[Cover Story] What's Next

For residents and business owners along the upper Gulf Coast, it was a thought always in the back of their minds: "What would happen if our low-lying region takes a direct hit from a major hurricane?"

This deep-seeded fear became a tragic reality when Katrina, a Category 4 hurricane, cut a destructive path through Gulf Coast communities in Alabama, Mississippi and Louisiana in late August.

In addition to taking lives and destroying property, Hurricane Katrina left business owners — including many PCOs — with a great deal of uncertainty about the future. How do you rebuild after employees have left and your customer base has been decimated?

Katrina’s impact will be felt industry-wide. The hot, humid weather and varying soil types of the Gulf Coast create heavy pest pressures which, in turn, have helped many pest management firms build profitable businesses. These conditions also provide the U.S. pest control industry with many of its top testing sites.

With so much at stake for so many along the Gulf Coast, PCT scrapped our planned October cover story to instead devote this space to Hurricane Katrina’s impact on the pest control industry. What follows are a series of stories about PCOs, manufacturers, distributors, researchers and other industry stakeholders. There are so many stories to be told; however, because of space limitations, only a portion could be included in the magazine. Visit www.pctonline.com/katrina for additional stories.

The stories on the following pages were written by PCT staffers Brad Harbison, Dan Moreland and Jodi Dorsch, as well as PCT contributor Lisa Lupo.

In this report

• Hurricane Katrina By the Numbers
• A Painful Reminder of Hurricane Camille
• Double Trouble
• PCO Report: Uncertainty Is the Only Certainty
• Industry Helps With Public Health Concerns
• What About the Termites?
• Insuring Against A Natural Disaster
• LIPCA Lends a Helping Hand
• Gulfport Testing Site Spared Worst of Storm’s Wrath
• Pest Management Industry Responds with Donations
• NPMA Helps PCOs Via Fundraising, Job Bank

On the Web

Mosquito and Termite Control Board: Hanging On

Florida PCO Discusses Recovery Process

Life in Mobile Getting Better Each Day

The Warning Signs Were There

NPMA Conventions in New Orleans

Katrina-Affected PCOs Permitted to Work In Georgia

Univar Representative Helps Neighbors Evacuate

Waterbury Companies Establishes Family Independence Hurricane Relief Fund

Hurricane Rita Update

2005 Leadership Winner Survives Storm

Biloxi PCO Recounts Hurricane Katrina’s Destruction

Helpful Insurance Resources

What About the Sentricon Stations in New Orleans?

Sugarland Exterminating Helps a Colleague in Need

From Our Readers: Hurricane Katrina Photo Review

Mosquito Control Training Available for PCOs

------------------------------

Hurricane Katrina By the Numbers

$5.2 billion

New Orleans’ revenue from tourism annually

$1 billion

Tourism revenue generated each year from New Orleans’ Mardi Gras celebrations

10 million

Number of tourists that visit Louisiana annually

1.28 million

Homes and businesses that lost power in Louisiana, Mississippi, Alabama and Florida

1 million

The number of workers displaced by the hurricane

140,000 to 160,000

Number of homes that were flooded and unsalvageable, according to Louisiana officials

140 mph

Katrina’s wind speeds when it made landfall in Louisiana

90,000

Square miles that were devastated by Katrina

8,000

The number of lives lost in the country’s deadliest hurricane in Galveston, Texas, in 1900

80

Percent of New Orleans that was underwater following the breaching of the levees

11 feet

The level of flooding in Mobile, Ala., equaling the record set in 1917

8

The number of major refineries closed by the hurricane

Category 4

The category Katrina was ranked when it made landfall in Louisiana

------------------------------

A Painful Reminder of Hurricane Camille

It started off innocuous enough, a Category 1 hurricane that moved across the Florida Peninsula uprooting trees, causing isolated flooding and entering the Gulf of Mexico as a modest tropical storm. It was nothing to be concerned about, particularly for the hurricane-hardened residents of America’s Gulf Cost, veterans of far more ominous weather events.

