Research firm IBISWorld has an updated report on the pest control industry.
Research firm IBISWorld has an updated report on the pest control industry. The report noted that, “With increased income, businesses and consumers will be less likely to opt for cheaper household products from home and garden stores.”
IBISWorld provided the following excerpt.
The rise of bed bugs across the United States has left homeowners and business owners frustrated, but been a boon for the Pest Control industry, which experienced heightened demand for its services. During the five years to 2013, the industry is expected to grow at an annualized rate of 1.9% to record $11.1 billion in revenue, including an increase of 3.3% in 2013. While bed bugs were typically confined to hotels and some residences in the past, the creatures have begun to pop up in unlikely spots, including movie theaters, offices and even clothing stores. “The increased occurrence of these pests has led to substantial demand for pest exterminators and rising service prices,” according to IBISWorld Industry Analyst Stephen Morea. Furthermore, the more insecticide-resistant strain of bed bugs has driven operators to research product innovation to deliver solutions to homeowners and businesses. Heightened demand for bed bug extermination has also caused the number of industry companies to rise. In the five years to 2013, the number of industry enterprises is expected to increase at an annualized rate of 2.2% to 22,533 companies.
Rising demand and service prices have resulted in higher profit margins for pest control companies. “While profit margins declined slightly during the recession due to rising fuel expenses and price-based competition, heightened demand for industry services has favorably affected margins overall and allowed operators to pass on price increases to consumers,” says Morea.
Conditions are expected to further improve over the five years to 2018, with industry revenue forecast to increase. Increased business and consumer spending will drive demand for regular inspections for pests. Furthermore, with increased income, businesses and consumers will be less likely to opt for cheaper household products from home and garden stores. Instead, they will favor more effective and expensive professional exterminating treatments. Housing sales and residential construction are also expected to rise, further supporting demand for fumigation services. Increasing and changing pest populations across the United States will characterize the next five years for the Pest Control industry.
For more information, visit IBISWorld’s Pest Control in the US industry report page. http://www.ibisworld.com