Despite the progress made in the recovery from the pandemic, the same problems continue to plague the construction industry. These include inflation, supply chain snarls, high cost of materials, and crime. Actually, one thing has changed and not in a good way. Crooks are becoming more brazen.
What does this mean? Brazen thieves do things like commit crimes in broad daylight and in front of people. They are more dangerous and will resort to violent measures if necessary. They may not wear masks because they aren’t worried about getting caught or identification. It’s usually a bad sign when they’re not wearing disguises.
In broad daylight, intruders spotted the company owner. Despite this, they continued with their criminal plans as KOAA News Reports. They carried weapons and made threats to the owner. The news story reveals construction site thefts cost companies six figures worth of losses. Colorado construction companies have lost $1.04 million over an eight-month period. One construction site theft in Lincoln, Nebraska, cost almost $60,000 as reported in 1011 NOW.
United Contractor’s Jason Robichaud tells Levelset News that construction site theft is growing more prevalent and sophisticated. “We saw a big shift in 2019 when it got progressively worse and more brazen. It’s gotten to the point where (thieves) are cutting water lines to completely take out an entire commercial building plumbing system for the copper,” he said.
Brazen thieves aren’t the only reason why companies need to ensure they do what they can to prevent construction site theft.
Equipment Costs and Their Associated Theft Costs Soar
With the cost of equipment and materials rising, it indicates there’s a crucial need to stop theft from happening in the first place. The National Equipment Register (NER) and the National Insurance Crime Bureau (NICB)’s Equipment Theft Report justifies the need to do whatever possible to hold on to your assets. Heavy equipment stolen in the U.S. costs $300 million to $1 billion annually. Fewer than 25% of equipment is ever recovered.
Beware, the data in the report does not contain losses from business disruptions. Some examples of losses include short-term rental costs, project-delay penalties, and unused workforce and management time.
It’s not just heavy equipment theft that’s causing problems. Crooks also go after materials because their cost has soared to historic levels in recent years. The situation is so dire that the Associated General Contractors of America issued a construction inflation alert for the first time in its 35 years of tracking this data.
Savvy criminals believe stealing materials is low risk with a high reward. The National Association of Home Builders states the cost of materials grew 19.2% year over year and jumped 35.6% since 2020. This includes softwood lumber, steel, ready-mix concrete, and gypsum products. On top of this, there’s a concrete shortage according to a WCNC story. This shortage impacts large construction projects because it’s a type of cement that makes concrete.
There is no guarantee you’ll be able to replace heavy equipment quickly whether it’s a rental or a purchase. Renting equipment is a problem as its cost has multiplied. The American Rental Association (ARA) outlook for equipment rental revenue forecast expects a 9.68% increase in revenue and reach almost $52.5 billion per InTents Magazine article.
The reason for the increase is because it’s more cost effective to rent instead of buy. As the prices of rentals climb, it leaves fewer options for finding replacements after a theft. Besides, it turns out that rental equipment has a higher risk of theft than owned equipment. They make up 30% of all construction equipment as reported in an IRMI story.
Maybe you can replace stolen equipment with used equipment. The price of used equipment has also gone up. A Market Trends Report from Ritchie Bros Asset Solutions on used equipment and trucks from June 2021 shows truck tractor prices are up by 23% year over year (YOY) in the U.S. Canada isn’t better off. Medium earth-moving equipment has increased by 28% YOY. Simply put, the cost of used equipment has skyrocketed in North America.
Besides, sometimes the used equipment being advertised as refurbished is actually stolen. Only on CBS2 has a story where thieves have targeted unsecured construction sites or used stolen cards to rent heavy equipment with no plans to return it.
The cost of a replacement — whether a rental or used equipment — will most likely have a much higher price tag than when you originally brought it. Therefore, it’s crucial to stop theft from happening.
How to Help Deter Construction Site Theft
Propmodo has found the most common cause of theft on construction sites is due to “security negligence.” This means the construction site doesn’t have sufficient security. The most secure construction sites work to incorporate multiple layers of security. This means they do everything from something as simple as adding lighting and fencing to the more involved implementing technology like asset management and remote video surveillance.
It can be basic things that are common sense such as locking up equipment and tools at the end of the day. Don’t leave keys somewhere on the site or hidden in the equipment. Thieves know where to look.
Using an asset tracking system goes a long way to protecting your assets. This system can help extend the life of the equipment and let you know where they are at all times. Asset management systems can automatically let you know when it’s time to for equipment to undergo servicing and maintenance. If you run into a problem on the construction site and need to bring in an asset, you can check the system to find the nearest asset.
There’s a security technology with multiple layers built in. That is video surveillance with remote monitoring. You can level up the security when you opt for an integrated security system that combines video analytics and trained monitoring operators. Together, these have the ability to help deter construction site theft.
Analytics cannot work alone because it doesn’t have the ability to tell the difference between a vehicle that’s supposed to be there and one that’s not. The monitoring operator does. Monitoring videos for hours on end is a monotonous undertaking. Video analytics can close this gap. The monitoring operator works in a building that’s located away from the construction site. Unlike security guards, they never fear for their safety. As a result, they can make smart decisions.
Most traditional security technologies are reactive. They don’t do anything until a crime occurs. Security cameras with remote monitoring by humans and technologies can help catch a potential problem before the crime happens. Therefore, it’s proactive security technology.
As soon as the monitoring operator spots someone approaching the construction site, they can issue a warning on an on-site speaker. This may stop some intruders, but not all of them as they’ve become brazen. The next action would be to call law enforcement and track the suspect.
They also deliver many other benefits including helping to mitigate liability, save on expenses, create training content, and find ways to better organize the construction site to improve productivity and safety.
An effectively designed video surveillance system for construction sites can watch over the entire jobsite. Another advantage of video surveillance technologies is that they can save all recordings. These can provide evidence that can help you in criminal and liability cases.
Liability lawsuits are almost impossible to win without proof. Videos can show you took the appropriate measures to create a safe construction site. They can also help determine if someone purposely injured themselves or arrived on the site with damaged equipment.
Using Proactive Security to Help Deter Construction Site Theft
As previously mentioned, remote video monitoring stands out from other security solutions and technologies in being proactive. It can maximize security while helping to reduce risk and liability. Because of this, Stealth Monitoring clients in the construction industry often see a return on investment within months.
This is why it’s important for construction companies to work with a security company that has experience in the industry. Securing a construction site isn’t the same as securing a retail center or an apartment building.
An experienced security consultant can conduct a review of the construction site and make recommendations that meet the company’s needs and budget. Once approved, a security team will install video cameras in strategic locations around the jobsite and start monitoring them.
Construction companies have a responsibility for the safety of workers, visitors, and vendors. The price of not having cameras and people watching them can potentially put a worker’s life at risk, especially with criminals becoming more violent and dangerous. Video surveillance offers the highest level of security for your jobsite with its multiple layers.
Not all remote video surveillance technologies have the ability to follow and identify intruders. They don’t all have the capability where the trained monitoring operator can communicate with the criminals from a safe location. Here’s a checklist of questions to ask to help you choose the right video surveillance service.
To learn more about construction security, pick up this free construction site security guide. For a customized construction security solution that fits your jobsite, budget, and requirements, contact us.
Texas Private Security License Number: B14187
