Pest Control Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 13,100 pest control services in the US exterminate and control the presence of unwanted creatures, such as insects, rodents, or other small animals. Companies may specialize in residential or non-residential services. Over 70% of industry revenue comes from residential services. Providers may also specialize in a particular industry, such as food manufacturing or health care.

Hazardous Substances

Pest control often involves the application of toxic chemicals that have the potential to harm humans, pets, plants, or the environment.

Government Regulation

Because pest control involves toxic substances, the EPA and state governments regulate various elements of operations, including licensing, record keeping, standards of application, training, and product registration.

Industry size & Structure

The average pest control services provider operates out of a single location, employs 10 workers, and generates $1.5 million annually.

    • The pest control services industry consists of about 13,100 companies that employ about 125,000 workers and generate about $20 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom; the top four firms account for about 27% of industry sales. The majority of pest control service providers are small, independent companies or franchises.
    • Large companies include Rollins (Orkin) and Rentokil (Terminix).
                                  Industry Forecast
                                  Pest Control Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 14, 2023 - Growth Ahead for Industry
                                  • Sales for the US pest control services industry are projected to rise at a nearly 6% CAGR from 2022 to 2027, reflecting a recovery in spending on consumer services, according to a recent Inforum forecast. This rate is faster than the projected growth of the overall economy. The forecast follows uneven sales growth during the pandemic in 2020 (3%), 2021 (13.1%), and 2022 (8.8%).
                                  • Labor quality and inflation were tied as the top business problems for small business owners, each called out by 23% of owners in a survey by the National Federation of Independent Business (NFIB). The NFIB’s Small Business Optimism Index fell half of a point in September 2023 to 90.8, marking the 21st consecutive month below the 49-year average of 98. According to NFIB Chief Economist Bill Dunkelberg, “Owners remain pessimistic about future business conditions, which has contributed to the low optimism they have regarding the economy. Sales growth among small businesses have slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief.” Small business owners are still encountering historically high job opening levels, with a seasonally adjusted 43% of owners reporting job openings they could not fill in the current period. Nearly 60% of owners reported making capital outlays in the past six months, with 41% spending on new equipment, 22% acquiring vehicles, and 17% improving or expanding facilities.
                                  • The National Pest Management Association (NPMA) issued a mosquito pressure warning for Florida as part of its bi-annual Vector Sectors list of the top 10 US states at greatest risk for increased pest pressure. Above-average temperatures and precipitation have created ideal breeding conditions for mosquitoes in Florida. The report noted a health alert from the Centers for Disease Control and Prevention related to locally acquired malaria infections in the US. Ticks and fly populations are also expected to rise due to the warm and wet weather. The list includes Boston, Dallas, Denver, Hartford, Kansas City, Indianapolis, Providence, Portland, and St. Louis. According to NPMA’s Dr. Jim Fredericks, “In issuing this seasonal forecast, we hope to shed light on the correlation between weather patterns and pest pressures, and give Americans the tools they need to safeguard themselves and their families from the health risks posed by disease-carrying pests.”
                                  • A recent survey of readers by Pest Control Technology showed 45% described rodent activity as slightly higher during the past 12 months. Twenty-seven percent said activity was close to normal, 16% said it was much higher than normal, and 12% said it was less than normal. Some pest control managers say the boost in rodent control business can be attributed to younger generations being more of a "do-it-for-me" generation. "People here have just started to recognize professional rodent control services. I think it is a generational shift, from Boomers, who were almost exclusively do-it-yourselfers to the millennial generation that will pay you to do it," said Jeff Wells, a VP at Advance Termite & Pest Control in Hutchinson, Kansas. The higher levels of rodent activity were attributed to extreme weather conditions.
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