But as Hurricane Katrina rapidly gained strength and set its sights on the historic city of New Orleans, Gordon Redd, Jr., owner of Redd Pest Solutions, Gulfport, Miss., began to become concerned. When Katrina, which had grown into a monster Category 4 storm packing winds of 140 miles per hour, jogged to the right on Sunday, Aug. 29 and headed directly for his hometown of Gulfport, Redd’s mind couldn’t help but return to 1969, the year Hurricane Camille made landfall, killing 256 people and decimating his family’s pest control business. It couldn’t happen again? It wouldn’t happen again? Life couldn’t possibly be that unfair, could it?

"I didn’t think I would see a storm comparable to Hurricane Camille again in my lifetime," Redd said shortly after being contacted by PCT magazine following Hurricane Katrina. "I was wrong." The storm plowed through Gulfport, a town of 72,000 people just 75 miles east of New Orleans, on the morning of Aug. 29, destroying hundreds of homes and businesses and disrupting thousands of lives.

Fortunately, Redd was one of the "lucky" ones. None of his family or staff was injured and only one vehicle was destroyed. The roof of the company’s corporate office on Highway 49 was damaged and the business suffered flood damage, but the building and its belongings — including its computer system — were salvageable. "Our operation covers south Mississippi up to Hattiesburg and we also have a Mobile, Ala., office. Both offices are standing," he said. "We’ve had to rip the carpets out of the Gulfport office. We lost one vehicle shed, but the main structures are good."

The same couldn’t be said for Redd’s customers, whose homes in many cases were a total loss. The sheer scope of the destruction of Hurricane Katrina is what stunned Redd, who was only 17 years old when Hurricane Camille devastated the region with 190-mile-per-hour sustained winds and a 22-foot storm surge more than three decades ago. "When Hurricane Camille came through in 1969 we had devastation on the Mississippi Gulf Coast, be we had some reprieve because we had people in neighboring states that could come to our rescue and help us out," he recalls. "But the damage from Hurricane Katrina has been so widespread that it’s just hurt everyone. It caused damage from Louisiana to Alabama."

Despite the devastation, Redd remains thankful, relying on his deep religious beliefs to get him through the second major natural disaster in his lifetime. "The Lord has answered every one of my prayers. I was praying for my staff to be alive and healthy and everyone was. I was praying for my vehicles to be saved because we can’t operate if we don’t have a fleet, and I only lost one vehicle." And two days after the storm, the lights at Redd Pest Solutions were back on and the phones began working. In fact, 45 minutes after electricity was restored Redd Pest Solutions got its first call, a rebirth of sorts for the second-generation family business. "I picked up the phone and a lady says, ‘I’m here from out of town to help my momma clean up her house in Gautier, Miss., and we found termites. Can someone come out and take care of these termites?’ I said, ‘Yes ma’am, we can.’ So, 45 minutes after my phones were up and running again I had a new customer. Isn’t that amazing?"

Redd pointed out that research indicates the pest control industry only services 17 to 20 percent of the currently available market, so there’s ample opportunity to replace those customers that may have been lost as a result of the structural damage caused by Hurricane Katrina. "Of the clientele we have lost because of the storm there’s going to be many more who are going to need our services," he says. "That’s why I say we’re fortunate. We have our office, we have lights, we have phones and we have our health. We’ll get through this, just like we overcame Hurricane Camille." — Dan Moreland

------------------------------

Uncertainty is the Only Certainty

t’s become a familiar routine for longtime Gulf Coast PCOs. When word spread that Hurricane Katrina was taking the shape of a major storm, PCOs put their disaster plans in motion.

In addition to boarding up the office, Bruno Milanese, owner, Biloxi, Miss.-based Bay Pest Control, relocated computers, office equipment and pesticides, and thoroughly cleaned out mixing and material tanks. Service vehicles were relocated inland to higher ground. This routine was repeated by PCOs throughout the region.

HOPE FOR THE BEST. After storm preparations were made, the only thing left to do was hope and pray for the best. On Aug. 29, many Gulf Coast PCOs’ worst fears were realized when Hurricane Katrina made landfall as a Category 4 hurricane with 140 mph winds. While Katrina’s path spared some PCOs’ offices, others were not so fortunate, incurring destruction ranging from minor wind damage to massive flooding. Of greater significance was the impact the storm has had on PCOs’ employees and customer bases — losses from which it could take companies months and years to recover. The grim reality for many PCOs along the Gulf Coast is that their staff and customer base have been decimated, either because these individuals have evacuated and will not be returning or because pest control has suddenly become a low priority in their lives.

