MENDHAM, N.J. — The U. S. structural pest control industry generated an estimated $6.593 billion in total service revenue in 2008, down 1.7 percent from the $6.705 billion* measured in 2007. “It’s apparent that the structural pest control industry is not as recession proof as some may have thought,” said Gary Curl, President, SPC, LLC. “Although some pests, like bed bugs, cockroaches, fleas, mice and rats appear to be somewhat recession resistant.”
Continued good revenue growth from commercial pest services could not offset declining residential termite and general pest control service revenue. The dire housing market resulted in a nearly 15 percent decline in the number of post-construction termite treatments performed this past year. The pre-construction termite treatment market was especially hard hit by the more than 40 percent decline in single-family housing starts in 2008.
Total service revenue derived from controlling bed bugs grew nearly one-third over the prior year. In the Northeast region, nearly 10 percent of the total general pest control service revenue was generated from servicing accounts for bed bugs.
Total manufacturer level revenue declined for the second year in a row. Continued weakness in the housing market, coupled with the recession, resulted in another disappointing year for most manufacturers and distributors.
*2007 Termite Renewal Revenue Restated
More than 800 owners or managers of pest control companies were personally interviewed for this study. The market report forecasts pest control service revenue and corresponding pesticide product category sales through 2013. The impact of the weak housing market, the recession, new active ingredients, and the public demand for ‘environmentally friendly’ or ‘green’ products are just a few of the topics analyzed in this report.
Founded in 2000, Specialty Products Consultants, LLC, headquartered in Mendham, New Jersey, is a market research company dedicated exclusively to the professional pesticide industry.