By Jessica Porter, Contributing Author
Most people think nothing of construction equipment stored on the side of the road. But to an experienced thief, these situations mark a big payday. Leaving machines on-site exposes contractors to theft and can cost them hundreds of thousands of dollars in lost equipment and project delays.
“Leaving equipment on-site leaves contractors very vulnerable to sophisticated crews that can have equipment on a trailer and stolen in just two to three minutes,” said Ryan Shepherd, director and general manager of crime analytics and supply chain solutions for Verisk.
Theft risk is high over holiday weekends when jobsites are shut down for days. According to HUB International, $6.3 million in construction equipment was stolen at 300 locations during Independence Day weekend alone in 2024. And that’s just trackable equipment; the total number is likely much higher.
If equipment can fit on a typical landscape trailer–like a skid steer, lull, backhoe, skid loader or mini excavator–it’s vulnerable to theft. That risk increases if the machine has a strong black market demand and high resale value online or at an auction.
“A tower crane in New York City is worth a lot more money than a backhoe, but how do you steal it, move it and then sell it?” Shepherd said. “Anything you can easily put on a regular size trailer is most vulnerable–and that smaller equipment is still very valuable, ranging from $50,000 to $175,000.”
Recovering a stolen machine is complicated. Only 25% are found, according to Kyle Zanon, senior risk consultant with HUB International Limited. But protecting construction equipment is possible. The first step is to deploy tools to deter theft, and the second is setting up systems to increase the odds of recovering stolen machines.
Zanon recommends that jobsites be well-lit. Security cameras and “no trespassing” and “video-in-progress” signage should be visible. Mobile jobsites should consider geofencing, which creates a digital barrier around a jobsite and notifies contractors when assets cross the barrier. Machines should be immobilized by anchoring them with chains or cables, removing tires or using hitch protection. Contractors can use large, harder-to-steal equipment to block in smaller machines.
Technology can immobilize machines by automatically disabling the fuel, hydraulic and electrical systems if they’re stolen. Machines often come with telematics with real-time monitoring and location data to prevent unauthorized use. Equipment key monitoring is a simple way to prevent theft. Contractors should keep a list of employees with keys. Newer equipment often comes with keyless entry using RFID and Bluetooth–or even biometrics–to make machines more difficult to hot wire.
On stationary jobsites, contractors should install an 8-foot-tall chain link fence secured in concrete. Jobsites should include only one access gate in a high-visibility area to better monitor equipment movement. Contractors also should install alarms and motion sensors.
Recover Stolen Assets
To help recover stolen equipment, contractors should record the unique identifiers and numbers of each machine. Machines should have a steel-punched or dye-stamped PIN number in at least two places, one obvious to deter theft and one hidden.
Often, contractors find a serial number and assume that identifies the entire machine. However, each equipment part–like the bucket, arm and engine–has its own serial number. Contractors must be certain they record the correct number.
“When victims give law enforcement the unique identifiers, they end up giving a bucket number thinking it’s the main identifier number and it’s not,” Shepherd said. “So, when police find the equipment and run the number through the database, they don’t get a match.”
Contractors also should register all machines with the National Equipment Register (NER), a national database of stolen heavy equipment and ownership.
“Cars are registered at the state courthouse, so police can look at the database to see that it’s registered,” Shepherd said. “With construction equipment, there’s no title, registration or license–the receipt is the proof of ownership.”
If theft occurs, contractors should contact law enforcement. Next, they should alert their insurance companies, which will reimburse contractors for stolen machines. Many insurance companies offer incentives to owners who register with NER. Lastly, contractors should report the theft to the manufacturer, most of which keep a “hot sheet” of stolen equipment. When machines are brought to a dealer for maintenance, the dealer runs identifying numbers through a “hot sheet” database to verify legal ownership.
Contractors would not leave their personal vehicles uninsured and unsecured on the side of the road and should treat their business assets with the same care. Deploying a few preventative measures to protect equipment from theft can save contractors hundreds of thousands of dollars in replacement assets and schedule setbacks. RB
Jessica Porter is a freelance writer and editor who specializes in construction. For more information, visit www.JessicaLynnePorter.com.