Eddie Martin, owner of Terminix Service Co., Metairie, La., said these two factors weigh heavily on his mind. "How many of our customers did we lose literally, and then some of our employees already checked in (and informed us) that they took other jobs and are not coming back to the city," he said. "So, it’s a pretty good economic hit for the pest control industry here. It takes decades to build a good staff and they knew we would be down for three or four weeks. Some of them that have been with me 15 to 20 years say they’re just not coming back here, period."

Martin’s Terminix franchise operates out of four offices and the worst damage was at the Slidell, La., office, which took about 1 foot of water, and the Metairie office, which took enough water that the company had to cut the sheet rock up 4 feet. Fortunately, Martin reports that all of his employees have been accounted for and, at press time, about a dozen of his workers were back on the job.

But just what shape will Martin’s customer base — which is spread throughout New Orleans and outlying areas — be in? Martin said it’s possible that as much as 30 percent of his customers were affected by the storm and subsequent flooding. The impact will be substantial, especially to Martin’s lucrative termite renewal business. "Over a period of 40 years you’ve done all of these termite treatments," Martin said. "The question is how much of your renewal base is literally gone?"

Fischer Environmental Services, Mandeville, La., suffered flood damage to its office, but President Bob Kunst, like Martin, is more concerned about his customer base, which includes coastal Mississippi and Southeast Louisiana.

"St. Tammany Parish, which is my high-end customers, is devastated. I lost all my commercial business along the coast of Mississippi. I lost a number of accounts in Waveland (Miss.) — it no longer exists," Kunst said. "I lost business in Biloxi and Picayunne (both in Mississippi). New Orleans is my heaviest hit area and God knows, it might be six months or it might be six years."

Kunst said he thinks that most of his customers will rebuild, but he expects his business will lose "a couple million dollars."

Ernie Esteve, manager of Harvey, La.-based Billiot Pest Control, said he believes that, "All of our customers in St. Bernard Parish will probably be lost. Probably half to two-thirds in Orleans Parish could be lost, and in Jefferson Parish, I think just a few."

THE RECOVERY PROCESS. So how does a PCO recover in the wake of a disaster such as Katrina? In many ways, it takes the same innovative thinking that has helped these individuals build successful businesses.

At Terminix Service Co., for example, Martin was looking into the possibility of having his technicians assist in the process of disinfecting homes. At press time, however, this had not occurred due to pending environmental and regulatory issues.

Billiot Pest Control Owner Audrey Billiot was paying his employees hourly to do community service. "We went out and bought rakes and garbage bags and anyone who wants to work can," Esteve said. "It’s a way for our employees to bring in some income."

Similarly, Bay Pest Control’s Milanese said his immediate plans were to "assist in whatever way we can, whether it be weatherproofing homes, insect control, sanitation or anything else that we are licensed and capable of performing."

A LOT OF UNKNOWNS. While keeping employees involved with community service and other work provides some semblance of normalcy, PCOs know it will take a lot more for future recovery efforts. Ultimately, it’s going to depend on people and businesses returning and rebuilding. Only time will tell if this happens.

But there are some positive signs. Terminix’s Martin reported that all of his offices were re-opened, complete with electricity and working telephone lines, by mid-September. Esteve returned to his office on Sept. 15 and said the company already received service requests for a baiting job, flea work and a termite renewal.

And for as much heartache and devastation caused by Katrina, some opportunities have arisen. For example, mosquito populations exploded and many rodents were displaced. And while termite populations have been reduced, in no way is the Gulf Coast going to lose its title as America’s "termite belt" (see related story, page 68). The termite market may, however, be reshaped. For example, the termite pre-treatment market may get a "shot in the arm" from residents who will build new homes. There also may be opportunities to provide termite work for customers who bulldoze their structure and then rebuild on the existing slab, said Robert John, owner of J&J Exterminating, Lafayette, La. "Those treatments sitting under water that long will need to be redone. So out of all the negative things going on, this will create some opportunities," John said.

