July/August 1999
Dogs have long taken a bite out of crime in the scrap industry, but new scrap plant security systems offer high-tech alternatives that are putting Fido out of a job.
By Robert L. Reid
Robert L. Reid is managing editor of Scrap.
The bark of a scrapyard dog is being muzzled by the more powerful bytes of high-tech security systems.
These electronic defenders may never be your best friend—or bring in the newspaper that reports today's scrap prices—but over the years they've learned some intriguing new tricks. Modern security systems, for instance, can feature programmable cameras, microwave transmissions, infrared beams, and remote-control options thanks to modems and microprocessors.
Not all electronic systems are so sophisticated, of course. And the extra bells and whistles do drive up the cost of such systems, perhaps beyond the budget many scrap processors allocate for security. But overall, the capabilities of electronic security are rising while the basic prices are falling, industry sources say.
So, if you want to investigate your electronic security options, where do you begin?
Assessing Your Risk
First, you need to evaluate how at-risk your firm is to theft. Start by considering the level of crime in your surrounding neighborhood, your facility's physical barriers such as fencing, and how well-lit your plant and buildings are. Remember that criminals will steal "anything with any value whatsoever," notes Sunday Vogler, vice president, loss control, for CNA Insurance Cos. (Chicago), which covers numerous scrap companies.
Cash is often the main target, and thieves can be both ingenious and bold. In one incident, the criminal gained access to the cashier's room by pretending to deliver flowers, Vogler says. At another firm, Vogler was out in the plant when someone robbed the office at gunpoint, then stole a car from the parking lot.
Valuable scrap is also a natural target. One former processor recalls catching his own security guard using a company forklift to steal 2,400-pound boxes of copper. (For more on crimes in scrap facilities, see "Scrap and Crime.")
On average, each theft from a scrap operation involves cash or products worth less than $10,000, Vogler notes. In individual cases, however, theft and vandalism can take a heavier toll: A Philadelphia processor reportedly has had scrap worth more than $50,000 stolen in the past three years, while also suffering another $50,000 of equipment damage from intruders who broke in to joyride on its heavy machinery.
Getting Help
Fortunately, there are many security firms and products that can help you prevent such crimes. According to Bill Zalud, editorial director for Security magazine, there are roughly 13,000 to 15,000 security system manufacturers and dealers in the United States alone.
How can you find one that's right for you? Your local Yellow Pages will likely list several pages of security firms, both regional and nationwide, that provide everything from equipment to monitoring services to private guards.
Also, the security industry has several trade organizations that self-regulate business practices, promote professional standards, provide information on products and services, and can identify member companies in your locale. Try contacting the American Society for Industrial Security or the Security Industry Association (both in Alexandria, Va.), the International Association of Professional Security Consultants (Washington, D.C.), the National Burglar and Fire Alarm Association (Bethesda, Md.), and the World Institute for Security Enhancement (Greensboro, N.C.).
Before choosing a security firm, take time to review its references—making sure the references are recent—and verify that the company is properly licensed. Security firms often need at least a local business license and sometimes a special license to provide security services, notes Zalud. Your local police department can tell you what's required.
Have the firms you like visit your site to perform a security audit. Explain how your business operates, what kind of pedestrian or vehicular traffic you have in and around your facility, what threats you face, and how you prioritize those threats. For example, Zalud says, "Is internal theft a bigger concern than external intruders? Let them know. And be up front about what your budget is."
Controlling Access And Sounding Alarms
The security industry is an $88-billion business that's growing an average of 6 to 8 percent a year, Zalud says. Though U.S businesses spend more on alarms than any other security product, closed-circuit television (CCTV) is rising fast in popularity—it was the number-one new purchase for the past three years.
Today's high-tech, sometimes microprocessor-controlled alarm systems can include devices that detect when a door or window is opened, recognize the sound of breaking glass, and detect motion using photoelectric beams, heat sensors, infrared light, or high-frequency sound. There are also pressure-sensitive floor pads you can hide under carpeting, as well as systems that wire your ceiling in case a criminal tries to drop in unexpectedly. These devices can automatically turn on lights, start cameras, alert security firms, and sound audible alarms.
