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 13,500 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 11 workers, and generates $1.6 million annually.
- The pest control services industry consists of about 13,500 companies that employ about 148,000 workers and generate about $21.5 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
Recent Developments
May 21, 2024 - Growth in Employment, Wages
- Employment by pest control services was 2.3% higher in March 2024 year over year, while wages rose 5.6% to $23.89 per hour, according to data from the Bureau of Labor Statistics. Compared to pre-pandemic levels, employment levels have grown 14% and wages are up 16%. In addition, consumer spending levels showed an upward trend in the first quarter of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- US office vacancy rates reached a 30-year high of 19% in the first quarter of 2024 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s Q1 office report in Facilities Dive. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024. Office occupancy levels are a demand indicator for pest control service companies, which count businesses and commercial property managers as customers.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings were up in April 2024, with a seasonally adjusted 40% of business owners reporting jobs they could not fill. The reading is up three points from March 2024, which had the lowest reading since January 2021. A seasonally adjusted net 12% of small business owners plan to create new jobs over the next three months, up one point since March. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Hiring plans among small businesses once again in April, but open positions remain largely unfilled as owners struggle month after month to find employees. Overall, small businesses are not reporting net gains in employment as wage pressures and inflation keep the labor market tight.”
- Pest control companies will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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