February 2006 - NER Releases Report on Equipment Thefts in 2005

Nearly 40 percent of all construction and agricultural equipment theft occurs in just five States, according to a report released today by the National Equipment Register (NER), a national database service that heavy (i.e., construction and agricultural) equipment owners can use to record ownership and theft information in order to increase the recovery rate of stolen equipment. Based on more than 5,000 theft reports submitted to NER in 2005, Texas leads all other States in the number of heavy-equipment thefts, followed by California, Florida, Missouri and South Carolina.

NER's study also found that most equipment is stolen from non-owner premises or work site locations, which are likely to have lower security than owner premises. In 2005, more than 70 percent of stolen equipment was taken from work sites. Less than 30 percent was stolen from insureds' premises, which are typically more secure, fenced storage facilities.

NER based this third annual report of heavy equipment theft in the U.S. on its database of over 77,000 theft reports and data from the Insurance Services Office (ISO). The report is the most detailed analysis of construction and farm equipment theft ever published.

Study highlights include:

• Skid steer loaders were the type of equipment most frequently reported stolen (32% of reported thefts), followed by tractors (16%), backhoes (15%) and landscape loaders (9%).
• Theft is by far the most frequent risk to construction and agricultural equipment, compared with other risks, such as fire, collision, vandalism and water damage.
• Equipment age determines the likelihood of theft (In contrast to auto theft - newer makes and models, from 2000–2004, represent over 70 percent of thefts reported to NER in 2005.)
• The top four brands of equipment reported stolen to NER in 2005 were Caterpillar, Bobcat, John Deere, and Kubota.

The report also noted a rise in theft reports from States victimized in 2005 by hurricanes, especially Hurricne Katrina. Since the end of August, there has been a 22 percent increase in thefts from the Gulf region. In the weeks following each hurricane, the thefts occurred primarily in neighboring States. As more equipment moved into the storm-damaged areas, thefts increased there, as well. The type of equipment stolen in those regions reflects typical theft patterns: over 60 percent of the thefts reported were for skid steer loaders, backhoes, and small to medium-sized tractors.

"Not surprisingly, the availability and ease with which equipment can be stolen are the two factors that determine theft rates. A great deal needs to be done to improve equipment security as a deterrent against theft and to recover stolen equipment," said David Shillingford, president and chief operating officer of NER.

NER was established in 2001 to increase the recovery rate of stolen heavy equipment by improving the volume, quality, and availability of information for law enforcement and buyers of used equipment. NER has developed national databases of equipment ownership and stolen equipment and provides this information and equipment identification advice to law enforcement. NER is used by most leading equipment insurers, the largest equipment fleets in North America, and thousands of police agencies.

The 2005 study is available to NER member insurers, their policyholders, law enforcement, and the media. E-mail requests for a free copy of the 2005 Equipment Theft Report to NER at info@NERusa.com.

COPYRIGHT ©2005, ISO Services Properties, Inc.

The information contained in this publication was obtained from sources believed to be reliable. ISO Services Properties, Inc., its companies and employees make no guarantee of results and assume no liability in connection with either the information herein contained or the safety suggestions herein made. Moreover, it cannot be assumed that every acceptable safety procedure is contained herein or that abnormal or unusual circumstances may not warrant or require further or additional procedure.