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ABOUT THIS YEAR’S LIST PCT’s seventh annual Top 100 list names the pest management industry’s 100 largest pest management firms by revenue. This list was compiled by the editorial staff of PCT magazine. Certain companies are absent because they elected not to disclose their 2007 revenues or PCT was unable to discern their revenues through other means. A few notes about this year’s list:
The articles that accompany this list were written by Anne Nagro, Lisa Jo Lupo and the PCT magazine editorial staff. Nagro and Lupo are contributing writers to PCT. CLICK HERE to view this year's Top 100 list. PCT made every effort to identify and contact companies that should be included in the list. If your company should (or if you know of a company that should) be listed, contact Jodi Dorsch at jdorsch@giemedia.com. |
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Growth in a Down Market
Despite tough economic times, Top 100 firms continue to grow through savvy business tactics and a focus on continuous improvement. How do they do it?
The economy is in the dumps, but you’d never know it by looking at the pest management industry. The majority of companies ranked in PCT's Top 100 saw revenues increase in 2007 and expect the positive growth to continue this year. How do they do it?
COMMERCIAL, REGIONAL MARKETS. While residential markets felt the squeeze, commercial and industrial business proved a winner for many professionals.
“The commercial side has not slowed down at all,” said Gregory Pest Solutions President Ben Walker, Greenville, S.C., who saw a 10 percent jump in revenue last year. “That’s where our concentration has been.”
Commercial work “was probably the strongest segment of our business,” said Modern Pest Services CEO Scott Stevenson, Brunswick, Maine.
A beefed up commercial and technical department helped Viking Termite & Pest Control in Bound Brook, N.J., differentiate itself from competitors, which was especially important in a challenging year like 2007, said President Ed Bradbury.
In Canada, where the commercial sector accounts for 80 percent of pest management, a housing-driven economy had little affect on business, said Abell Pest Control President John Abell, Etobicoke, Ontario, whose firm saw close to a 13-percent revenue jump.
The U.S. did have some economic bright spots. “Central Texas has continued to grow and economically prosper,” said Bobby Jenkins, president of ABC Pest & Lawn Services, Austin. “I’m very grateful we had reasonably good economic conditions down here.”
Roy Richardson, president of Royal Pest Management, New Castle, Del., shared the sentiment. In greater Baltimore and Philadelphia, gas prices were not as high as in other parts of the country, and housing and job markets remained strong. “The economy in this particular area is really not so bad.”
It does help to have a recession-proof service offering, said Critter Control CEO Kevin Clark, Traverse City, Mich. “Fortunately the animals don’t wake up reading the doom and gloom in the newspaper. They just continue damaging and infesting homes and property.” Compared to insects, animals often are perceived as a bigger threat by homeowners, and development in rural areas continues to set the stage for conflict, Clark added.
EXPANDING MARKETS, SERVICES. Firms with diversified services also fared well. Abell Pest Control began offering pest control and food safety sciences consulting. These non-traditional services “add value-added revenue to an existing client base,” said Abell. The firm took “a very aggressive marketing sales posture” to grow market share, and embarked on a major drive into the residential sector, which resulted in a “substantial increase” in revenue.
Critter Control expanded its preventive services with installations of chimney caps, insulation and gutter guards. “We continue to find ways to expand the brand and the services we offer,” said Clark.
Green pest management was a popular new offering. Not only did the service draw in new customers, but many existing customers upgraded to the program, said B&B Exterminating President Jessica Miner Killian, Jacksonville, Fla. Meanwhile, Modern Pest Services made its residential Home Care Program “greener,” and also developed a quarterly residential tick program.
Some companies even bucked the downward termite trend with great success. Gregory Pest Solutions expanded the reach of its post-construction termite offerings from a few branches to branches in five states. And David Royce, owner of Moxie Pest Control, Corona, Calif., started a termite department from scratch. Targeting only its current pest control customers, the firm pulled in $1.4 million in termite work last year.
On the flip side, Vulcan Termite & Pest Control, Pelham, Ala., focused on selling pest control to its existing 13,000 termite customers and increased pest control revenue 25 percent, said General Manager Fred Smith. Known as a termite company for 40 years, Vulcan combined its pest and termite operations last year. “The termite side is experiencing those economic difficulties…so pest control is where we feel we can step in and get a lot of good positive, smart growth,” said Smith.
Fumigation was golden for Royal Pest Management in 2007. Its new 18-acre off-port fumigation site in Norfolk, Va., “was profitable in the first six months,” said Richardson. “It’s beaten all expectations.”
Rodent exclusion was “an incredible source of new revenue” for ABC Pest & Lawn Services last year, said Jenkins. “That’s accounted for a lot of our residenti
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