Shingle prices go through the roof: Oklahoma roofers, suppliers see

Journal Record, The (Oklahoma City), May 22, 2009 by Ted Streuli

Juan Delao was arrested last month because he had a case of shingles.

More than a case, really. The 21-year-old construction worker had 6,500 pounds of them in the bed of a tan 2003 Chevy pickup truck. That might not be unusual except that it was 2:32 a.m. on Sunday, April 5, and the truck was in front of Northwest Roofing Supply.

According to an Oklahoma City Police Department report, there were 93 packs of Timberline shingles in Delao's truck and 25 more packs outside Northwest Roofing Supply's yard, right next to the spot where the fence had been cut.

"On the cameras it showed they started about 10:00 or 10:30," said Northwest Roofing Supply manager Rick Misuraca. "There were several trucks and they were very fast. There were a lot of guys. They were walking past some bundles and going to a specific weight or color, almost like they had a shopping list."

Last year, 93 packs of stolen shingles were worth about $1,400. This year, they're worth more than $3,500. That's made them worth stealing, said Northwest Roofing Supply owner Cliff Stockton.

"A year ago in February, shingles were $34.95 per square delivered to a roofer," Stockton said. "That same shingle now is $84.95."

Stockton said the price spike has slowed the roofing trade in much of the country as people put off repairs hoping the cost of materials will drop. An average residential roof replacement in Oklahoma cost about $6,000 last year, All American Roofing President Neil Cagle said. This year it's $12,000.

But damage caused by large storms in November and February is keeping Oklahoma roofers busy. It's also attracting storm chasers, roofers who follow disasters around the country hoping to turn a quick profit.

"You have all these out-of-town roofers that have lots of crews," said Stockton. "They're going out, cutting the fences and loading their trucks."

Stockton said the thefts have forced him to spend more than $75,000 on security this year. With a $5,000 deductible, he's reluctant to put in an insurance claim for a $10,000 theft. And he said he can't add the losses to his shingle prices because he would be unable to compete against other suppliers.

"You just suck it up and go on," Stockton said. "But from now on, these scum-sucking dogs aren't going to steal from me."

To deter shingle stealers, Stockton spent $40,000 on surveillance equipment and hired a security team for $25 per hour, 14 hours per day.

Jeff Faulkner, who owns ABC Supply in Oklahoma City, said he's had shingles stolen twice this year.

"They're taking large quantities," Faulkner said. "They're using trucks."

The thefts are affecting roofers as well as suppliers. Cagle said he had shingles stolen from a May Avenue job site in Oklahoma City last week.

Despite sluggish residential construction, demand for shingles has been high because of hurricane and other storm damage.

Owens Corning, one of the nation's largest manufacturers of asphalt shingles, reported that first-quarter shingle sales were up 49 percent over the same period one year earlier, helping balance weak insulation and building materials revenue.

That has convinced roofers and suppliers that they'll have to keep their heightened security measures, and the expenses that go with them, in place.

"We're going to see much more of this," Cagle said.

It probably won't involve Delao, who was convicted May 7 of second-degree burglary, concealing stolen property and presenting a counterfeit Mexican driver's license to police. He received a deferred five-year sentence and unsupervised probation and was ordered to pay $2,001.96 in restitution to Northwest Roofing Supply.

Delao, whose fake ID bore the name Cesar Servin, was transferred to the custody of federal immigration officials after his conviction in Oklahoma County.