Copper Theft Presents Significant Risks to Businesses

Theft of copper and other metals has long plagued businesses and homeowners, and the problem has gotten worse in recent years. The price of copper has significantly increased over the past decade, making it a tempting target for thieves. Copper thieves can cause extensive damage in the act of extracting copper wiring or piping, often vastly greater than the value of the copper itself. New state laws and city ordinances attempt to prevent any benefits that may come from copper theft, and businesses and homeowners can take steps to protect themselves from the most egregious acts of theft.

A Growing Problem

Thieves usually steal copper and other metals in order to sell it to scrap metal dealers or recyclers. Copper is frequently visible and relatively easy to steal. According to the enterprise security industry journal Security, the price of copper nearly doubled between 2005 and 2008. Many law enforcement officials, according to Security, claim that methamphetamine addicts account for a large number of copper thefts around the country. It has become a major liability for many businesses, costing them millions of dollars per year in both losses of material and the cost of repairing damage caused by thieves. Theft of copper wiring may also pose a risk to public safety. The FBI reported that residents of Jackson, Mississippi did not receive adequate warning of oncoming tornadoes in April 2008 because thieves had recently stripped copper wire from five of the town’s tornado warning sirens.

Water Scarcity Means Risks for the Enterprise and Public Sectors

Texas, along with other states and regions of the country, is experiencing an historic drought. In addition to the wildfires that caused billions in damage around the state last year, drought conditions have caused critical water shortages. Small towns and water-intensive industries have been particularly hard-hit. Public sector functions, particularly public utilities, are often the first to feel the effects of water scarcity. The risk quickly moves into the private sector, affecting industries like agriculture and, eventually, any business that relies on running water. Recent reports suggest that much of the private sector has not planned for the risks associated with water scarcity. Businesses that rely on available water may suffer, as may those that invest in utilities and other water-dependent enterprises.

According to the Texas Water Development Board (TWDB), drought conditions currently affect all regions of the state. The various indices of drought conditions, precipitation, and fire risk range from above average to extreme. The Edwards Plateau, which encompasses most of the Texas Hill Country and includes the city of Austin, is experiencing a “moderate” drought on the TWDB’s scale. The crop moisture index for the region is “severely dry,” just below the highest index of “extremely dry,” and the region is at high risk for fire.

Click to enlarge in a new window