Gordon Redd Discusses Post-Katrina Recovery

Editor’s note: PCT recently caught up with Gordon Redd, president of Gulfport, Miss.-based Redd Pest Solutions. When PCT last talked to Redd it was just days after South Mississippi had been devastated by Hurricane Katrina. The following is an update on Redd and his company.

PCT: How has your customer base changed since Katrina?
Gordon Redd: At this point in time we believe there is a 15% reduction in what we call core business that existed before hurricane Katrina. These are customers who loss most if not all of their residences or businesses. The percent was greater than this just following the hurricane and has gradually improved month to month thereafter. We have many customers who have asked us to put them on hold until they rebuild or move to another building. However, our August figures are above 2005 at the same time by a little more 15%. We have acquired many new customers and the existing customers are coming back. New sales to to-date are up 53.5 percent. The sales volume has really been a blessing. Since we are not big in the pre-treat business, this growth has primarily been in the area of residential, commercial and industrial pest management and subterranean termite control on existing buildings.

PCT: What type of pest problems are you experiencing?
Redd: Just as it did to the communities along the Gulf Coast, the hurricane devastated and scattered nature too. We have seen the influx of many pests moving into homes and businesses since the storm. Ants, smokeybrown cockroaches, flying pests and especially spiders have really been a problem this year. We have also seen many occurrences of brown widow spiders. The Asian cockroach has been a real pest in some of our commercial and industrial accounts.

PCT: How is the labor market in your area?
Redd: For several months it was almost impossible to acquire new and qualified people. It was surprising to see the unemployment rate so high in South Mississippi, yet it seemed like everywhere you looked, you would see “Now Hiring” signs all over the Gulf Coast. We had signs out too. There were thousands of people out of work, but due to many reasons, one being subsidies, they were not eagerly seeking employment. Most of that environment has now changed and the opportunity to acquire employees is getting better. We believe we have a well qualified and dedicated staff of people and since we have had a good benefits package for our employees, we feel this will give them the confidence to stay and grow with us.

PCT: How has your service mix changed?
Redd: The service mix is very close to what we have always had in our company. As I said earlier, since the pretreat market has been so competitive, we have tried to focus on all the other opportunities to serve clients. However, we do feel a great resurgence is going to occur during the next few years. Construction is going to increase to levels we have never seen before along the Mississippi Gulf Coast. Therefore, demand for pretreats on new construction will provide Redd opportunities to serve this market.

PCT: What lessons did you take away from the storm that you can share with other PCOs?
Redd: Redd Pest Solutions did not have a disaster plan or policy in place before the storm. This is one thing we are working on now. In the future, all employees will know what is expected of them before, during and immediately following another disaster. Let’s hope we don’t have to use it. Another area we are working on is a communication. When Katrina hit some people stayed while others evacuated. We were not able to locate everyone. So, we are working on having a central communications headquarters north of the coast where employees can call in and report their condition and get information as to what is expected in the following days. Also, Redd has always had recent back-ups to its computer system. However, in the future back-ups will be made to an area north of the Gulf Coast in the event the entire building in Gulfport, or other Redd offices are completely destroyed. We saved all but one of our service vehicles. This worked well because we did not have all our vehicles in one location. In the future we will do as we have done in the past and move our vehicles to three different areas, one-third in each area. This minimizes losses and has saved our vehicles many times in the past.

PCT: How do you see South Mississippi being reshaped in the future?
Redd: The future is bright in South Mississippi. There is going to be a resurgence of growth that will make South Mississippi better than we ever expected. We have the commitment of local officials, state government, national government and professional planners who are dedicated to making South Mississippi more beautiful than ever before. Therefore, I believe the pest management industry is going to progress extremely well.

PCT: Anything else?
Redd: I serve on the board of Coast Electric Power Association. Coast is an electrical cooperative whose customers are actually members of the association. Before Katrina, Coast served about 70,000 meters in South Mississippi. We lost over 30,000 power poles and power was down almost entirely through the network. Within three weeks following Katrina, we restored power to every member who was able to accept electrical power. However, we were still not able to give power to approximately 15,000 members who were still down. Today, we have had so many new installs for ‘06 that we have surpassed any of the previous 70 years Coast has been in existence. Today, we are now serving over 70,000 meters again. It took the help of over 3,000 utility workers from all around the country to get power restored so quickly. The power crew that restored the power at my house was from New Hampshire. I share this because I believe there are many stories like Coast Electric all along South Mississippi. Many people are bouncing back and growth and hope is happening.