Access to buildings or gated areas can be controlled by electronic locks that open only when you punch in the correct code on a keypad or use a control card with a magnetic strip. Card readers cost more than keypad systems but make security simpler, especially at facilities with high employee turnover, notes Robert Shellow, president of IMAR Corp. (Bethesda, Md.). When an employee leaves the firm, you can immediately deactivate that person's card, he says. In contrast, with a keypad system, you must change the code every so often to prevent former employees from having access. But then current employees who have been on vacation or otherwise away from your facility might be locked out if they don't know the new code.
So-called "smart" cards also give you a record of who (or at least whose card) was used to enter a restricted area, along with the time they entered and left. Combining a card reader with a camera system gives you a visual record of who used the card.
Cards can even be programmed so that only a driver whom you know will be coming in after-hours can open the gate on any particular night, while the janitors who are scheduled to be in your facility between, say, 5 and 7 a.m. will have access only during those hours.
| Sidebar: Dog Days Fading Away
Scrapyard dogs haven't yet gone the way of blacksmiths and others whose jobs have been all but eliminated by technology. The fact is that some scrap operations still use dogs as part of their security. But these dogs might be the last of their breed, so to speak. One example: The president of a Southern firm that still has three guard dogs says the dogs might not be replaced once they're gone. So, while all "Beware of the Dog" signs haven't disappeared, few new ones are being posted. Soon, a new generation of scrap professionals may never hear strange-but-true stories about scrapyard dogs—like the dog that trapped the company owner in his own car, or the enormous Great Dane that liked to jump over its scrap plant's 6-foot fence and run back to the pound, or the adopted stray that hid food in piles of metal, so that it would appear with aluminum shavings on its nose while a lucky consumer found a bone in its shipment. Advances in security technology certainly played a part in displacing these watchdogs. But the potential for lawsuits has been the biggest impetus for removing dogs from the workplace. In short, dogs present "too much of a risk," especially if your plant is near a residential area, says a former processor. As if confirming that theory, another recycler recalls that the only intruders his dogs ever cornered were two neighborhood kids who'd climbed the fence and then had to scramble onto a truck while the dogs ran around, barking at them. "Having a dog on the premises would be a red flag," notes Sunday Vogler, vice president, loss control, for CNA Insurance Cos. (Chicago). And not just because the dog might bite a trespasser. "Dogs can jump, chase, or otherwise frighten a visitor, causing them to fall, causing property damage, or causing 'psychological trauma,'" she says. Dogs also create an opportunity for fraud. If someone claims that your dog attacked them, it could essentially come down to the person's word against the dog's—and "a dog makes a very poor witness," Vogler warns. The threat of lawsuits is so powerful it even extends to the naming of dogs. The Southern scrap company used to give its dogs ferocious-sounding names to fit their tough assignments. But the current three dogs have neutral names. As the president explains, if the dogs injured someone and the firm was cross-examined, it probably wouldn't help the company's case if the dogs had names like Killer or Bruiser. At the same time, the president concedes that his dogs really aren't vicious. If anything, they're a bit too friendly. But he hopes they provide a deterrent just by running up to the fence and barking. And while the dogs are a longstanding part of the company's security efforts, they do receive some modern backup: The plant also protects itself with security cameras. —R.L.R. |
Smile and Say 'Cheese'
Security camera technology has changed dramatically over the years. While older models might not have adjusted well to changes in the surrounding light, today's cameras can feature an automatic iris that contracts for filming in sunshine or expands in dim light conditions. Some cameras film using infrared light, while other integrated systems combine motion detectors with lights and cameras so they only start filming when the sensors detect someone in a restricted area.
