High Theft Statistics
Recent insurance industry surveys have revealed that more than 500 machines and plant hire equipment are stolen from construction and rural farming sites each month and more than one third of construction and engineering companies have had assets stolen in the past year.
Mini excavators are the type of machine most frequently targeted and their black-market resale value can be in excess of £100,000. Buckets, generators and breakers are also popular with thieves as they tend to be left unsecured and are easier to mobilise than some of the larger machinery. That said, all types of machinery are targeted by thieves and fraudsters.
In the construction industry this amounts to £70 million in stolen plant machinery every year. The total loss incurred by the industry is considerably higher, at approximately £800 million, when associated losses such as downtime, repurchasing, rehiring and increased insurance premiums are taken into account. The European Rental Association estimates annual losses of €1.5 billion on stolen plant hire equipment and associated losses, in the construction industry.
Low Recovery Rates
In a volatile commercial and domestic property market, construction firms simply can’t afford these kinds of losses. This issue is seriously exacerbated by the fact that the industry historically has a low recovery rate for stolen assets of only around 10%.