There probably isn’t a contractor in this country that at some point hasn’t been a victim of jobsite theft. In 2014, there were 11,625 heavy-equipment thefts reported to law enforcement, up 1.2% from 2013, according to the latest data from the National Insurance Crime Bureau in a report coproduced by the National Crime Information Center.
Total construction equipment theft now stands at around $1 billion annually. And only 23% of the heavy equipment stolen last year was recovered, the NICB report stated.
A survey conducted last year by Cygnus Business Media Research on behalf of LoJack, which makes theft-detection and –prevention devices, found that 83% of construction equipment owners polled had experienced equipment theft.
Courtney DeMilio, LoJack’s National Vice President of Commercial and Fleet, points out that theft can have a greater, negative impact on a business. “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,” she says.
The Canton, Mass.-based LoJack recently released its annual “Construction Equipment Theft and Recovery in the United States” report, based on its tracking, from January through December 2014, of theft reports in 28 states where equipment theft was reported and where construction equipment outfitted with a LoJack device led police to recover the stolen assets.
Graphics courtesy LoJack
From that sample, the report identifies backhoe loaders, skip loaders and wheel loaders as the most popular equipment targeted by thieves. “There is little visual differentiation from one backhoe to another, and they all share a common key,” the report explains. “Therefore, they are prime targets for thieves based on the ease of theft and how hard they are to track once one is stolen.”
Skid steers, generators/air compressors/welders and portable light towers; and excavators are also most susceptible to robbery.
The report notes that thieves typically go after newer and brand-name equipment. In 2014, 54% of the tracked equipment stolen was less than five years old. And 65% of the thefts were of products made by top manufacturers such as Bobcat (24% of the equipment stolen), John Deere (20%), Caterpiller and Case (tied at 8% each), Takeuchi (6%) and Magnum (5%).
The report gives several reasons why construction equipment and tools continue to be vulnerable to thieves. For one thing, titling and registration of equipment aren’t mandated, so it’s often hard to report theft and harder for law enforcement to track what’s stolen. There’s also no standardized identification numbers on this stuff, like the Vehicle Identification Numbers on cars and trucks.
In addition, jobsite security is not always as tight as it could be, and the sites themselves can be remote. And because equipment and tools are constantly being transferred between sites, owners can be lax in their inventory accounting.
“The thief isn’t always somebody unrelated to the job, as often he or she can be a member of the company that owns the equipment,” DeMilio tells BD+C. But inside jobs aside, the industry has a “natural exposure” to theft because jobsites are on predictable schedules, leaving opportunities open for thieves will often scope out sites looking for weak spots.
Not surprisingly, theft is more prevalent in states where there’s more construction activity, with California and Texas having the highest occurrences. But unlike cars, which when stolen often end up in other states, 95% of the stolen construction equipment and tools that are recovered are found in the same state they were stolen in.
DeMilio says contractors and owners need to keep their equipment off the street in secured areas patrolled by guards. They should also be in close contact with police “so they are aware of the area and can be monitoring during off hours.” She recommends that owners adopt technology that includes cameras, electronic access pads, GPS geo-fencing, and covert RF recover devices.
LoJack, naturally, pitches the efficacy of installing detection and telematic devices on construction equipment so that owners are alerted to unauthorized use during off hours, and police have a better shot at retrieving stolen goods. It points out that 56% of stolen equipment with a LoJack system was recovered within 24 hours after being reported, and 5% was recovered within an hour.
Related Stories
Giants 400 | Aug 7, 2015
RECONSTRUCTION AEC GIANTS: Restorations breathe new life into valuable older buildings
AEC Giants discuss opportunities and complications associated with renovation, restoration, and adaptive reuse construction work.
Giants 400 | Aug 6, 2015
BIM GIANTS: Robotic reality capture, gaming systems, virtual reality—AEC Giants continue tech frenzy
Given their size, AEC Giants possess the resources and scale to research and test the bevy of software and hardware solutions on the market. Some have created internal innovation labs and fabrication shops to tinker with emerging technologies and create custom software tools. Others have formed R&D teams to test tech tools on the job site.
Giants 400 | Aug 6, 2015
GIANTS 300 REPORT: Top 75 Healthcare Construction Firms
Turner, McCarthy, and Skanska top Building Design+Construction's 2015 ranking of the largest healthcare contractors and construction management firms in the U.S.
Giants 400 | Aug 6, 2015
HEALTHCARE AEC GIANTS: Hospital and medical office construction facing a slow but steady recovery
Construction of hospitals and medical offices is expected to shake off its lethargy in 2015 and recover modestly over the next several years, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 6, 2015
GIANTS 300 REPORT: Top 75 Construction Management Firms
Jacobs, AECOM, and Hill International head Building Design+Construction's 2015 ranking of the largest construction management and project management firms in the United States.
Giants 400 | Aug 6, 2015
GIANTS 300 REPORT: Top 100 Contractors
Turner Construction and Whiting-Turner Contracting top Building Design+Construction's 2015 ranking of the largest contractors in the United States.
Giants 400 | Aug 5, 2015
CONSTRUCTION GIANTS: Economists hedge their bets on prospects for nonresidential construction
Leading economists expect spending for nonresidential construction to rise in 2015 by somewhere in the 6.4–7.7% range, and remain strong in 2016, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 85 Office Sector Construction Firms
Turner, Structure Tone, and Gilbane top BD+C's ranking of the nation's largest office sector contractors and construction management firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Contractors | Jul 31, 2015
Nonresidential fixed investment falls in second quarter
In the first half of 2015, both the broader economy and nonresidential investment lost the momentum they had coming into the year, said Associated Builders and Contractors Chief Economist Anirban Basu.