CE UNBOUND from the publishers of Compact Equipment

In the movies, thieves always have elaborate plans for their next big score. Like a stream of dominos cascading across an empty room, every piece of the puzzle has to fit perfectly for the next one to fall into place.

Of course, real life is usually a lot less interesting. Most thefts are impulsive, improvised acts. A convenient store gets held up by a guy disguised in a ski mask, someone’s pocket gets picked on the subway when they’re not looking or a car’s side window is smashed in with a crowbar, where a thief will likely find the keys hidden inside the armrest or tucked under the sun visor.

Unfortunately for anyone who makes their living in construction, equipment is often an even easier target. That’s because when business is good, your equipment is hardly ever locked up inside the secure confines of an equipment yard. It’s on the job, doing what you shelled out thousands of dollars for it to do. On every new jobsite, a new set of variables is introduced — new people andnew surroundings, new weaknesses in security. Not surprisingly, more than 60 percent of all stolen equipment is taken from an empty jobsite after hours.

Construction equipment is highly vulnerable to theft for a number of reasons,” explains Kathy Kelleher, national manager for the commercial division of LoJack Corp., a leader in tracking and recovery solutions for stolen construction equipment, cars and motorcycles. But primarily, it’s a result of the equipment being left at unsecured sites over the weekend or during the evening, where it becomes an easy target for thieves. Site managers often don’t discover that a theft even occurred until they return to work on Monday morning.”

According to the National Insurance Crime Bureau (NICB), an organization dedicated to preventing, detecting and defeating insurance fraud and vehicle theft, stolen construction equipment costs owners and insurers an estimated $1 billion every year. A 2005 construction equipment theft study showed that 72 percent of equipment owners have had equipment stolen in the past five years.

And the Winners Are...
Top Construction Equipment Recoveries for 2006

LoJack recently unveiled its annual wrap up of last year’s top recoveries involving stolen construction equipment that were equipped with the LoJack System. Here are the company’s top equipment recoveries for 2006.

“Biggest Theft Ring Bust”
This major theft ring — which was discovered when Los Angeles PD/ California Highway Police tracked down a LoJack-equipped Bobcat skid steer — has it all: the recovery of more than $750,000 in construction equipment; stolen equipment that was being shipped overseas to Russia and Germany; and the use of identity theft to rent and steal equipment. Thus far, multiple suspects have been identified and the investigation is ongoing.

“Best Use of Aircraft in the Discovery of Theft Ring”
A Houston PD helicopter picked up the signal from a stolen LoJack-equipped 2000 John Deere 310E backhoe loader. Police quickly tracked down the backhoe, uncovering a large theft ring involving another stolen backhoe, flatbed trailer, John Deere dozer, Kioti tractor, Big Tex trailer and more — all valued at more than $400,000.

“Best Rental Scam Bust Recovery”
A Colorado-based equipment rental company was “taken” by a scam artist, who was eventually arrested thanks to the LoJack System. The thief rented a skid steer, attempted to sell it to another local business and eventually tried to trade it for a $9,000 Harley-Davidson motorcycle. The equipment was tracked and recovered by police who identified the thief as a serial scam artist and was wanted as a fugitive in multiple states.

“Not the Sharpest Tool in the Shed”
When a construction company in Florida discovered its Schwing concrete pump was stolen, it didn’t have far to go to report the theft since the equipment was actually stolen from a construction site at a police department. The pump was recovered and the thief was arrested for grand theft.

"Equipment thieves typically have good knowledge of equipment operation and the weaknesses in security,” explains Glen Sider, operations manager for the National Equipment Register (NER), an organization established in 2001 to increase the recovery rate of stolen farm and construction equipment. “In some cases, these are criminals who learn about equipment or who pay those in the business for help and information. Once they steal and sell one machine and find out how easy it is, they continue. As a result, arrests commonly lead to the recovery of multiple machines.”

In most instances, organized crime rings are to blame, taking advantage of the typically high-reward and low-risk endeavors. Some culprits have been known to impersonate dealers or rental personnel, armed with convincing responses for any inquisitive bystanders. They might tell them they are collecting a machine for “routine maintenance,” then drive right through the gates with no one ever the wiser — at least not until it’s too late. Owners with larger fleets or multi-site operations may not discover the theft for days, weeks or, in some cases, months.

“Thefts typically occur on Friday or Saturday night, because it gives the thief a couple days head start,” says Tony Nicoletti, national sales manager for DPL America, makers of the Titan equipment monitoring system. “Equipment is loaded and removed from the jobsite. In fenced scenarios, the thieves jump the fence, drive the equipment through it and load it in the street. Sometimes equipment is moved off a jobsite in broad daylight under the guise of a transport crew moving it to another job.”

The most common targets for theft today are skid steer loaders, tractors, backhoe loaders and compact utility loaders. Key factors include value, mobility and circulation. For example, it is estimated that skid steer loaders accounted for more than 30 percent of new construction equipment sold in the United States in the last five years — consequently, it’s also the most commonly stolen.

According to NER, only 10 to 15 percent of stolen equipment is ever recovered. Machines are typically sold directly into the used market, where equipment can often be sold with relative impunity. As a result, not only is there little risk of detection for the thief, but the equipment also can be sold at (or pretty close) to market price.

“Buyers for this equipment are often in place prior to the theft, so it’s moved and delivered very quickly,” Nicoletti explains. “Many are aware they are buying equipment that is significantly reduced in price, but choose not to ask questions. Most stolen equipment is moved out of the country, while the rest end up on the auction block or chopped for parts.”

While stolen equipment does often end up outside of the United States, a large percentage of recoveries are also made in close proximity to the theft, sometimes in the same state or just one to two away. But wherever the machines end up, the reason for the relatively low recovery rate remains the same — a lack of information.

