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Trends in Equipment Rental Theft

Equipment rental theft is rising, with incidents nearly doubling in the past year. Rental companies face severe losses, not only from stolen equipment but also from increasing insurance premiums. Professional and opportunistic thieves target high-value items, especially around peak construction seasons. Technology like GPS tracking has become crucial for theft prevention and recovery, helping rental businesses reduce losses and improve security.

The equipment rental industry provides an invaluable service. From small DIY home improvement tasks to large construction projects, rented equipment helps get the job done. And as a business, equipment rental can be a very lucrative endeavor. However, the problem of theft threatens all that. The trends in equipment rental theft show the problem is only getting worse.

According to a 2023 report, National Equipment Register (NER) statistics show thefts of rental machinery nearly doubled in a year-over-year comparison. Meanwhile, thieves have become more sophisticated, using stolen credit cards to make fraudulent rentals and  then sell equipment online. For equipment rental merchants, especially those that deal in medium- to light-duty rental equipment, it’s time to find new strategies against theft. 

The Growing Problem of Equipment Theft

The numbers are shocking when digging further into statistics on equipment theft in the rental industry. A presentation from the National Insurance Crime Bureau (NICB) reported these figures:

  • Estimates place the annual loss from construction and farm equipment theft between $300 million and $1 billion.
  • A study of approximately 15,000 construction equipment thefts placed the average loss at $6,000 per incident.
  • The recovery rate for equipment theft across all targets is less than 7%.

Some types of equipment, like tractors and Bobcats, are prime targets for theft. This is backed up by the list of top five equipment brands stolen:

  • John Deere equipment accounts for 26% of all construction site thefts.
  • Not far behind is Kubota at 24%.
  • CAT equipment comes in third, with 7% of stolen equipment.
  • 6% of stolen equipment is Bobcat.
  • Closing out the top five is CASE Construction equipment at 2%.

That leaves 35% of rental thefts spread among other medium- and light-duty equipment brands. 

Moreover, the financial impact on rental companies extends beyond replacement costs and lost business. Insurance claims for expensive stolen equipment can lead to double-digit increases in premiums and deductibles.

Understanding the Motivations Behind Equipment Theft

Anyone who has ever been a victim of theft knows the anger and feelings of violation that follow. What’s less easy to understand is the motivation behind theft. It’s worth taking a few minutes to learn what drives thieves. With an understanding of the motivation behind equipment theft, rental businesses can recognize the warning signs and build better defenses. 

Types of Thieves

There are two main profiles of typical thieves: the professional and the opportunistic thief. 

Professional thieves have decided to make stealing their livelihood. Rented equipment becomes an attractive target because of its high value and the relative ease of walking off with it. And more often than not, a single individual isn’t behind the theft. The modern ability to sell things almost anonymously online has led to massive organized crime rings profiting from stolen goods.

Opportunistic thieves, on the other hand, tend to be motivated by the moment. They might find unattended rental equipment on a construction site and realize no one is watching. Other factors like drug addiction or hitting a rough financial patch can also motivate a non-professional thief to steal. They might see theft as a quick solution to a pressing need.

Seasonal Trends

Year after year, the Memorial Day holiday weekend is one of the most active periods for equipment theft. That’s the observation of the NER after years of studying theft trends. Part of the reason is that Memorial Day is the unofficial start of summer — the season when construction projects ramp up, and there’s more demand for equipment. Awareness of this and other seasonal trends is the key to better understanding the motivations behind equipment theft.

Common Theft Methods and Prevention Strategies

Equipment rental theft is a multi-faceted problem. The trends show thieves favor no single approach. Equipment can be lost to rental yard break-ins. Equipment rented with stolen credit cards and fraudulent identities enables thieves to simply walk away with the goods. Construction equipment “goes missing” from job sites. Then there are the massive online theft rings, deploying multiple theft methods to sell equipment on popular internet platforms.

Job sites and equipment rental businesses can use physical security to deter some threats. They can:

  • Create a single entrance and exit to reduce areas that need monitoring.
  • Install security lights and light towers to help prevent nighttime robberies.
  • Hire security guards.

However, the best solution is to embrace today’s technology. GPS trackers enable equipment rental businesses and police to locate stolen equipment precisely. More and more law enforcement agencies encourage using GPS technology in the war against theft. With the equipment recovery success stories, it’s easy to see why.

For instance, more than $3 million worth of stolen construction equipment was recovered in Virginia, thanks to GPS trackers. In the UK, local police returned a stolen tractor worth £30,000 (approximately $39,200) to its rightful owner and a home builder in Hawaii reecovered his stolen trailer with $400,000 in building materials using his GPS tracking device.

Theft Prevention for Rental Equipment

Whether through fraud or robbery, theft will continue to plague the equipment rental industry. The losses are staggering, but thankfully, technology can turn that around. While it’s important to implement multiple strategies against theft, GPS tracking for rental equipment can directly aid recovery efforts.