LoJack Corporation

Critical Issues

While there are some signs that the economy may finally be stabilizing, there is still a great deal of uncertainty. Tight credit will continue to present a challenge for the construction industry. 

With the challenging economy, it is more important than ever to protect and effectively manage existing equipment. The true cost of equipment theft goes far beyond the price tag of a skid steer, generator or backhoe. A number of hidden costs are associated with equipment theft including business downtime, rental fees to replace lost equipment, insurance cost increases for both premiums and deductibles and potential contract penalties. When totaled, the overall cost is a very high price for any business to pay, particularly in this economy.

Current Trends

Construction theft has continued at a steady pace in recent years with organized crime driving theft. A 2008 Equipment Theft Survey sponsored by LoJack Corporation and National Insurance Crime Bureau (NICB) indicated that 71 percent of respondents have experienced equipment theft. Nearly two-thirds of equipment owners affected by theft never see their equipment again. That figure is actually much higher than the national average, which according to the National Equipment Register (NER) and NICB, was only 21 percent in 2008.

We're also seeing a greater adoption of telematics. To meet today's ever-changing emissions standards, it's more important than ever for construction business owners to properly manage their equipment and ensure that they are compliant. An effective telematics solution will arm an equipment owner with critical information such as equipment location and uage, and enable them to manage their fleet more effectively.

Best Practices

The most successful customers we work with today are effectively managing their assets, maximizing their operational efficiencies and driving profitability. Similar to what many people are doing with their used vehicles, our most successful customers are extending the useful life of their existing equipment through carefully planned and executed maintenance programs.

Tags: 2010 January Issue , Executive Insights