Equipment theft is a significant problem for businesses. Here are 5 simple steps to reduce the risk of theft and limit the impacts should it happen to you.
Theft and equipment loss are significant problems for construction companies. They can affect a company's ability to operate, reduce productivity and ultimately have impacts on bottom lines.
Sadly, equipment theft is all too common. The majority of businesses in the construction industry experience theft at some point, with many experiencing repeated events. You only have to search in your internet browser to find the most recent stories of large scale theft featured in news outlets like these:
Unfortunately, many more thefts than those featured in the news occur across Europe. Theft and sale of stolen equipment has become big business, and thieves often work for larger criminal networks. In some cases, thefts have become so frequent that companies struggle to find the time or resources to report them to the police.
While the situation is challenging, there is a fight-back taking place. Organizations such as On the Tools are trying to raise awareness of the issue, and the police continue to crack down across countries. At the same time, business owners can take to steps make theft from their stores harder and less desirable, and to reduce the impacts should the worst happen.
Here are five tips that can help reduce the risks and impacts of equipment theft 👇
Some instances of theft or loss occur due to lack of employee oversight or the decision of employees to take items for themselves. Other instances involve theft by external parties, fuelled by an increase in the demand for certain tools or equipment on the secondhand market.
Both categories of theft are made more likely when companies have a poor oversight of equipment in their tool crib. It is important to know what equipment is in the crib, which pieces are most valuable, which most commonly go missing, and when the risk of this is the greatest. Understanding where the risks lie enables companies to better manage equipment and put measures in place to prevent theft.
Once you have identified the equipment you have in your crib, you should record and document it to keep complete control. When you have clearly documented equipment it is easier to manage. This means you can:
Clear documentation of equipment can both reduce the risk of loss and theft, and help you to get compensation or replacements in the event that equipment goes missing.
Creating a digital record of equipment makes this even simpler. Paper records can easily be lost, damaged or falsified. This can leave room for data entry errors that, whether intended or otherwise, can increase the risk of equipment loss or theft and potentially prevent payouts by insurance companies.
A digital system like Onix Work gives a clear and complete history of each item of equipment. Digital twins of each equipment are created in the software which can be used to track use, manage documentation and plan for inspections and maintenance.
Once you have set up digital version of your equipment in Onix, you are ready to make a digital tool crib. This is called Onix Tool Store and it acts like a library system for equipment. This is how it works:
1️⃣ Employees come to the tool crib with the equipment they want to loan.
2️⃣ They scan a card (self service) or register their name with the tool crib manager (served).
3️⃣ The equipment is scanned (if it has Onix Tags) or searched for and checked out against the employee’s name.
4️⃣ Equipment will be prevented from checkout if it has been marked as not for use or is missing required maintenance.
5️⃣ Equipment managers can send email reminders to employees to return equipment.
6️⃣ When returned, the equipment is scanned or registered again and marked as returned.
Onix RFID, QR and NFC Tags make this process even simpler. Equipment can be scanned to identify, access information, check out and check in instantly. This means equipment is always accurately accounted.
Using RFID technology can also open up the possibility for unattended tool cribs with the same security level as having a person to document check-in and check-out. Onix Checkout makes it physically impossible to leave a tool crib without recording the use of equipment thanks to the use of a secure equipment scanning room at the entrance to a crib.
Here's a demo video of how Onix Checkout works 👇
To add an extra level of security, you can also set up equipment tracking. This means you as a manger receive automatic emails when equipment is checked out of the tool crib and returned. Equipment tracking occurs in real-time.
Push notifications can also be sent out to employees using equipment. This helps them to remember equipment return deadlines and encourages them to use equipment responsibly. No more 'forgetting' to return tools.
Real time GPS tracking is also possible in Onix Work. An integration with ABAX means you can get live location data to help you track the highest value equipment that you want to have stronger control over.
Keeping employees up-to-date on security procedures is a key line of defence against theft. It’s vital that tools and equipment be easily accounted for at the end of each shift or day. Using a digital program such as Onix Tool Store makes keeping all this data easily accessible to everyone.
Physical security measures are critical to reducing the risk of equipment loss. Thieves are attracted to easier targets that have weak security measures. Ensuring you have strong security measures is one of the best ways to prevent theft and to minimise the value of equipment stolen if break-ins occur.
Setting up a tool crib with a physical presence for the most expensive equipment is a good way to reduce theft of items that you have identified as high risk. Making sure employees have to register checkout prevents internal theft, and placing items in a monitored location makes theft by external actors harder.
Visible security measures like cameras may also deter thieves from entering your property and stealing equipment. Consider setting up a system with lights and signs to make cameras obvious. Place them so they cover key access areas and entrances to where equipment is stored.
Cameras also help with police reports and insurance claims if equipment is stolen. Providing evidence can speed up processing and help in the fight against equipment theft.
Setting up multiple locks or vault systems can slow down and deter thieves. By delaying their progress into your facilities, you make theft harder and increase the possibility that perpetrators will be caught on other security systems like cameras.
Multiple locks can also be used to protect high value equipment such as power tools. Storing them behind additional locks makes them harder to steal and can help reduce losses.
Equipment theft from vehicles is common. Company vans are easy targets when parked in public spaces. Locks and windows can be easy to break, and security protections are limited. To reduce the risk of equipment theft in vehicles you can:
In many cases, thieves will go out of their way to steal equipment despite strong security measures. Stolen equipment is valuable on the second hand market and thieves are willing to take the risks to acquire it.
The best way to protect your business from the impacts of equipment loss and theft is to make sure your insurance provider covers the costs should the worst happen. With insurance coverage, businesses can buy new equipment and keep operations running to prevent costly downtime. Without coverage the impacts can be devastating, especially for small businesses with tight margins.
Theft across the European construction industry is widespread and unnecessarily drives up costs for a sector with sensitive profit margins. While many companies experience equipment loss or theft, being aware of and addressing risks can have a strong positive impact.
It is advisable for companies to decrease their risk exposure to loss and theft by tracking their tools and equipment inventory with digital tools such as Onix Tool Store, setting up physical security measures and investing in insurance coverage.
If you are interested in learning more about reducing equipment theft or about Onix Work or Onix Tool Store, talk to one of our experts.