- As lumber prices soar, contractors and producers have been forced to combat a rise in theft.
- One Canadian police officer told Bloomberg that lumber heists have seen a "drastic" increase.
- There have been reports of thieves taking off with nearly $100,000 worth of lumber.
- See more stories on Insider's business page.
Lumber prices are so high they've created an entire black market.
US lumber prices are currently more than double last year's, after they hit a record high last month. Jim Yarbough, a supply-chain expert from British Standards Institution, told Bloomberg the soaring prices have created a massive opportunity for an underground lumber market, as reports come out of lumber heists at construction sites, lumber yards, as well as logging trucks.
"The value on the black market of commodities changes just like they do above the board," he told the publication. "That's going to drive criminal activity just like all other forms of supply and demand."
The National Association of Home Builders told Insider it has been difficult to curate data around lumber theft, but the association has heard anecdotally of contractors who have suffered lumber heists. Last week, The Seattle Times reported a man was caught trying to walk out of a locked lumber yard with about 32 pieces of wood valued at $2,300.
Earlier this month, about $60,000 worth of lumber was stolen in Canada when thieves drove off with a trailer fully stocked with lumber, Calgary Police told Vancouver media outlet Daily Hive. In Canada – the leading exporter in softwood lumber – lumber theft has seen a "drastic" increase, a police official who described the situation as "a free-for-all" told Bloomberg.
There have been stories of lumber thefts across the US, from reported heists in Texas to Florida and Colorado, as the commodity can be easily resold on online outlets like Facebook Marketplace. In April, Tennessee's Department of Agriculture warned that landowners need to secure their properties as lumber thefts are rising in the state.
As lumber prices continue to hit records, many contractors and lumber yards have been forced to implement new strategies to protect their goods. Akash Homes, a home-building company in Canada, told Bloomberg that it has hired guards to patrol construction sites and installed security cameras after sites were stolen from multiple times. The company has lost over $82,000 worth of lumber and spray paints its lumber bright blue with the letter "A" to make it more difficult for thieves to resell the lumber on secondary marketplaces, Bloomberg reports.
Lumber prices dipped below $1,000 per thousand board feet for the first time since March this week, but the commodity is still up over 175% from this time last year. But, contractors and lumber producers are still forced to grapple with an industry that is becoming increasingly risky.
"Timber theft can be financially devastating to a landowner," State Forester David Arnold said in a press release from the Tennessee Department of Agriculture. "The value of the timber is not the only loss. In most cases, the thieves damage property and negatively impact conservation efforts and wildlife. We want Tennessee landowners to know what they can do to help protect their property against theft or accidental harvest."