Heavy Losses: Uncovering the World of Construction Equipment Theft

Heavy equipment theft is a significant problem in the United States. Showing up to a job site only to find some of your equipment missing is a nightmare --  financial losses, waiting for insurance to process, delayed projects, downtime, lost productivity, and more. 

And while we know this doesn’t tie in directly with final drive motors, we know it is a concern for many of our customers. So, in this Shop Talk Blog post, we’re talking about equipment theft trends, contributing factors, and their impact. Then, we’ll look at the challenges to recovery, followed by preventative strategies. At the end, there are some additional resources to help you protect your equipment and ensure a fast recovery if stolen.

Introduction

In recent years, the United States has seen a significant rise in heavy equipment theft. This includes machinery like backhoes, bulldozers, and excavators, essential for construction, agriculture, and other industrial sectors. The impact of such thefts is not only financial but also hampers productivity and can delay critical infrastructure projects.

The Current State of Heavy Equipment Theft

Heavy equipment theft is a lucrative business for criminals due to the high value of the machinery and the ease of selling stolen items on the black market. Often, these machines are transported overseas, making recovery difficult. The anonymity of large construction sites and the lack of standardized identification methods for equipment make theft easier.

Statistics and Trends for Equipment Theft

According to the National Equipment Register (NER) and the National Insurance Crime Bureau (NICB), heavy equipment theft is steadily increasing. The NER reports that over $1 billion is lost annually due to equipment theft, with less than 25% of stolen equipment recovered. Due to their ease of transport, the most commonly stolen items are smaller pieces of equipment like generators and welders.

• Regional Hotspots: The states with the highest rates of equipment theft are Texas, Florida, North Carolina, California, Georgia, and Oklahoma -- accounting for 40% of all heavy equipment thefts
• Time of Theft: Most thefts occur over weekends or extended holidays when construction sites are unattended.
• Type of Equipment: Small, easily transportable equipment is most at risk, but larger machinery is also targeted. The most popular machines targeted are garden tractors/mowers, backhoes, skid steers, and tractors.
• Brands:  Brands like John Deere, Kubota, and Caterpillar are commonly targeted.
  
  

Heavy equipment theft in the United States by equipment type, from the 2014 Heavy Equipment Theft Report initially published by NICB.org. Source

Factors Contributing to Heavy Equipment Theft

Experts have identified three main contributors to heavy equipment theft:

• Ease of access to equipment and lack of security measures.
• The high value of equipment and parts on the black market.
• Inadequate record-keeping and tracking of equipment.

Heavy equipment theft is primarily driven by the need for a national database of serial numbers, making it far too easy to resell stolen equipment. The high value of these items, often unattended and unguarded for extended periods, makes them attractive targets. Additionally, the crime is low-risk with minimal consequences for perpetrators, fostering an environment where equipment theft thrives​​. 

Impact of Theft

The ramifications of heavy equipment theft are extensive. Beyond the immediate financial loss, which often severely impacts smaller contractors, there are indirect costs like rental fees for replacement equipment, increased insurance premiums, and project delays. This affects the businesses involved and can have a broader economic impact.

Recovery Challenges

The recovery rate for stolen equipment and tools is around 20%, with over $1 billion lost annually nationwide. According to a 1981 FBI Law Enforcement Bulletin discussion of Heavy Equipment Theft,  “The law enforcement problem is compounded by the unfamiliarity of most officers with construction equipment or terminology, the lack of requirements regarding registration or title for offroad equipment, and the absence of permanent standard identification numbers affixed to construction and farm equipment.”

Preventive Measures and Solutions

Preventing heavy equipment theft requires a multi-faceted approach. Some effective strategies include:

• Use of Technology: GPS tracking devices and immobilization systems can deter theft and aid recovery.
• Proper Site Management: Ensuring construction sites are well-lit, fenced, and guarded, especially during off-hours.
• Equipment Identification: Registering equipment with the NER and keeping a detailed inventory can help recovery.
• Employee Vigilance: Training staff to be vigilant and report any suspicious activities.

Here are some tips from ConstructionBriefing.com to help prevent the theft of your equipment (Source):

• Keep an eye out for vehicles "casing" your property.
• Have someone check on your equipment during the holidays. 
• Ensure that all alarms and lighting are functioning correctly -- frequent false alarms may indicate that criminals are attempting to test your responsiveness!
• Test cameras during both the day and night to ensure that they can capture license plates, faces, and vehicles.
• Give neighboring businesses your emergency contact information and ask them to contact the authorities if they see a suspected theft in progress.
• Make frequent inventories of your equipment.
• Examine fences and gates regularly (thieves may partially cut fence posts or stack materials near a wall to prepare for a theft).
• Move lightweight or high-value equipment away from the property's boundaries and into a secure location.
• Don’t leave anything on a trailer
• Secure trailers so thieves cannot use them to steal your equipment.
• Get your employees on board and encourage them to help secure equipment during work hours rather than expecting them to do it independently at the end of the day.

Also, remember to register your equipment with your national database to help increase recovery rates. Always record the serial and identification numbers of new equipment and inform the insurance company of the number.

Conclusion

Heavy equipment theft is a growing concern in the United States, with significant financial and operational impacts. While law enforcement and industry bodies are working to combat this issue, adopting preventive measures by equipment owners is crucial. Increasing awareness, investing in security technologies, and proper site management are vital to reducing the incidence of these thefts.

Additional Resources

• National Equipment Register
• How To Prevent And Recover Stolen Heavy Equipment 
• Uncovering The Scope Of Construction Theft In The US - Mobile Video Guard
• Construction Site Theft by the Numbers - Deep Sentinel
• How To Prevent And Recover Stolen Heavy Equipment
• 2016 Equipment Theft Report
• Exclusive: Thieves targeting heavy construction equipment - CBS Los Angeles
• Battling Equipment Theft in Construction: Harnessing Technology to Safeguard Assets - Kraus-Anderson Insurance