Termites and wood shop walls - paranoia?

My shop is in my basement and I am planning to put up plywood for walls (much of the shop is against a poured concrete wall so I'll have to frame out a wall in front of the concrete as well). Seems like lots of folks do this.
But... our termite guy inspected our house a couple weeks ago and told my wife that we need to get the wood away from the exterior walls in the basement and that we should not use wood shelves down there (I have wooden shelving units against the wall now). I have not talked to the termite guy, but this seems like a complete over kill.
We live in Atlanta (which has serious termite issues), but our house does not have any termite problems. Should I be concerned about putting up the plywood walls? Should I take any precautions as far as treatment before doing it?
Is plywood really any worse than dry wall? (tons of people finish their basements)
Any comments are appreciated. I need to explain to SWMBO why this is not going to be a problem.
YJJim
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YJJim wandered in from the void and babbled something like:

<snip>
I live in Atlanta as well, and have spent the last 3 weeks rebuilding part of our house due to termite and rot damage. Most of the damage occured because of the moron contractor that built this mess (NO flashing, improper roofing, hardboard siding, no vapor barrier, joist space between 1st and 2nd floor completely uninsulated and additionally open to outdoors!), but that is neither here nor there.
As for your question, if the basement has solid walls and floor, and no exposure to the earth, no leaks, and no way for termites to get into the basement to begin with, it's unlikely to be a problem. You can treat the earth surrounding the house with a termite barrier that will generally last 10 years or so. Any finish work involving the basement is going to involve the use of wood products - from the furring strips that the drywall is nailed to, to trim and such - so advice to avoid wood is a silly assertion. Termites can and will build soil tunnels to reach ANY wood they can get to. If you have termites eating your wooden shelves, they are eating your house as well.
So, the solution would appear to be - seal ANY and ALL openings, treat the foundation surrounding the house with a good termiticide, treat the walls and slab with a hydraulic sealer, and insure good drainage around the house to prevent hydrostatic pressure from forcing water through the seams - termites prefer moisture with their wood. Regular inspection is necessary.
Check here for more info:
General Termite Info http://ohioline.osu.edu/hyg-fact/2000/2092.html
Current Pesticide Testing Results http://www.5star-termite.com/ctPersistence.htm
Greg
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Thanks Greg,
That is pretty much what I thought. The previous owner installed sentricon (or whatever it is called) and we have a termite company that checks them (and the house) a couple times a year, so I don't really think I have anything to worry about... or at least no more worry than I would have anyway.
Thanks again, YJJim
Greg G. wrote in message

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YJJim thus spake:

No problemo. Good Luck!
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