|Last Quarterly Update:||5/6/2013|
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Companies in this industry engage in the elimination of insects and other pests. Major companies include Terminix (owned by ServiceMaster) and Orkin (owned by Rollins) as well as the pest control operations of Swisher International, Rentokil Initial, and EcoLab.
The US pest control services industry includes about 12,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $8 billion. Low growth is forecast for the next two years. Key drivers of demand include new home sales and commercial property occupancy rates.
Demand is driven by home sales and the occupancy of commercial and industrial properties. The profitability of individual companies depends on providing good service. Large companies benefit from brand recognition and economies of scale in advertising, franchising or backoffice operations. Small companies can compete successfully because large companies have no advantage in providing good service. The industry is fragmented: the 50 largest firms generate less than 50 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Pest control firms - also called pest control operators (PCOs) - are in the business of identifying the presence of pests and applying poisonous chemicals to kill them. Firms hire and train employees to detect and identify pests, and to choose and apply chemicals, which typically involves certification.
Companies buy chemicals and other control systems from distributors or directly from the large number of chemical manufacturers. Chemicals are identified as general- or restricted-use, ...
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