When equipment is stolen, one of the first courses of action is to run the product identification number (PIN) through the law enforcement’s computer system. Since off-road equipment currently has no standardized system for PINs or serial numbers, machines cannot be effectively tracked back to the owners.

A standard format for earthmoving equipment has been agreed on, but will likely take several years to be implemented.

“The lack of standardization makes construction equipment even more vulnerable to thieves,” notes Kelleher. “It is relatively easy for thieves to change the identity of the equipment by removing or switching a PIN, plus there is nothing unique on a piece of equipment, such as a license plate, as there is with vehicles. So police may just be looking for a 'yellow bulldozer.'”

Having the right information can make the difference, so victims should have as much info as possible when they call the police to file a stolen equipment report. This includes manufacturer, model number, the serial number or PIN, color, date of purchase and any identifying marks that might be on the machine. You should then provide the same information to your insurance company when you call to file a claim, which should take place within 24 hours of learning about the theft.

Another obstacle in equipment recovery is that there is currently no mandated registration system for off-road equipment, so it can be difficult for the true owner of the vehicle to be determined. One solution to this challenge is a service offered by NER called HELPtech (Heavy Equipment Loss Prevention Technology), which is used in conjunction with other equipment security products and services.

With HELPtech, equipment is registered by serial number in a national database, allowing police anywhere in the United States to identify the owner by calling a 24-hour hotline. Of the $11 million in stolen equipment NER has recovered, HELPtech has been responsible for more than $9 million.

“In the event a registered machine is discovered to be missing, a HELPtech client can notify NER by phone or online to mark the equipment as stolen,” Sider says. “A theft alert will be sent to police and industry specialists in the area of the theft and the equipment details will be included in any searches of the NER database, including calls to NER’s 24-hour, national tip line.”

There are a number of theft deterrents available on the market today, including wheel and ignition locks, fuel cutoffs and battery disconnect switches. Simply the presence of these sorts of deterrents — or even decals that indicate the presence of a recovery system — can be effective. However, most experts agree that professional thieves are often able to outsmart these deterrents and disengage protective devices.

“If a thief wants a piece of equipment and is determined enough, he will usually get it,” notes Sider. “But if equipment owners put up as many obstacles as possible, they can increase the difficulty and the time it takes to commit that theft. As a result, this will increase the risk of being caught in the act and limit the thief’s options when they attempt to sell the stolen machine.”

Despite the inherent challenges in keeping your equipment safe, installation of tracking devices has proven to be one of the most effective obstacles for thieves. These devices use one of two types of tracking technology — ground-based communications such as radio frequency (RF) signals or a combination of global positioning systems (GPS) and cell phone networks. Strength of signal and provider coverage is the biggest variable, considering that the equipment might be out of range or stored inside or under some kind of cover.

There are a variety of GPS devices available on the market today, including DPL America’s Titan equipment monitoring system, which combines three layers of defense into one system — proactive prevention, real-time notification and GPS technology. GPS tracking is an attractive option for owners because it empowers them with real-time capabilities to track down a piece of equipment when it goes missing.

“What the Titan offers is what we call a curfew feature. Most owners have set hours of operation, so if a machine is being used at an unauthorized time, the owner gets a phone call,” Nicoletti explains. “Anti-tamper features are also incorporated, so that if the unit is removed, cut or compromised, the machine will lock up. Usually that’s enough to get the thief to move on to something else.”

Another approach involves police-based tracking and recovery, which leverages radio frequency (RF) technology. The system was pioneered by LoJack 20 years ago to recover stolen cars and light trucks, then entered the construction equipment market in 2000. Kelleher says the RF technology is ideal for recovery because it is fully operational even if the equipment is hidden in a steel container, in a garage or under dense foliage.

“The systems are hidden covertly on the equipment, so thieves typically cannot find or disengage the device,” Kelleher explains. “They are also directly integrated with law enforcement. LoJack’s police tracking computers are installed in police vehicles and aircraft and used to track down a stolen item. Recovery typically occurs within 24 hours after the equipment was reported stolen — and often within just a couple of hours.”

LoJack introduced the next generation of the product in 2004, incorporating a number of advanced features designed specifically for heavy construction equipment. It features an internal antenna, transmitter/receiver and backup battery housed in a self-contained, one-piece unit that increases its mounting location options and provides easier concealment — making it even less likely for thieves to discover its presence.

While the technology can be highly effective in recovering stolen equipment, there are several more layers for protecting your equipment. Those who are effective in protecting their equipment and businesses from theft make it a priority to take the right measures, keep the right records and use the right products — from theft deterrents and immobilizing devices to recovery systems.

“The investment in recovery systems pays off in the long-run as companies save not only the costs of replacing equipment, but also the high price tag of business downtime,” says Kelleher. “The companies that are most effective at theft protection have upper management who are very aware of the problem and the high vulnerability of equipment; they know how professional thieves work. They keep good records and focus on physical security, with measures such as fencing in equipment and asking for more police patrols of jobsites.”

These comprehensive programs also involve making theft protection a priority throughout the organization — from the foreman all the way to the backhoe operator. All employees need to be educated about how thieves work and steps that must be taken to protect valuable equipment and prevent downtime. Eventually, proper precautions will become just another part of an everyday routine — and that will make every machine in your fleet just a little bit safer.

“The first step in theft prevention is to understand that every piece of equipment is at risk of theft almost anywhere,” says Nicoletti. “That’s probably the most common misconception about equipment theft — if you haven’t had anything stolen, then you don’t need protection. Theft is on the rise, so past history doesn’t necessarily guarantee future success.

A proactive approach, with several layers of protection, gives companies the best chance to stop equipment theft.