In a struggling economy, desperate people do desperate things—including steal. During these difficult times, many roofing contractors can't afford to be lax and risk theft at their job sites, facilities and shops.
Stacy Kaufman, director of marketing and sales for the National Equipment Register (NER), is knowledgeable about heavy equipment theft prevention after working for 11 years at LoJack® Corp., Westwood, Mass. NER manages a database that records equipment theft and ownership records and facilitates information sharing with insurers, equipment owners and law enforcement.
According to Kaufman, who highlights "10 Myths of Equipment Security," there likely will be more theft as the economy recovers because more construction work will be performed.
Therefore, it is important for you to be prepared for potential theft at your job sites and take steps to prevent it. NER offers useful tips to help you protect your job sites.
Who is stealing?
When theft occurs at a roofing contractor's job site,the equipment often is stolen by other contractors or employees.
"Equipment is not stolen for parts," Kaufman says. "It is stolen to be used."
In fact, NER reports that in 2010, about half of all equipment theft involved employees. With regard to employees stealing, a company's size can be a factor; bigger companies have more employees and turnover and, therefore, more theft.
So what are thieves stealing from job sites?
Kaufman says thieves focus on equipment that is easiest to steal.
A skid steer, such as a Bobcat,® is the equipment type stolen most often from construction sites. Forty-eight percent of stolen equipment is landscaping equipment such as mowers, riding or garden tractors; 18 percent is loaders, including skid steers; and 13 percent is tractors, wheeled or tracked.
Thieves can steal most equipment easily because they tend to be organized and know what to steal and how to access equipment.
Kaufman says thieves can buy sets of keys on eBay that will start practically any machine because manufacturers' keys may work on more than one unit.
"Caterpillar is not going to make thousands of different keys," she says. "It's just not productive for them. For example, there are 20 or 30 Caterpillar keys or 20 or 30 Bobcat keys that will fit most pieces of equipment."
Although some states, such as Texas, experience more equipment theft than others, roofing contractors in all states are vulnerable. Equipment most often is stolen from work sites: 69 percent from job sites; 28 percent from the insured's location; and 3 percent in transit.
With the costs of machine replacement, downtime and penalties, NER reports equipment theft cost the construction industry an estimated $1 billion in 2010.
But there is hope—in 2010, about 19 percent of stolen equipment was recovered. And when stolen equipment is recovered, it often is found near the location from which it was stolen—usually within 100 miles. So what can you do to prevent theft from your job site or help ensure stolen equipment is recovered?
Start with your employees
Equipment stolen from roofing contractors can include trucks, rough terrain forklifts, aerial lifts, air compressors and sprayers, heat welders, hand tools (drills, grinders, etc.) and all-terrain vehicles (ATVs), which are used to haul material and debris on roofs.
Because employees have access to all job-site equipment, it is important you trust the people you hire.
Background checks can be a simple way to make you more secure about your employees' integrity and can cost as little as $25—a small price to pay for peace of mind.
NER also recommends establishing a written theft prevention policy you can link to incentives for employees.
For example, Kaufman tells a story about a contractor who told his employees if there was no theft during the company's next project, each employee could take a small piece of equipment (within a certain dollar value). During the next project, there was no theft; the incentive not only encouraged employees not to steal, but employees were watching to make sure their co-workers didn't steal.
You also should create a written security plan for each job site that outlines procedures your company will follow. Allow employees in the field to voice their suggestions and concerns regarding security issues—they are on-site and can identify potential problems.
Be sure you have a list of employees authorized to enter and leave the job site, as well as which employees can use certain equipment. You also may want to consider issuing identification cards to employees working on your job site or visitor passes to people who come to the site for a short time, such as subcontractors.
Use law enforcement
According to NER, when it comes to law enforcement, task forces have been broken up and eliminated because of the economy. So with limited resources, equipment theft often is not a priority for law enforcement.
However, that doesn't mean you still can't take steps to involve law enforcement.
According to NER, police officers are not thoroughly trained in equipment theft. They reportedly would like to do more, but obtaining information often is the problem. Incorrect serial numbers are the No. 1 reason stolen equipment isn't recovered—it is important you record the full, 17-digit serial number, year, make and model of all equipment; such information is crucial for law enforcement. In 2010, about 25 percent of thefts involved incorrect serial numbers. Having photos of the equipment also can be helpful.
Additionally, Kaufman says you should reach out to local law enforcement. Get to know them, so when you need them, there already is an established relationship. If police officers are aware of a high-risk project or potential activity on a job site during off hours, it will allow them to patrol more effectively.
If you experience theft, report it to local law enforcement as soon as possible to increase the chances of recovering the stolen equipment.
NER also offers suggestions such as hosting a local training session and attending an FBI Law Enforcement Executive Development Association Regional Heavy Equipment Theft Summit. Additionally, the National Insurance Crime Bureau and NER regularly hold one-day regional summits regarding heavy equipment theft.
