ONSITEVIEW BlogTheft in the Commercial Construction Industry

Theft in the Commercial Construction Industry - How Much? And What Gets Stolen?

October 1, 2024

Theft in the commercial construction industry is a widespread problem, leading to significant financial losses each year. Understanding the scale of the issue and what items are most frequently stolen can help companies implement better prevention measures.

### **How Much Does Theft Cost the Commercial Construction Industry?**

• The estimated annual cost of theft in the construction industry ranges from **$300 million to $1 billion** in the United States alone. These figures account for stolen materials, tools, and equipment, but the total impact is often higher when considering indirect costs, such as:
• - **Project Delays**: Stolen equipment or materials can halt or slow down projects, leading to costly delays.
• - **Increased Insurance Premiums**: Repeated theft incidents may lead to higher insurance premiums.
• - **Replacement Costs**: Beyond the initial value of stolen items, there are often additional costs for replacement, including transportation and time lost.
• - **Downtime and Labor Costs**: Workers may be idle while waiting for new tools or materials to arrive.

### **What Gets Stolen Most Often in Construction?**

• Thieves target high-value, portable, and easy-to-sell items in construction sites. The most commonly stolen items include:

#### 1. **Tools**

• - **Power Tools**: Drills, saws, grinders, and other electric or battery-powered tools are some of the most frequently stolen items because they are valuable and easy to transport.
• - **Hand Tools**: Tools such as hammers, wrenches, and screwdrivers are easy to steal and resell, especially in bulk.
• - **Specialized Tools**: Tools specific to certain trades, like plumbing or electrical work, are often targeted for their high resale value.

#### 2. **Heavy Equipment**

• - **Excavators, Loaders, and Skid Steers**: These are high-value items that are surprisingly vulnerable to theft, particularly at unattended sites. GPS systems and serial numbers are often used for tracking, but these items remain attractive targets due to their resale value and use in black markets.
• - **Backhoes and Forklifts**: These large machines can be stolen and stripped down for parts, or sold in international markets.

#### 3. **Building Materials**

• - **Copper and Other Metals**: Copper wiring, pipes, and other metal materials are frequently stolen for their scrap value. Copper theft alone accounts for millions in losses annually, driven by fluctuating scrap metal prices.
• - **Lumber and Steel**: Large quantities of lumber, steel beams, and rebar are valuable and frequently stolen, especially during times of high demand in the market.
• - **Concrete Forms and Scaffolding**: While less common than materials like copper or steel, concrete forms and scaffolding parts are sometimes targeted due to their high cost and ability to be resold.

#### 4. **Vehicles**

• - **Pick-up Trucks and Utility Vehicles**: Construction vehicles, especially pickup trucks or vans used for transporting materials and tools, are frequently targeted. In many cases, the vehicle is stolen with tools and equipment still inside.
• - **Trailers**: Job site trailers filled with tools, supplies, and documents are often stolen or broken into.

#### 5. **Fuel**

• - **Diesel and Gasoline**: With construction machinery requiring large amounts of fuel, thieves often siphon diesel or gasoline from tanks or storage units. Fuel theft has become a rising concern, particularly as fuel prices fluctuate.

### **Key Theft Trends in Construction**

• - **Organized Crime**: In many cases, theft is not random but carried out by organized crime rings that target high-value construction equipment and materials. These items are often resold locally or internationally.
• - **Nighttime and Weekends**: Most construction site thefts happen during off-hours when the site is unattended. Thieves take advantage of reduced security during nights, weekends, or holidays.
• - **Unsecured Sites**: Sites with inadequate fencing, lighting, or security cameras are more vulnerable to theft. Large, open construction areas make it easier for thieves to access and transport stolen goods.

### **Preventive Measures**

• - **Security Cameras and Lighting**: Installing cameras and proper lighting can deter thieves.
• - **GPS Tracking**: Use GPS technology to track large equipment and even some tools.
• - **Inventory Management**: Implement strict inventory control procedures to monitor materials and tools.
• - **Fencing and Barriers**: Ensure that the site is well-secured with fencing, padlocks, and barriers.
• - **Marking and Registration**: Register equipment with national databases and mark them with identifiable features to reduce the likelihood of resale.

By understanding the scope and details of theft in the commercial construction industry, companies can better protect their assets and minimize losses.