But will PCOs will be able to sustain their businesses long enough to take advantage of this and other rebuilding opportunities? It’s a question on the minds of many Gulf Coast PCOs and one that has no easy answer. — Brad Harbison

------------------------------

Industry Helps With Post Katrina Public Health Concerns

One of the most talked about topics following Hurricane Katrina was the risk to public health. With fuel, chemicals, animals and who knows what else in the standing water, there’s no telling what pests literally may have been lurking around the corner.

In New Orleans, where water was stagnant for weeks, mosquitoes may jump to mind as the No. 1 pest. But they’re not the only concern. "Multiple broods of mosquitoes, flies, rodents and the presence of feral and wild creatures will all present their own unique problems," said Ed Bordes, director of the New Orleans Mosquito & Termite Control Board.

Rodents, and the pests that come with them, are also of concern. "Maybe (the) more complex (problem) will be the rodent population that establishes on the continuously shrinking water perimeter over the next month," Bordes added. "Xenopsylla cheopis (the Oriental rat flea) populations on the rats is not as yet determined."

And after the water is gone, there’s still debris that needs to be disposed of and cleaned up. Jerome Goddard, Mississippi’s state medical entomologist, spent some time in the cities of Gulfport and Waveland, Miss., and said debris lined the streets. Such piles — which are wonderful breeding grounds for flies and rodents — contain food scraps, clothing, pet food and anything else that was once inside structures.

The pest management industry is pitching in to do what it can. "(Orkin is) working with the Centers for Disease Control and Prevention and FEMA to coordinate rodent, pest and mosquito control services in the affected areas," said Orkin spokeswoman Martha Craft. "Orkin’s ongoing collaboration with the CDC has been very helpful in getting vaccination and vector information out to our employees who will provide these important and necessary services throughout the Gulf Coast."

While pest management professionals help with disaster relief, they must be cognizant of the risks. "We are very aware that we must not only provide the aid to the area, but we must also keep our employees safe from the post-flood diseases that threaten all who assist in the disaster recovery," Craft told PCT. — Jodi Dorsch

------------------------------

What About the Termites?

The Gulf Coast, with its heavy termite pressure, has often been referred to as the "termite belt" of America; Terminix’s Eddie Martin calls New Orleans the "buckle" in this belt.

A question on many people’s minds has been: "What will the heavy flooding do to the termite populations in New Orleans?"

PCT contacted University of Georgia Researcher Brian Forschler, who has done extensive research on the subject of drowning termites. In 1995, Forschler and LSU researcher Gregg Henderson published the paper Subterranean Termite Behavioral Reaction to Water and Survival of Inundation: Implications for Field Populations.

Forschler’s laboratory tests involved both native species (Reticulitermes flavipes and Reticulitermes virginicus) as well as Formosan subterranean termites, Coptotermes formosanus. Forschler’s research showed that it took nearly 20 hours to drown 50 percent of the native species and only 11 hours to drown 50 percent of the Formosans. (To drown 90 percent of the populations, it took 30 hours for the native species and 15 hours for the Formosans.)

"We found that the natives survived a lot better under water than the Formosans, which makes sense based on their biology," he said. "Formosans are, evolutionary speaking, on their way to be being a higher termite. They spend a lot of time above ground, in places like the hollows of trees."

When Forschler first started working with termites he studied how they would react to water by setting up laboratory tests in which he placed a termite-infested log in a bucket and dripped water onto it. Forschler was expecting to see termites emerge from the logs, similar to the behavior of ants. To his surprise, the termites entered a state of quiescence. "When they encounter water they just stop and shut down — that is their natural reaction to it," Forschler said. "This (behavior) developed because termites are an animal that lives in the soil and they have to face periods of inundation — when it rains, water moves through the soil profile. Usually that is done within the termite realm in a timely manner."

Thus, in situations where water remains for more than four days, high mortality may occur, Forschler said. Relating this behavior to flooded New Orleans, termites underground as well as termites in water-inundated structures will not seek higher ground and high mortality should be expected, Forschler said.

"We can make a guess that with most of the termites that are in or around the soil line in those flooded areas, you are going to reduce those populations dramatically," Forschler said. "Because of the ones that will be above the water line in buildings, you will have plenty of seed populations that are not going away. These populations will reseed the area, so there will be plenty of pockets of populations that will provide the framework for newer and bigger groups for years to come."

