Building material costs are on the rise and the pain is being felt across industries. From building supply stores to construction sites and warehouses, budgets are being impacted by rising costs. While everyone from construction managers to contractors are watching to see if prices on items like copper and steel will keep trending upwards, thieves are keeping a close eye on the situation for another reason: rising costs means pricier materials available for the taking.
Recent data from the Associated Builders and Contractors (ABC) shows construction input prices rose 0.4% in July alone, with nonresidential costs up 2.6% over the past year, likely attributed to rising material and energy costs. These aren’t small, incremental changes; they represent a significant jump in the value of inventory sitting on shelves, in backrooms, or on job sites.
Tariffs and Supply Chain Pressures Are Driving Prices Up
Global trade policy is a big driver of this story. Tariffs on imported materials have been steadily adding cost pressure, and ABC’s chief economist warns that tariffs are likely to contribute to price hikes throughout the year.
Even major retailers are flagging the impact. Home Depot recently acknowledged that tariffs will lead to price increases on some items. This is likely to impact both consumers and contractors – anyone who relies on building supply stores to purchase their materials.
For supply houses, distributors, and contractors, that means the cost of replacement is rising and any theft represents a larger financial hit than it would have just a year ago.
High Prices Create High Incentives for Theft
When material prices surge, they don’t just affect bottom lines. They change the risk landscape. Items that used to be relatively inexpensive, like copper pipe or electrical wire, now carry a resale value that attracts both organized theft rings and opportunistic criminals.
And this isn’t a risk confined to remote construction sites.
- Supply stores face shoplifting and after-hours break-ins for high-value items.
- Warehouses and distribution centers are vulnerable to cargo theft and insider theft.
- Contractor storage yards and job sites are already frequent targets for equipment and material theft, especially when left unsecured overnight.
Each theft comprises not only the cost of the missing materials but also project delays, higher insurance premiums, and disruptions to customer commitments.
Businesses Must Strengthen Security to Match the Rising Risk
With prices and risk surging, companies can’t rely on “business as usual” security practices. Proactive security is the name of the game and must be prioritized in these uncertain times.
What does this mean? Truly proactive security layers multiple security strategies and technologies to create the ultimate defense – no matter the time of day or who is watching. This includes:
- Physical: Crime prevention tools thieves can see and hear including fencing, lighting, on-site guards, and surveillance cameras.
- Hidden: Take physical tools to the next level by layering on additional capabilities like remote video monitoring (RVM). Pro-Vigil’s RVM elevates the power of surveillance cameras by combining remote guards and the deployment of crime deterrents. This includes activating flashing lights, sirens and announcements when suspicious activity is detected.
- Enhanced: For the ultimate crime stopping solution, artificial intelligence (AI) should be added into the mix. Pro-Vigil’s AI-powered solutions make it possible to:
- Detect crime more accurately and faster than ever
- Teach the entire system to “learn” what is suspicious activity and become an even more powerful crime fighting tool over time.
- Eliminate false alarms that can cause issues for employees, sub-contractors, neighbors, customers and police.
Material Prices Rise – Your Risk Doesn’t Have To
It’s easy to view security upgrades as an expense. But today, they’re an investment. Preventing the theft of a few pallets of copper wire or HVAC units could pay for an entire smart surveillance system. Protecting inventory also prevents costly delays that ripple through projects or supply chains. With margins already under pressure, preventing loss isn’t optional. It’s essential to protecting profitability.
Ready to tackle this issue together? Reach out and let’s talk about keeping thieves away and pricey materials where they belong.
