As personal property proves harder for thieves to steal and sell, equipment theft has become an attractive and lucrative alternative. By most estimates, equipment theft accounts for approximately 50 percent of all heavy equipment losses and costs about $1 billion per year.
Although physical security, such as locks and alarms, plays a critical role in prevention, recent technological advancements offer equipment owners a more complete arsenal to aid in theft prevention, recovery and deterrence, which can, in turn, help lower theft-related costs.
Theft Prevention
Unless a machine is in a secure location or has a custom-built equipment lock, usually only a common key is required to start any machine built by a single manufacturer—a factor that can further complicate security measures.
The development of "smart" ignition systems promises to bring some relief in the ongoing battle against theft. These systems incorporate a smart key or keypad that can be programmed to allow multiple employees to start a single machine, while effectively eliminating access by non-authorized personnel. As an optional feature on many manufacturer equipment models, the technology can provide senior management with a viable, long-term way to prevent theft.
Equipment Recovery
One of the most troubling statistics in the industry is that only 10 percent to 15 percent of stolen equipment is recovered. By employing tactics such as unique identifiers, information sharing and electronic tracking devices, owners can significantly increase the likelihood of recovery.
Using unique identifiers can neutralize a thief's attempts to disguise and eventually sell a stolen piece of equipment. For example, a person is more likely to remember seeing a backhoe if it is painted pink as opposed to yellow. A less extreme alternative to bright paint is to use multiple, highly visible company decals. The more unique the equipment looks, the greater the chance of detection—a scenario most thieves aim to avoid.
Sharing information with law enforcement is a critical element of any recovery strategy. Traditionally, an owner or operator gives a machine's serial number to law enforcement only when filing a police report after a theft occurred. But, if an equipment owner registers all machine serial numbers with a national database, law enforcement officials have a better chance of quickly and correctly identifying ownership—even before the theft has been discovered. This reduces the costs associated with downtime or equipment rentals, as well as increases the chance of recovery.
The increasing availability of electronic tracking devices in the marketplace is another possible weapon against equipment theft. The two main tracking technologies in use today are radio frequency (RF) transmitters and global positioning systems (GPS), which employ satellite and cellular communications to transmit equipment locations.
Although an RF system tends to have a stronger signal than GPS, the technology does not have national coverage and only can be activated once a theft is reported to law enforcement officials.
Although a GPS may have a slightly weaker signal and cost more than an RF system, it can inform an owner immediately of any unauthorized movement and can be used for productivity-enhancing remote asset management. Depending on an equipment owner’s specific budget and needs, both technologies offer a significant boost to equipment recovery efforts.
Deterrence is perhaps the most effective and least expensive technique to combat theft; however, the desired outcome cannot be achieved without some type of preventive or recovery mechanism. If a piece of equipment contains a decal indicating the serial number has been registered with a national database, the increased risk of recovery and arrest may cause thieves to think twice about stealing the machine.
Although different types of equipment and environments may require different solutions, all successful strategies share common elements, including the consideration of how to best aid law enforcement, the potential direct and indirect costs associated with theft, and the involvement and support of senior management.
The growing problem of equipment theft can’t be eliminated overnight. However, by implementing security strategies that incorporate prevention, recovery and deterrence, equipment owners and operators can help minimize the impact such thievery has on their bottom lines.
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Friday, September 3, 2010