Forschler added that once floodwaters have receded, termites will remain above ground for a day or two before heading back down to the ground. "So, if (a PCO) could get back in there within a day or two he could more easily target the termite population centers above ground." — Brad Harbison

------------------------------

Insuring Against a Natural Disaster

What happens as the thousands of Gulf Coast business owners return home? Are they covered by insurance? How will this disaster affect insurance rates?

According to the Hurricane Insurance Information Center, Hurricane Katrina is the worst natural disaster the insurance industry has ever handled. As far as insurance goes, "the most dangerous thing about a hurricane is that a lot of policies don’t cover flood(s)," said Kristina Phillips, assistant vice president, PestSure, Dallas, Texas. Because flood insurance is not required, many opt to not assume the extra cost. But, if you are not willing to pay the price for a specific insurance (i.e., flood), you will bear the brunt of the damage.

While many knowingly opt to not take extra insurance options, others may not realize that their property insurance does not cover such damages. The first thing to do is to talk with your insurance agent about your policy to ensure you fully understand what it does and doesn’t cover, said Mark Weisburger, Weisburger Insurance. He used all-risk property insurance as an example. Although it is called "all-risk," this means that it "covers everything except that which it does not cover," he said. "And it doesn’t cover floods."

Some insurance companies do not provide flood insurance themselves, but all brokers can write flood policies through the National Flood Insurance Program. The first questions you should ask your agent are: "Do I have all-risk insurance? What does it cover?" The next point should be not a question, but a statement: "Talk to me about the federal flood program," Weisburger said.

Other ways to protect your business from disasters include having backup plans in place. "Far better than insurance is having backups," Weisburger said. One extra insurance option to consider is Electronic Data Processing Coverage, but this is not as important as having duplicate records. Data should be backed up regularly and stored offsite, hand-written records should be copied and kept offsite in a fire-proof vault. If it comes down to it, he said, "Leave the jewelry and take the records. Your business depends on it."

Other extra insurance options include business interruption, extra expense and comprehensive automobile. Additional issues to note: "If you know a hurricane is coming, don’t store all your vehicles on your lot," Phillips said. Also, have an escape plan, and communicate it with employees. Know what you’ll take, where you’ll go, and how you’ll contact and communicate with employees.

As insurance companies continue to see their losses climb, consumers can expect to see insurance rates increase. This will be true particularly in areas at risk for hurricanes and tropical storms — where coverage is expected to not only increase dramatically, but in many cases, be more difficult to get. — Lisa Lupo

------------------------------

Gulfport Testing Site Spared Worst of Storm’s Wrath

GULFPORT, MISS. — When word spread that Gulfport was one of the areas hardest hit by Katrina, many were concerned about the fate of the USDA-Forest Service Harrison Experimental Forest, located about 20 miles north of Gulfport.

The Harrison Forest is one of four USDA testing sites (the others are in Florida, South Carolina and Arizona) that is relied upon for unbiased research on the effectiveness of a wide range of termite control products.

Larry Lott, superintendent of the Harrison site, told PCT that wind damage caused 60 to 70 percent of the trees on the site to be blown over, but no flooding occurred despite nearly 8 inches of rain. Lott says the site drains well due to its elevation and sandy soil.

"I don’t think (the Forest Service) will lose a lot. I saw one sample that was uprooted," Lott says. "There are some trees that have blown over and are across the tops of the plots, but I think the plots will be OK once the trees are removed."

Dr. Terry Wagner, project leader of the USDA-Forest Service Wood Products Insect Research Unit, said the Forest Service gathered all of its 2005 data from the Harrison site in June.

At press time, Wagner had not been to the Harrison site post-Katrina, but based on reports he’s received, he’s optimistic about the condition of most of the plots. "I anticipate that given the magnitude of the storm we probably lost some of the individual plots, but during a five-year period it is not necessarily uncommon to lose a plot or two," he told PCT. "Of course, it’s not desirable for registration purposes to lose plots because testing requires 10 replicates per concentration per product and per test method."