Cameras that once offered a static view of the same scene can now pan across a room or plant, tilting up and down, even zooming in on details such as the license plate of a truck on the scale or a closeup of the driver's face—either automatically or under human control using a joystick, notes Ron Burris, sales and marketing director for Diamond Electronics (Carroll, Ohio), a security equipment manufacturer that tailors a CCTV system specifically for scrap plant surveillance. With multiple cameras, you can program a set of shots so that the system "patrols" your site, checking each door or gate in sequence. It's even possible to program random patterns of movement.
If employee theft is your chief problem, there are also covert cameras you can hide in sprinkler systems or disguise as clocks, smoke detectors, or other everyday items. But be careful where you conduct such covert surveillance. "Be mindful of privacy laws," Zalud stresses. Such laws usually prohibit filming people in locations where they can reasonably expect to be alone, such as a changing room or bathroom. And don't try to listen in on employee conversations—that's often against the law even in situations where recording someone's image is OK.
At the 50 or so scrap facilities where Diamond Electronics has installed cameras, scrap processors tend to be "light users," buying one or two devices at most, says Burris. But it's not hard to find other firms with a half-dozen or more cameras.
To determine where to place cameras, security professionals can use a spin-wheel device that calculates the camera's field of view based on lens size and the distances involved, notes David Stafford, president of Advanced Security Technologies Inc. (Denver). The images should overlap to ensure there are no "dead zones," but not so much that two cameras are filming the same area. If you want to record from multiple cameras to a single VCR, you will also need a multiplexer with the same number of channels as cameras.
Cameras transmit their images back to VCRs or TV-style monitors using various technologies. In addition to hard-wired models that use buried or otherwise secured coaxial cable (or dedicated phone lines), there are wireless units that operate on radio frequencies and cameras that use microwaves to transmit images from distant locations. Hard-wired systems often provide the best image quality since radio frequencies can be affected by machinery in operation. Microwave transmissions, on the other hand, can be affected by the weather and require a direct line of sight between the transmitter and receiver.
Temperature can also affect cameras—excessive heat reduces picture quality and color, while extreme cold can slow or stop motorized zoom lenses. To combat these problems, you can use heaters and fans that keep cameras within a temperature range of 50º to 100ºF, Burris says.
| Sidebar: Scrap and Crime
Since 1995, CNA Insurance Cos. (Chicago) has received approximately 100 claims for thefts, robberies, and burglaries from scrap companies involving a loss of at least $1,000: - 25 percent of the claims involved thefts of cash, usually in after-hours break-ins but also during the workday (sometimes while an employee was carrying company money to or from a bank). Average loss: $5,700 (most of it from facility damage caused during the break-in rather than the amount of cash stolen);
- 20 percent involved thefts of metal, either inventory or parts, especially radiators and copper-bearing items. Average loss: $5,500;
- 18 percent involved thefts of tools or vehicles, with torchcutting equipment the most common target. Average loss: $5,400;
- 15 percent involved thefts of equipment, especially vehicles, payloaders, and containers. Average loss: $11,800; and
- 5 percent involved thefts of office equipment such as computers, fax machines, and printers. Average loss: $2,500.
Scrap plant thieves have also stolen time clocks, two-way radios, surveillance cameras and VCRs, guns, and a case of beer, CNA reports. At one metal distributor, they even took the fence that was supposed to keep criminals out. —R.L.R. |
Paying to Prevent Crime
Budget, of course, will determine what kind of security systems you use. Alarm systems can cost anywhere from $5,000 to six figures, notes Zalud. With cameras, a single black-and-white system, including monitor and VCR recorder, can cost $1,000 to $2,000 to purchase and install, sources note. Add about 50 percent more for color. Other options—such as pan/tilt/zoom—add even more to the cost. One manufacturer estimates $5,000 to $7,000 for a single pan/tilt/zoom color camera housed in a temperature-controlled dome, plus $3,000 for each additional camera. One scrap processor recalls spending about $20,000 to install seven cameras.
