Construction Equipment Theft Recoveries Rise Again In 2006, LoJack's Sixth Annual Theft Study Reveals
Study Shows Continued Increase in Professional Theft Rings
WESTWOOD, Mass., Jan. 9 -- LoJack Corporation today announced the results of its sixth annual Construction Equipment Theft Study in a report that provides valuable information on the growing problem of equipment theft-a problem that costs construction companies up to $1 billion per year in lost assets.* According to the study, which analyzed LoJack stolen vehicle recovery reports for the calendar year 2006, more than $18.6 million in stolen construction equipment assets were recovered by LoJack in 2006, up more than 18 percent from 2005. Since LoJack entered the construction market in 2000, the company has recovered nearly $70 million in stolen construction equipment.
Continuing Trend of Rising Professional Theft Rings
This year's study showed that professional theft rings rose again in 2006, with law enforcement discovering 14 theft rings and chop shops (vs. 11 in 2005) through tracking and recovering stolen equipment that was equipped with the LoJack System. Through these discoveries, police recovered more than $3 million in additional stolen assets that were not LoJack-equipped. In one theft ring bust alone in Los Angeles, police tracked a LoJack-equipped Ingersoll-Rand Skid Steer and recovered it along with more than $750,000 in additional stolen construction equipment-much of which was intended for shipment overseas to Russia and Germany.
"Professional thieves see construction theft as a low risk, high reward theft opportunity," said Richard T. Riley, LoJack's Chairman and CEO. "Typically, the risk of being caught is low because equipment is difficult to trace and is often located on remote, unsecured job sites. Since construction equipment carries a hefty price tag, the rewards for thieves are high. That's precisely why equipment owners need to have a solid action plan to protect their equipment and their businesses from theft. That plan should involve keeping good records of all equipment, employing as much physical security on the job site as possible and using products that not only attempt to deter thieves, but also track and recover equipment if it is stolen."
Popular Equipment Make Popular Theft Targets
The study also revealed that once again the newer equipment on the job site is the most common theft target because of higher resale value. The types of equipment most frequency stolen are (in order):
1. Backhoe loaders, skip loaders, wheel loaders 2. Skid steers 3. Generators, air compressors, welders 4. Forklifts and scissor lifts 5. Light towers 6. Light utility/work trucks 7. Trailers
These equipment types represented more than 70 percent of all construction equipment recoveries documented by LoJack in 2006. More than 73 percent of the equipment stolen and recovered was five years old or less.
Construction Theft Continues to Rise in Growth Regions
Rates of equipment theft and recovery were highest in those states where rapid growth is fueling construction projects. Additionally, theft rose in Louisiana this past year due to increased construction following Hurricane Katrina.
Based on LoJack's recovery data, the following are the top 10 states with the highest occurrence of equipment theft/recovery:
1. California 2. Florida 3. Texas 4. Arizona 5. Georgia 6. Nevada 7. New Jersey 8. Maryland 9. Illinois 10. Louisiana Construction Theft is a Local Issue
The report also indicated that construction theft is a local issue. In 98 percent of the cases, the stolen equipment was recovered in the same state in which the theft was reported. It was either in a storage facility or in use on a local jobsite. Unlike auto theft, which has a higher incidence in major cities around the country, construction theft is not confined to city streets and urban areas. Rather, it is often located in suburban areas where construction growth is high.
About the Study
The 2006 LoJack Construction Equipment Theft Report is based on state theft statistics and equipment recoveries documented by LoJack in 26 states from January to December 2006. LoJack has been tracking theft/recovery data for the past six years and will continue to issue these reports annually to provide the industry with valuable statistics and trend information.
About LoJack Corporation
LoJack Corporation, the company that invented the stolen vehicle recovery market, leverages its superior technology, direct connection with law enforcement and proven processes to be the undisputed global leader in tracking and recovering valuable mobile assets. The company's Stolen Vehicle Recovery System delivers a better than 90 percent success rate in tracking and recovering stolen cars and trucks and has helped recover more than $3 billion in global assets. The system is uniquely integrated into law enforcement agencies in the United States that use LoJack's in-vehicle tracking equipment to recover stolen assets, including cars, trucks, commercial vehicles, construction equipment and motorcycles. Today LoJack operates in 26 states and the District of Columbia, and in more than 28 countries throughout Europe, Africa, Latin America and Asia.
*Source: The National Insurance Crime Bureau (NICB) CONTACT: Paul McMahon LoJack Corporation 781-251-4130 Jeanne Bock Tier One Partners 781-861-5249 Laura Feng Tier One Partners 978-975-1414