[Industry News] Hurricane Recovery Slow and Uneven

At the late August meeting of the Association of State Pest Control Regulatory Officials (ASPCRO) in New Orleans, attendees were briefed on the status of recovery from the most devastating natural disaster in American history. Following "reminder" slides featuring images still fresh in the collective memories of many in attendance — rooftop boat and helicopter rescues, thousands stranded outside the Superdome, water pouring through breached levees — the author delivered a year-later status report on the city’s recovery and the state of the pest control industry. In large part, the industry’s status reflects that of New Orleans — uneven, sometimes halting, but imbued with pockets of opportunity.

A three-hour "devastation tour" conveyed an impression of the true scale of the damage. From the windows of a bus at street level, and with the water long drained from the city, ASPCRO meeting attendees saw seemingly endless blocks of abandoned, powerless and waterline-stained homes, apartments and businesses surrounding the untouched French Quarter historic district.

Founded on the banks of the Mississippi River more than 300 years ago by the French explorer Bienville, the original city, situated on a high bluff, was spared flood waters from compromised levees. The Omni Royal Orleans hotel served as the convention headquarters and as a reminder of the enduring strength of this unique American city.

THE FUTURE. Despite the obvious challenges of recovery, some positive signs have emerged:

• Building permits issued in Orleans Parish for home repairs and renovations have increased 177 percent in the past six months.

• Housing demolitions by the U.S. Army Corps of Engineers began six months ago. Since that time, "tear-downs" in Orleans and Jefferson parishes jumped from none to 185 and 110, respectively, by August 2006.

Available housing and access to basic services contribute to uncertainty for those considering a return or how to dispose of their property in the area. There are currently more than 4,400 homes in Orleans Parish listed for sale — an increase of 53 percent in six months, indicating that supply is outpacing demand in a severely hard hit area of the city. In St. Bernard Parish, where all but 50 of the parish’s 27,000 structures flooded, home values are down severely.

Considered by many to be a symbol of the slow pace of recovery, another body was discovered as late as this August, 11 months after Hurricane Katrina hit. Firefighters broke through a door of a destroyed New Orleans home filled with debris and furniture and found skeletal remains, bringing the total death toll to 1,577 Louisianans.

TERMITE NEWS. Of particular interest to PCOs was the revelation of Formosan subterranean termites in the seams of flood walls atop earthen levees. First noted five years ago by Dr. Gregg Henderson of the LSU AgCenter, who also spoke at the ASPCRO meeting, termites were found consuming bagasse in several parts of the city. Bagasse is a by-product of sugarcane production and is a material similar to corn husks; it is placed on either side of the rubber gaskets connecting the concrete floodwalls that increase the height of the protective levees. Although they are not considered the culprits in the failures along the intercity canal system, Henderson stated that their presence should be noted and their populations controlled, as foraging tunnels have the potential to weaken the earthen mounds on which the floodwalls sit.

Also of note is the noticeable post-Katrina decline in citywide Formosan termite populations. Henderson reported that the number of alates from light traps in spring and summer revealed a 22 percent increase in Formosan populations in the French Quarter; traps outside the Quarter showed a 75 percent decrease in pre-Katrina population numbers.

PCO NEWS. As for the pest control operators in the New Orleans area, the effects are widespread and apparent:

• 40 percent of PCOs were affected, mostly south of I-10.

• About 50 of the state’s "pre-hurricane" 580 companies have closed, sold or relocated.

• 50 percent of the local Greater New Orleans Pest Control Association members haven’t renewed their memberships.

In the year following the storms, survival and accompanying revenues have been dependant on the location of PCOs’ customer bases. Just like with any real estate issue, being on the "right side" of the levee is paramount. Pest control business in the surrounding areas of Jefferson Parish and the parishes of the north shore of Lake Ponchatrain report stable or increased receipts, while those still serving the low-lying areas of Orleans and St. Bernard parishes report a fraction of pre-hurricane business.

Even with dislocated populations, shallow labor pools and other economic and political obstacles, pest control operators have discovered business opportunities.

With half of the area’s businesses still closed, commercial and residential pest control receipts are down; however, termite retreatments for flooded and renovated structures have increased exponentially.

An Emergency Declaration by Bob Odom, Louisiana commissioner of Agriculture and Forestry, which allowed anti-microbial treatments for mold and mildew under a structural pest control license, motivated some companies to begin sanitation and odor removal service units. Some companies partnered with mold remediation companies to provide Bora-Care/Mold Care (both products of Nisus Corporation) treatments for the mitigation of indoor air quality molds.

One New Orleans-based company, HouseCall, partnered with Sabre Technologies to provide support services for mold fumigation treatments. Employing their patented ClO2 technology, these companies use traditional fumigation methods to remove molds — the same product and technique used to treat offices for anthrax.

Thousands of FEMA trailers have been inspected and treated for common household pests and Formosan subterranean termites. A quarantine issued before Katrina by Odom was intended to prevent the spread of these invasive pests; temporary housing units placed in areas damaged by the hurricanes are threatened by Formosans. The inspect-and-treat protocol allows trailers to be moved outside of infested areas without unwanted guests.

The threat of Formosan termites created a firestorm in the media, which repeated an Internet rumor of infested mulch being sold in home improvement stores. Despite assurances of home and garden retailers, entomologists and regulatory officials that Formosan termites likely would not survive the mulching production process and Katrina debris wasn’t used as a raw material for mulch, many homeowners expressed concern about termites. Even a year after Katrina, retailers still post signs assuring the public about the "safety" of their gardening materials.

FINAL THOUGHTS. Katrina and Rita demonstrated the generosity and compassion of the pest control industry (as I personally experienced with the volunteer work of my four New York PCO "brothers"; see PCTOnline article "New York PCOs Volunteer in Katrina-Affected New Orleans") and the cooperative relationship of the regulatory community in allowing or creating license reciprocity.

The storms also brought out the resilient spirit of Louisiana pest management professionals. Whether they return and reopen or relocate elsewhere in or out of state, they will survive and serve their customers and communities to protect health and property.

The author is vice president of marketing for LIPCA, Baton Rouge, La. LIPCA is an insurance provider dedicated to the pest control industry. He can be reached at afugler@giemedia.com.