In total, 800 owners or managers of pest control companies were personally interviewed for this study. This is the fifth syndicated market analysis SPC has conducted on the professional pest management industry.
The United States structural pest control industry generated an estimated $6.5 billion in 2004, from residential and commercial pest services and from termite pre-construction treatments, post-construction treatments, and annual renewal fees. This represents an increase of 6.0 percent over the $6.1 billion in revenue measured in SPC’s 2003 survey. The top 100-pest control companies in the industry accounted for more than 57 percent of the total service revenue generated this past year.
According to SPC, the professional pest control industry has grown service revenue at an annualized rate of 5.6 percent over the last four years. “In large part, this growth has been due to the strong housing market and an improving economy,” says Gary Curl, president of SPC. “Additionally, we believe that the PPMA’s (Professional Pest Management Alliance) promotional initiatives have had a positive impact on the industry and have increased awareness of the value of professional pest control services.” “Going forward, over the next two years, we expect continued strong annual growth in service revenue of 6.0 to 6.5 percent,” says Curl.
Overall, most pest control operators surveyed reported good growth in 2004. Not including acquisitions, nearly two-thirds of the respondents said their residential general pest control service revenue increased in 2004 as compared to 2003. More than one-quarter said their business remained the same, and less than 10 percent said their business declined this past year. The Midwest region had the highest percentage of the respondents reporting their residential service revenue stayed the same or declined this past year. In the West region, nearly seven of ten respondents said that their residential service revenue increased this past year.
Commercial pest control service revenue increased for nearly half of the companies surveyed and 42 percent of the respondents said their business remained the same, not counting acquisitions. Nationwide, more than half of the respondents that provide termite treatments said their business increased this past year. The biggest decline in termite service revenue was in the South Central region, where nearly one of five respondents said their business decreased in 2004.
In addition to providing a quantitative assessment of service revenue and pesticide product usage, the study measured key attributes of leading suppliers to the industry. End-users were asked to score leading companies on a scale of 1 to 10 on the following attributes: 1) Technical Support; 2) Knowledgeable Sales Representatives; 3) Commitment to Industry; 4) Service; 5) Product Range; and 6) Price. Overall, pest control operators scored Whitmire Micro-Gen first with an average rating of 8.25. Bayer and Bell Laboratories were virtually tied for second with an average rating of 8.1.
Specialty Products Consultants, LLC, headquartered in Mendham, New Jersey, is a market research and business development consultancy dedicated exclusively to the specialty products industry.