less likely targets for an opportunistic thief.
• Install tracking devices: Although construction business owners may diligently protect their equipment, theft is always a possibility. A simple way to alert owners when unauthorized use is occurring is to employ a telematics solution. Many solutions will feature geo-fencing technology to detect when equipment is moved and alert the owner to any unapproved activity. Every layer of protection counts, so in addition to telematics, theft recovery devices can help police locate stolen equipment quickly without a thief ever knowing the police are on their way.
• Monitor construction sites on days off: Many owners leave equipment behind at jobsites even on off days, to avoid the hassle of transporting the equipment back and forth. Weekends and holidays continue to be an opportune time for thieves to capitalize on, specifically as the equipment theft is oftentimes not detected or reported until days later when workers return to the jobsite. With greater monitoring of a jobsite — whether using techniques like video monitoring systems or hiring a private security guard — comes the ability to report theft sooner and possibly alert police to suspicious activity around the site that may have been witnessed.

Construction equipment will remain a target for thieves as it continues to be difficult to secure and provide a high resale value. Even the theft of one item can greatly impact an entire jobsite or business with loss in job productivity, the inability to complete a job, a diminished professional reputation — all while the owner is spending a substantial amount of time and money to replace the equipment. Protecting equipment is a high priority for all owners and by simply taking extra precautions such as paying attention to the time of year, as well as the types of equipment being sought after by thieves, valuable company time and resources can be preserved.

¹2014 LoJack proprietary theft and recovery data with value of and replacement value of assets determined from information obtained from EquipmentWatch.com, MachineryTrader.com and/or National Automobile Dealers Association.
²2014 LoJack Corporation Study on Construction Equipment Theft.
³2014 LoJack Corporation Study on Construction Equipment Theft.

Courtney DeMilio is national vice president of commercial and fleet for LoJack Corporation.