The good news is that the overall cost of electronic security equipment is dropping. For instance, the same CCTV unit that cost $1,000 five years ago might be only $200 today, while also offering sharper picture quality, Zalud says. It's also possible to limit expenses by doing some of the installation work yourself. A West Coast scrap firm, for instance, spent only about $5,000 to install its eight hard-wired cameras because employees dug the trenches and laid the necessary cables. And check with your insurance company—installing a security system can sometimes reduce the premiums for certain coverage.
Your insurer might also favor an audible alarm over a silent one in order to scare off an intruder rather than try to catch the criminal in the act. Unfortunately, various police and security firm estimates say that 90 percent or more of all alarm incidents turn out to be false alarms. In fact, the problem has grown so large that communities around the country are imposing fines on property owners whose electronic systems go off too many times by mistake—as much as $10,000 in one California county.
So, if you're experiencing a number of false alarms, check your system. One scrap company reduced its false alarms by replacing its motion detectors with more hard-wired door and window sensors. Cameras can also help determine if there's really an intruder on the grounds before summoning the police.
Besides the upfront cost of the camera system itself, there can also be ongoing costs, especially if you hire a security firm to monitor your alarm system. Monthly fees for such services can start around $30 to $40 for a small monitoring operation, rising depending on the level of service you desire. One scrap facility that went high-tech pays about $250 a month. You can even get someone to remotely monitor your CCTV, though the vast majority of businesses either watch the cameras themselves or simply review the VCR tapes if they suspect a theft or break-in.
Increasingly, alarm monitoring companies are consolidating into bigger and bigger concerns, potentially located hundreds of miles from your facility. Such facilities, called central stations, feature the most advanced technology, the best-trained employees, and detailed information on whom to contact—from company officials to local police—when an alarm rings at a client's facility, Zalud says.
21st Century Security
Security in the scrap industry has certainly come a long way since its scrapyard dog days, and it's continuing to evolve.
Given the high incidence of cash-related thefts, processors are increasingly paying their over-the-scale suppliers only by check. Others are building in physical and electronic barriers between cashiers and suppliers. In one company, for example, suppliers enter on the ground floor and request payment through a telephone. Cashiers, located on another floor, dispense payment via a pneumatic tube, while keeping an eye on the customer using CCTV.
A handful of scrap firms have also installed automatic payment systems that work like a bank automated teller machine (ATM). Suppliers drop off scrap, receive a card encoded with the value of their load, and insert it into the firm's ATM, which dispenses the cash. Ken Gruber, president of Transact Payment Systems Inc. (St. Petersburg, Fla.), says he's installed five such scrap plant ATMs in the last two years, with three more in the works.
Such machines are usually protected by various measures, including thick cement walls, roll-down steel doors, motion detectors, and cameras either built in to the ATM or trained on the machine. The money is secure in a safe that can feature heat and shock sensors in case someone tries to burn through the door or smash it open. Armored cars and armed guards are used to replenish the ATM periodically.
Gruber says he simplified bank-style software—which can reportedly cost $150,000 or more—to meet the less-demanding needs of scrap companies. The result is an ATM that can be installed with training for about $45,000, plus the cost of the armored car service, which runs about $75 per weekly or biweekly drop. In turn, these ATMs enable companies to attract cash business they might otherwise have turned away, while also saving the cost of a cashier's salary.
There's also high-tech security equipment that allows you to plug a TV monitor into your car's cigarette lighter and drive around your operation, checking the images from various cameras. Or you can use a modem to monitor the cameras from home or reprogram an employee's security card through your home PC or laptop. If the weather's bad—say a blizzard strikes unexpectedly—you can even automatically shut down your entire site without having to shovel your drive or trudge through the snow.
And your scrapyard dog, now happily retired, won't have to leave that cozy spot by the fire. •
Dogs have long taken a bite out of crime in the scrap industry, but new scrap plant security systems offer high-tech alternatives that are putting Fido out of a job.