GPS Tracking for Tools and Equipment: Pros and Cons

Most companies own equipment that is, if not expensive, then highly valuable to the business. This is especially the case for construction, maintenance, or manufacturing companies. So it makes sense that you’d want to keep track of these important assets. 

GPS tracking for tools and equipment helps you to gain control over your assets, know where employees are, prevent theft, and assist in asset recovery. 

Yet many business owners still hesitate to get a GPS tracking solution, and they have some valid concerns. But do the cons outweigh the pros? This article will help you find out.

Pros of GPS tracking for tools and equipment

I admit that we’re a bit biased, since we sell GPS tracking devices of our own. But we wouldn’t be so successful at it if there weren’t some real benefits:

Location Visibility and Transparency

This is the most obvious and most significant advantage of GPS tracking. By equipping valuable equipment like backhoes, cranes, and trucks with GPS tracking devices, you’ll be able to see the current location and history of any of your company equipment. 

Let’s say you have several Bobcats scattered across multiple job sites, but need to reallocate one to a new location. Instead of reviewing work orders or calling multiple people to figure out where they all are, you can just view their location on a GPS tracking map. From there, you can find out which is closest to the new job site and how long it might take to get there.

Preventing unauthorized use and theft

Construction sites suffered over $1 billion in losses due to theft in 2023, with incidents ranging from stolen construction vehicles to generators to trucks full of raw materials. Thieves are breaking into construction sites and making off with valuable assets to resell them on the black market. Companies are forced to pay high replacement costs while also losing time in the production schedule. 

GPS trackers can help prevent theft and aid in recovery in several ways:

• Real-time tracking. GPS tracking systems like Spytec sell vehicle tracking systems that can connect directly into a vehicle’s battery, as well as portable GPS tracking systems that come with magnetic cases that can attach to the exterior of a vehicle or container. This allows you to keep track of any equipment on site, whether it’s powered, unpowered, or heavy machinery.

• Geofence notifications. You can set up digital boundaries or geofences around your job sites that can warn you whenever a piece of equipment departs from the preset area. While it can be used to monitor legitimate activity, it also has excellent use as a way to detect potential theft. With these alerts set up, you’ll be notified of any unplanned movement from a workplace or construction site by mobile phone or email.

• Up-to-date inventory. By attaching trackers to your equipment, you’ll be able to keep tabs on all of their locations at the same time. It can function as a running inventory of your most valuable assets, and can help you detect missing or stolen equipment sooner. 

Manage costs

We already mentioned the high cost of replacing broken and stolen equipment, but GOS tracking can also be used in other ways. For instance, you can use GPS tracker historical data to optimize routes for better fuel efficiency and less travel time (thereby increasing employee productivity). 

Cons of GPS tracking for tools and equipment

If GPS tracking was a perfect solution, then everybody would be doing it. But the fact of the matter is that it’s not an ideal option for everyone.

Initial cost

Most off-the-shelf GPS trackers cost between $15 to $100 each depending on their size, complexity, and accessories. Most construction budgets run above seven figures, but some businesses do run on a very lean budget and might not be able to afford a few thousand dollars’ worth of GPS trackers. Especially when you consider the subscription fees.

Subscription fees

All GPS trackers use cellphone signals to transmit data, and that incurs a regular monthly cost. There’s also the cost of maintaining the companion apps that receive and interpret the actual GPS tracking data and have features like geofencing, location history, and more, so that all adds up. 

The more GPS tracking devices you use, the greater the subscription cost as well. And sometimes companies just can’t afford it. 

Privacy concerns

If you’re using a tracker on a static piece of machinery like a generator or a storage box, then employee privacy shouldn’t be an issue. The issue arises when you track the movements of a vehicle and the person driving it. 

While different states in the US have different rules when it comes to privacy, there are some key principles that should always be followed:

• The employee should always be informed of the GPS tracking

• GPS tracking should not be used to penalize or punish the worker

• Employers should have a written policy clearly indicating what is being tracked and why

Should I use GPS tracking for tools and equipment?

It depends. Does the initial device cost and subsequent subscription of GPS trackers drown out the advantage of tracking equipment and potentially recovering them from theft? You can only get that answer by carefully reviewing your project’s finances and weighing the risk of possible loss.

If you need more info to help you decide, get in touch with us today to learn more about how Spytec GPS can help your business.