Securing job sites
NER emphasizes the importance of implementing layers of security instead of relying on one security solution.
As previously mentioned, you should know complete serial numbers for all machines. Recording the numbers accurately is crucial. You should duplicate a unit's product identification number (PIN) or serial number in at least two places on the equipment (in one obvious place and one hidden location) and record the location of the numbers. In fact, NER encourages you to keep detailed records of your equipment in general, including equipment location assignments, delivery dates and anticipated return.
Using decals is another way to keep equipment secure. This can involve posting large numbers on equipment so if it is stolen, it easily can be identified by law enforcement and hopefully recovered. If you register your equipment in a national database that works with law enforcement, ask for decals that demonstrate your equipment is registered.
Marking equipment uniquely is an efficient way to deter thieves from stealing it. Kaufman mentions a contractor who paints all his equipment purple so it will be more noticeable if it is stolen, using the paint as a deterrent for thieves. You don't necessarily need to be that extreme—you could paint part of your equipment a unique color or paint the unit number in large characters.
Locks and immobilizers also can help secure equipment. There are equipment locks available that when employed prevent anyone from starting equipment. There also are locks thieves are unable to cut through. NER says locks should consist of a case-hardened chain and high-security padlock permanently attached to a fence and preferably should have tamper-proof guards. Cable or wire rope is difficult to cut and could be used instead of a chain.
How you handle your locks is important.
For example, Kaufman tells a story about construction sites that were being robbed during weekends in New Jersey. Law enforcement discovered a thief was going to construction sites on Fridays dressed as a construction worker (even wearing a hardhat and safety vest). He would see locks hanging (unlocked) on fences, take the locks off and hang his own locks. He then could come back during the weekend when the job site was shut down and have full access to the site. When he was finished stealing equipment, he would replace his locks with the company's locks.
This story demonstrates the importance of being vigilant regarding who is allowed on your job site. Be sure the locks you lock at the end of the day belong to your company.
You can immobilize equipment by removing wires or batteries and lowering all buckets or blades. For more valuable or expensive equipment, you can install theft prevention devices that disable fuel, hydraulic or electrical systems.
Warning signs also can be used to deter thieves from a job site. Post signs that specify penalties that will be imposed in the face of trespassing or indicate your equipment has PINs recorded.
If there is a fence around the job site, inspect it routinely and repair any openings. Additionally, do not allow items to be piled up on either side of a fence—this may create an opportunity for a thief to climb over the fence.
There are some more high-tech ways to protect your equipment, such as using a GPS, telematic system or LoJack.
A GPS is run by the U.S. government and uses a satellite system to tell you where your equipment is located. However, it can be dismantled, and if equipment is placed in a shipping container, a GPS won't work.
Telematic systems use GPS but allow you to receive information from your equipment. They offer more than just a tracking system and can provide a way to check engine hours, monitor oil and set up a geofence. Geofencing allows you to set up an invisible fence around equipment that will send you notifications if you are going outside the fence. According to NER, telematic systems are a good way to monitor equipment, and you receive more information than simply the location.
A LoJack is a police-activated recovery system that uses special FCC-allowed radio frequency technology that can penetrate many obstructions. However, a LoJack only works in about 2/3 of the area where people work—not in remote areas; in fact, it only is available in 26 states. Still, in 2009, more than 71 percent of LoJack-equipped construction equipment was recovered in less than 24 hours.
Some contractors pay people to watch their job sites. Offering a reward for monitoring a job site and catching a thief can thwart theft. And simply cleaning up the job site at the end of the day can help deter thieves.
There also are ways to arrange your equipment at the end of the day that discourage theft and help you easily notice a missing unit.
For example, you may arrange equipment in a single-file row, or you may use a "wagon train" method for equipment (positioning large equipment in a circular pattern with smaller items inside the circle). The sooner you notice the missing equipment, the sooner you can report it to law enforcement. However, insurance companies don't always approve of these methods because if one piece of equipment catches fire, they all will catch fire. So check with your insurance company for recommendations.
Some companies leave a crane hanging to hold up equipment to deter thieves—requirements of the Occupational Safety and Health Administration's crane standard at 29 CFR 1926.1417(e)(2) must be followed—or place equipment on a roof to better protect it. For example, ATVs are lightweight and likely are easier to steal if left on the ground. They typically are placed on a roof with a crane.
A strong partnership with insurance companies also is important. The more prepared you are to secure your job sites, the more insurance companies will reward you with lower rates.
Additionally, a partnership with your customers can help. Make them aware of the job site's vulnerable areas or any potential security issues.
If theft occurs at your job site, it is important you follow up with a police agency, as well as report the theft to NER.
Material theft
Material theft at job sites also is an issue. Expensive materials such as copper, which significantly has risen in price, are being stolen more often, and protecting such materials is important. Storing materials in a safe place with proper locks is key.
