Issue link: https://read.dmtmag.com/i/330408
Theft 34 | ZZZFHGPDJFRP | Construction Equipment Distribution | June 2014 Every state experiences theft, but most of it occurs in coastal states or states bordering Mexico. That partly explains why most recovered equipment is found in the same state in which it was taken; much of the rest has quickly crossed an international border. Still other unrecov- ered machines are sold online or in auctions and end up clear across the country. What type of equipment is most coveted by crooks? "The kind generally stolen has more than one use on a jobsite, things that can be used across multiple applica- tions and are easily transported," said Shepherd. "A skid steer on a trailer behind a pickup – we see those thefts all day long. Not tower cranes, for instance, which are not easily sold in a secondary market." The secondary market is a huge one. "The buying pool for these machines is anyone looking for used equipment," Shepherd added. "Many buyers are buying stolen equip- ment unaware, rather than knowingly purchasing the equipment from an unscrupulous seller. People buying at auctions or online don't know what they are getting." Shepherd doubts that few legitimate contractors buy stolen equipment, though some may close their eyes and pick up a skid-steer loader or wheel loader at a price that seems too good to be true. Usually, thieves sell machines more or less at market value to avoid such suspicion. Contractors sometimes help thieves rip them off, says the NER executive. "I think the biggest mistake contractors make is to leave equipment exposed in unprotected areas for multiple days on end. People looking for equipment to steal see that the machines haven't been moved in days and recognize these are low-hanging fruit. That's easily the biggest mistake I see." A lackadaisical approach to security might be encour- aged by the increasing use of rented equipment. Literally not having ownership of the machinery may uncon- sciously lessen a contractor's sense of responsibility. Rental companies' annual revenue from construction and industrial equipment is expected to reach $31 billion by 2017, according to the American Rental Association. Needless to say, rental companies are among LoJack's biggest customers. What To Do Current responses to the criminal loss of heavy equipment are not working, unless an 80 percent clean-getaway rate for thieves is considered success. Perhaps, as AEM's Cervero suggests, manufacturers will become more antitheft conscious in their engineering as the Tier-4 regulatory juggernaut eases away. Shepherd says he believes equipment builders "by and large do what they can. When new technology comes along, they adopt and offer it, though usually not as a standard feature. So a lot of security is optional – a touchpad or better lock on a door or more robust key system. These generally are options." OEMs could begin to standardize security features. Nearly three quarters of contractors have experienced equipment theft, according to Cygnus Business Media Research and Shepherd says contractors could do a better job of implementing risk-management programs. "Some do, some don't. Some have experienced equipment thefts and felt the pain and take extra precautions to prevent it from happening again. Some have never had an incident, so, after 10 years or so, they diminish protection." Using hidden fuel cutoffs and wheel and hydraulic locks, and parking machines in defensive clusters – contractors know the security drills that can benefit them. Shepherd adds that insurance companies take the threat seriously. Some companies are insistent that contractors reduce theft risk, sometimes even canceling a policy when a complacent contractor is victimized. After all, experience shows that having a machine stolen is several times more likely than, say, having it catch fire. In fact, 45-50 percent of all machinery losses are from theft, according to the NER/NICB report. Loose Lips Something as simple as a poster in contractors' offices could help, something reminiscent of the World War II slogan, "Loose Lips Sink Ships." Shepherd talks of the common scenario where an equipment operator talks too freely in a social setting. "It can be a simple comment that $2 million in assets are sitting at a jobsite that the employer hasn't visited in two weeks." While listing equipment with NER can't prevent theft, it unquestionably assists law enforcement – when the information is entered correctly. Tennessee Highway Patrol investigator Troy Human says bad information causes ´6:,3('µFRQWLQXHGIURPSDJH FRQWLQXHGRQSDJH A thief in the night meets with little resistence when machines are left in isolated areas for long stretches of time – dealers with machines on rent are wise to keep a geo-eye on their units.