Sam Soto, president of First Rate Solutions, New Windsor, N.Y, wrote the March PCT "My Biggest Mistake" column in which he discussed lessons learned from failing to delegate enough responsibilities.
In the following podcast, Soto further discusses this topic.
The U.S. structural pest control industry generated an estimated $7.213 billion in total service revenue in 2013, a 5.9 percent increase from the $6.815 billion measured in 2012. The top four U.S. service providers, Orkin, Terminix, Ecolab, and Rentokil represented nearly 45 percent of the total industry revenue for the termite and general pest control market segments this past year.
Rodent control service revenue was particularly robust this past year. In the Northeast United States, pest control companies reported that their highest percentage of revenue earned was from controlling mice and rats. We believe “Superstorm Sandy” that hit the East coast in late October of 2012 may have displaced rodents resulting in an increased need for control efforts in the region this past year. Total manufacturer level revenue for rodenticides increased nearly ten percent this past year. Three active ingredients, bromadiolone, difethialone, and brodifacoum, accounted for more than 85 percent of total U.S. rodenticide sales.
Nationwide, 86.5 percent of the respondents said their company treated for bed bugs. Six of ten respondents primarily relied on insecticide treatments to control bed bugs. One in five (19.9%) relied on heat or steam treatments. Service revenue derived from controlling bed bugs increased more than 11 percent from the prior year, bringing the total revenue earned from controlling this pest to nearly $450 million. Single family homes and apartments were the primary leading types of accounts pest control operators treated for bed bugs, followed by hotels and motels.
Nationwide, pest control operators reported good growth in both residential (+4.6%) and commercial (+6.5%) service revenue from the prior year. Total service revenue generated from termite work improved, as well. The latter was somewhat surprising as nationwide, respondents reported a “weaker than normal” termite swarm season this past year. The South Central (TX, LA, OK, AR) region of the U.S. reported the weakest swarm season with nearly two-thirds (65.4%) of the respondents reporting a “much weaker than normal” or “weaker than normal” swarm season. Nevertheless, there was a nearly four percent increase in the number of post-construction termite jobs completed. Improved pricing actions raised the average post-construction job 5.4 percent to $836.04 per treatment this past year. Pre-construction termite treatment revenue increased 8.1 percent on the strength of an 18.5 percent increase in privately owned new housing unit construction “starts.” Nearly 45 percent of all privately owned housing “starts” in the U.S. received a pre-construction termite treatment this past year.
Total manufacturer level revenue increased 5.7 percent this past year, to more than $515 million. After a number of challenging years for suppliers, this brings total manufacturer level sales revenue back to the same level experienced more than 10 years ago (2003).
Nearly nine of ten (85.8%) operators surveyed said they were aware of the EPA’s national initiative which changed the outdoor use directions for Pyrethroid insecticide products. More than half (51.1%) reported that they had stopped power spraying Pyrethroids and switched to using a “backpack” or smaller sprayer. More than one-quarter (28.9%) said they had not been affected yet as they had “stocked up” on older labeled products.
The 2013 season market report is the 14th edition of A Strategic Analysis of the U.S. Structural Pest Control Industry. A total of 800 owners or managers of pest control companies were surveyed for this study. The market report forecasts pest control service revenue through 2015, and pesticide product category sales through 2018. The impact of the commercial and residential real estate market, mosquito and wildlife management services, changes in distribution, and pest control operators’ outlook for 2014 are just a few of the topics analyzed in this year’s report.
LODI, Calif. — Clark Pest Control announced that it has acquired two pest management companies, Paso Robles, Calif.-based Bugz-B-Gone, Inc., and Escondido, Calif.- based Stock Exterminators.
Clark Pest Control will merge the operations of both companies into its Santa Maria and San Diego service centers, respectively.
Both companies had strict qualifications as to what kind of company could purchase their businesses. As Bugz-B-Gone’s Chris Kirk explained: “It must be family-owned, it must have experience, it must be able to do all the things we do, it must be able to respond quickly to our customers’ needs, it must not be a huge company with national reach, because our customers are more than just a number, and it must also treat for termites.”
“Clark Pest Control is a family-owned and operated business,” Stock Exterminators’ Mike Stock said. “They have been in the pest control business for over 60 years, and their staff of professionals perform all phases of pest and termite control. They also provide commercial and agricultural pest control.”
The owners of both companies gave different reasons for selling their businesses to Clark. Chris Kirk of Bugz-B-Gone wanted to concentrate on a new business he and his wife had purchased. “After a few months, we realized that our new company, Contemporary Home Services, was taking up a lot of our time and energy,” he said. “We made a difficult decision to put Bugz-B-Gone up for sale, so that our loyal pest control customers would not be affected by our divided attention, and so that we could concentrate on building our residential and commercial cleaning business.”
Mike and Jeanne Stock of Stock Exterminators just wanted to retire, so they could travel and enjoy life. “We plan on riding one of our motorcycles to Virginia to visit my sister, surfing more, and continuing our work with Project Wildlife,” he said. But before they could do that, they wanted to make sure the business they had built for over 26 years, and the loyal customers they had developed, were in good hands.
Both Bugz-B-Gone and Stock Exterminators embody the type of companies that Clark Pest Control likes to acquire. “They managed to grow their businesses the old-fashioned way, even in a tight economy, by taking good care of their customers,” said Joe Clark, President of Clark Pest Control. “We are excited that our team will continue to provide the customers of both of those companies with the excellent pest control services they already enjoy. We’re also happy for them, because we can offer them a number of other services – termite inspection and control, damage repair work, lawn care, tree and shrub care, bird exclusion, and more.”
|Pictured (l-r) are Orkin USA Field Recruiter Leland Smith, 1SG U.S. Army (RET); ESGR Program Support Technician Lisa Lynette Ward; Rollins Vice President of Human Resources Henry Anthony; and Rollins President and COO John Wilson.|
ATLANTA - Gene Iarocci, president of Orkin of Orkin North America, signed the Employer Support of the Guard and Reserve’s (ESGR) Statement of Support.
The ESGR promotes cooperation and understanding between employers and their National Guard and Reserve employees. By signing the Statement of Support, Orkin pledges the company will act as an advocate for employee participation in the military by supporting the nation’s Guard and Reserve units, their mission, their return home and their return to the workforce.