The Environmental Protection Agency uses test results from the Harrison site — as well as three other sites — and weighs the efficacy data relative to environmental and toxicological data that are also required for registration, Wagner said. So if, for example, 1 out of 10 of a registrant’s plots is damaged at the Harrison site, EPA most likely has enough data from the other existing Harrison plots, plus data from the other sites, to evaluate a product.

"The worst-case scenario is that we lose five plots of a concentration that is targeted for registration, leaving us with just five replicates, but I really don’t anticipate that happening," Wagner said. — Brad Harbison

------------------------------

LIPCA LENDS A HELPING HAND
LIPCA, based in Baton Rouge, La., is an insurance provider entirely dedicated to the pest control industry. The LIPCA Web site, www.lipca.com, features a message board, links to agencies offering assistance, and other ways to share information and help following Hurricane Katrina. “In the aftermath of Hurricane Katrina, communication with Louisiana pest control operators was very difficult,” said Allen Fugler, Jr., LIPCA vice president of marketing. “We have now established an Internet-based means of posting notices and resources for PCOs impacted by the storm.”

------------------------------

Pest Management Industry Responds With Donations

The pest management industry by its very nature helps people in need. And whether those people in need are homeowners suffering from a termite infestation or displaced PCOs from the Gulf Coast, the pest management industry is there to offer assistance.

In the days following Hurricane Katrina, the industry responded by donating money and materials. Below is a review of some of the industry’s contributions as of press time (information about other efforts are available online):

• Anderson Pest Control, Northbrook, Ill., has committed to donate $10,000 to the Red Cross for Katrina relief efforts. Anderson pledged $5,000 up front and will match co-workers’ contributions dollar for dollar for an additional $5,000.

• BASF will donate $1 million to agencies supporting Hurricane Katrina relief and recovery efforts in the company’s site communities in Louisiana, Mississippi, Alabama and Texas. In addition to direct cash donations, the company has established the BASF Katrina Relief Fund with the Baton Rouge Area Foundation to accept employee and retiree contributions to aid those affected by Hurricane Katrina, primarily in Ascension Parish, where BASF’s Geismar, La., site is located.

• Bayer will provide $2 million in financial contributions and product donations to aid victims of Hurricane Katrina. As part of this effort, Bayer employees may make personal donations that will be matched, dollar for dollar, by the Bayer Foundation. All financial donations will be directed to the American Red Cross.

• Michael Beckers, executive vice president of Certified Pest Control Operators of Florida, said the association will accept donations from its members for distribution to the Louisiana Pest Management Association.

• Dow, which has 7,000 employees at six sites throughout Louisiana, will contribute $3 million to hurricane relief efforts. The donation will consist of: $1 million in an immediate cash donation to the American Red Cross; $1 million match to employee and retiree donations to the American Red Cross; and, $1 million in products and technology donations for the longer term reconstruction effort.

• Forshaw Distribution has donated products to those involved in Hurricane Katrina recovery efforts. Forshaw has donated several hundred Dynamo AM/FM flashlight-radios with built-in generator cranks to the American Red Cross. Forshaw says it is planning future Katrina relief efforts based on the areas of most critical need. These may include rodent control or mosquito abatement and possibly mold, the company said.

• The New Jersey Pest Management Association made a donation in the amount of $5,000 to the NPMA Hurricane Relief Fund.

• On Sept. 6, Paul Alley Jr., age 11, son of Paul and Amy Alley, owners of the Pestmaster Services Franchises for New York and Savannah, Ga., set up a lemonade stand in Kingston, N.Y., to help raise money for Hurricane Katrina’s victims. His parents told Paul Jr. the company would match any money that he was able to raise. He raised $350 in just more than two hours; Pestmaster made a donation of $700 to the American Red Cross.

• Presto-X-Company, Omaha, Neb., pledged to match all funds donated by the company’s associates.

• Syngenta Professional Products teamed with distributors Univar USA and Oldham Chemicals Company to donate 5,000 Multiplex rodent baiting systems to the New Orleans area to help combat rodents that have surfaced as a result of high waters. To stock these stations, Syngenta donated 10,000 pounds of Talon G rodenticide. Local pest management professionals were expected to install the stations after the Katrina flood waters receded. — Jodi Dorsch