Termites can be financially devastating. The Formosan subterranean termite is the most destructive insect in Louisiana. It can cause major structural damage to a home in six months and complete destruction in two years.
Losses caused by termites indicate that a greater emphasis on Integrated Pest Management (IPM) is needed. Su (1994) estimated the annual cost of controlling termites to be $1.5 billion in the United States. In 1993 the Wood Protection Council of the National Institute of Building Sciences estimated the annual costs of replacing wood damaged by termites to be $2 billion, up from $750 million in 1988 (Anonymous 1993). These costs must be higher today. The Formosan subterranean termite is thought to cause $1 billion a year in losses in the United States. It is thought to be the most destructive insect in Louisiana, affecting the economy and wealth of the state even though its known range does not include the entire state (Hu et al. 2000). Also, it is not widely distributed in all parishes. Estimates of losses each year are $300 million in New Orleans and $500 million in Louisiana.
In spite of management attempts, the Formosan subterranean termite is causing severe economic losses to property. One house has split apart in New Orleans. Others were demolished because of structural damage caused by the Formosan subterranean termite. An apartment complex was demolished 17 years after it was built because of damage by this termite. Another house was demolished and rebuilt using pressure-treated wood because several attempts to control the Formosan subterranean termite had failed. People are defaulting on loans because they do not have the money and can’t get loans to repair their homes after damage by the Formosan subterranean termite. For others the Formosan subterranean termite has caused thousands of dollars in repair and treatment costs and disruption of their lives.
One of the most important investments in a person’s life is a house. Now this is at risk from the Formosan subterranean termite. If a structure is weakened by Formosan subterranean termite attack, the structure is at a greater risk of collapsing, resulting in increased safety risk and economic loss.
The Formosan subterranean termite infests live trees. Weakened trees are susceptible to being blown over in high winds and possibly falling on homes, structures, cars, other property, roads or people.
The National Association of Home Builders compared the costs in March 2000 of building a one-story, slab-on-grade, 2,457-sq.-ft., single-family, detached home using untreated wood, CCA-treated wood, light-gauge steel and concrete masonry (Julie Cole, personal communication). Costs were determined for exterior walls, interior walls and the roof system. The additional costs over untreated lumber of each of the other three systems were $1,654 for treated wood, $5,509 for light-gauge steel and $16,092 for concrete masonry. Lumber may be treated with preservatives other than CCA, each resulting in somewhat different cost factors. For example, the costs of treating wood with borates would be approximately 1.5 percent higher than with CCA, resulting in a total incremental cost of $1,679. The cost of the preservatives in pressure-treated wood is a small percentage of the cost of the treated wood product (5 percent to 7 percent).
Humans must decide which costs they choose to pay: direct or lost opportunity costs. They will pay costs from one of these two categories. Direct costs of integrated pest management include: education, conducting research, extending information, cultural control, prevention and quarantines. Lost opportunity costs of failing to implement IPM include remedial treatments; repairs; collapse, demolition and rebuilding of structures; loan defaults; negatively affected economy; expenditure of tax dollars; and living without specific breakthroughs. Direct costs are usually visible while lost opportunity costs are often difficult to ascertain. The greatest losses of all are those from lost opportunities. In the case of Formosan subterranean termites, everyone who pays taxes has already paid some costs to manage this insect through the expenditure of tax dollars. Which costs do you choose to pay?