For example, materials can be stored in semi-trailers and parked so the trailer's back doors are against a building's wall, preventing thieves from opening the doors.
Many other common-sense security measures still apply—hire people you trust; be familiar with law enforcement; use strong locks that work and keep the job site locked after hours if possible; record serial numbers accurately when applicable; and be aware of what is happening at your job site.
"If materials are stored at a job site, they should be protected properly from the elements and secured to prevent theft," says Bruce Fryer, chief executive officer of Fryer Roofing, Fresno, Calif. "This sometimes means installing temporary fencing or placing materials on the roof so they are not accessible to the public. Materials and equipment should be secured and locked up, and in the case of equipment, keys should be removed."
In fact, you should monitor keys at all times. As previously mentioned, manufacturers' keys may work on more than one unit, leaving your equipment vulnerable. NER says you should make it part of your written company policy to remove keys from equipment that isn't in use. Record who has access to or is assigned keys for the job site and equipment. Consider having employees sign in and out for keys, and keep all keys in a safe place when not being used.
Regarding material theft from job sites, there are some contract issues that should be considered before a project begins because there can be confusion and overlap regarding who is liable for stolen materials.
"It all depends on the contract and who takes ownership of materials in transit, once staged on-site, mid-project installation, post-construction under warranty, etc.," says Aaron Martin, president of DRI Cos., Irvine, Calif. "There are various scenarios and sometimes even an overlap of responsibility. It is paramount this liability is negotiated and clearly defined on the front end to ensure proper insurance coverage for the owner and contractor."
It would be helpful to structure your contracts so once materials are installed, you are relieved of liability. You also should check with your insurance company regarding your coverage for materials awaiting installation, partially installed materials, etc.
Fryer says property owners should be prepared, as well.
"It can become dicey when an owner supplies materials and it turns out there is not enough material to finish the job," he says. "Questions develop about pilferage, the roofing contractor's application practices, wastefulness, etc. This is an issue that must be discussed with the owner up front, and the contractor should exclude responsibility for 'estimated' materials in the contract. Property owners should have insurance to protect against theft of materials they supply and store on their job sites."
New security challenges
Emerging technologies in the roofing industry most likely will increase the potential for job-site theft. For example, if your company installs photovoltaic (PV) systems, you should be prepared for the possibility of theft, especially as PV technology becomes more popular.
"Module theft is a reality the PV industry must face," says Craig Stager, director of PV design and engineering for DRI Cos. "Typically, the contractor or integrator is liable during construction, and after commissioning the system, the owner will take on responsibility. Modules usually are included in insurance policies, and sites with higher levels of security will receive better insurance rates."
Stager mentions various theft-prevention measures, including security fasteners, which are nuts and bolts that are difficult to remove; video cameras to monitor PV modules; reduced access by removing items that can be used to climb onto a roof; and, if necessary, a guard.
Knowing your serial numbers also applies to PV panel theft. Frank Homann, vice president of product development and systems engineering for United Solar, Auburn Hills, Mich., says his company's PV panels have serial numbers so they can track who the customer was and the installation date.
"Most panel makers have serial numbers," Homann says. "You can trace them back. They are registered panels, so you know who they were sold to and can track them and notice when they are somewhere else."
Before installation, you can mark the boxes PV modules are shipped in with the owner's name. You also can mark PV modules with the owner's name in nonremovable paint and post a sign that the modules are high voltage (even if they are not).
Make it difficult
Although many contractors believe they never have purchased stolen equipment, according to Kaufman, between 3 and 7 percent of equipment on job sites is stolen. There are at least 150,000 stolen machines in the U.S., and many of them now are part of the used-equipment market. But you can make it more difficult for thieves to sell stolen equipment.
Require documentation for equipment you buy—a manufacturer's statement of origin, bill of sale, serial number plate, proof of payment, etc. You also can do a background check on equipment through IRONcheck,® an online service that allows equipment buyers to request a serial number search against NER's database.
If someone tries to sell you something for much less than it's worth, you should call the police.
Other red flags, mentioned in a June 2010 Modern Contractor Solutions magazine article, "Equipment theft: challenges and solutions," include a missing, altered or reattached PIN/serial number plate; altered paint and model decals that conflict with PIN/serial number information; and an odd story from the seller regarding how he or she acquired the equipment.
Being vigilant when purchasing equipment will keep thieves from profiting from equipment they have stolen.
Make an effort
Job-site theft continues to be a problem and could become worse as the economy recovers and more projects break ground. Theft significantly can interrupt a project's progress and cause loss of valuable equipment.
It is important you do what you can to protect your equipment in various ways—mark it uniquely, use quality locks, establish relationships with law enforcement and be aware of what is happening at your job site at all times.
Krista Reisdorf is Professional Roofing's director of online communications.
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