If our economy had been growing at a rate of 20 percent a year for the last decade or so, most of us would be luxuriating in hog heaven right now. That’s apparently where a lot of heavy equipment thieves reside, because that’s been the growth rate for heavy equipment thefts since 1996, according to the Insurance Services Office. ISO reports theft to account for more than half of all insurance claims for heavy equipment–more than the combined totals from fire damage, collisions, vandalism, natural disasters and whatever else.

growth rate for heavy equipment thefts since 1996, according to the Insurance Services Office. ISO reports theft to account for more than half of all insurance claims for heavy equipment–more than the combined totals from fire damage, collisions, vandalism, natural disasters and whatever else.

According to LoJack Corp.’s 2007 Construction Equipment Theft Study, the most commonly stolen pieces of equipment are:

1. Skid steers

2. Backhoe loaders/skip loaders/wheel loaders/track loaders

3. Generators/air compressors/welders

4. Light utility/work trucks and trailers

5. Forklifts/scissor lifts

6. Dump trucks

7. Light towers

8. Mini excavators

LoJack, a company that practically invented the stolen vehicle recovery market using radio frequency tracking integrated with law enforcement agencies throughout the United States, attributes much of the problem to professional theft rings that target construction equipment and are familiar with construction operations. The rewards far outweigh the risks in their “business.” The odds of getting caught are lower than for most other types of crime. When someone does get caught, prosecutors tend to assign it a low priority, and even if convicted, penalties tend to be light. Add it all up and construction equipment theft has become an estimated $1 billion industry.

Value and Mobility

Value and mobility are the key factors determining risk for construction equipment theft. The higher the value and easier it is to transport, the more likely thieves are to target it. Often there is little machinery protection or jobsite security to deter them.

Whereas stolen autos have a recovery rate of around 62 percent, the best estimates are that only around 10 percent of pilfered heavy equipment gets recovered. There are various reasons for this; most important seems to be the time lapse between theft and discovery. People tend to use their autos every day, so usually no more than a few hours go by before they discover one missing. On the other hand, construction equipment stolen on a Friday night typically won’t get discovered until Monday morning. Statistics show that most thefts occur on weekends and holidays for precisely that reason.

Sometimes equipment sits idle for lengthy periods on a jobsite, and their loss might not get noticed for days or weeks, especially when it belongs to owners with large fleets and multi-site operations. The more time passes between theft and recovery, the easier it is for thieves to transport and sell the equipment outside of the vicinity.

Adding to the difficulty in recovering lost equipment is the absence of any central database of the kind that exists for motor vehicles, whose true owners can be readily identified by law enforcement officers. There is no mandated registration for off-road equipment, and no standard Product Identification Number (PIN) system as there is for autos.

Another factor is the ease with which used construction equipment can be sold. Stolen equipment often does not have the same kind of title documents as vehicles, and can be sold without much risk to buyers who don’t ask many questions. Sad to say, the construction industry is riddled with unscrupulous contractors who are anxious to cut a good deal on used equipment, either knowing or not wanting to know if the property is “hot.”

Rentals at Risk