[International Update] Not So Different

Over the last few years, the northward move of termites in France and more recently, their arrival into Spain and Italy, was considered to be one consequence of global warming. Another is the concern in Europe about increasing levels of mosquitoes in Northern Europe and the potential this brings for the spread of viral diseases. Will these diseases have the same impact in Europe as they have in North America with West Nile virus? These are some of the new problems that pest management professionals in Europe are learning how to manage in an industry valued at more than $2 billion (U.S. dollars) at the service level, with more than 7,000 pest control service companies employing almost 40,000 Europeans.

SIMILARITIES & DIFFERENCES. There are several similarities and differences between the European and North American pest control markets. The biggest difference may be the inherent challenge of operating throughout Europe, where there are 42 independent countries with their own languages, cultures, and business and legislative practices. It might strike fear into the heart of an American company looking to establish a business in Europe. These issues, however, are manageable if you have the right European partners, many of whom will speak more than one language (if they are Dutch, probably four or five), operate across country borders and are used to operating in such an environment.

That being said, there are probably more similarities between North America and Europe than there are differences. The European market broadly has the same active ingredients and the same formulations, and the market naturally segments into service companies, professional distributors and suppliers. Both U.S. and European markets operate under rigorously managed anti-competition laws and both could be broadly described as maturing markets, unlike the dynamic growth markets that China and India represent today.

One major difference is that Europe’s largest pest control segment is commercial work — not residential — since termite infestations are minimal. Europe’s commercial pest control market is based on four major segments: food and beverage, hotel management, food manufacturing and food retailing. In the European market, the food industry — from suppliers through to supermarkets — have a significant influence on pest control practices and this influence can be predicted to increase further in the future.

IT’S A SMALL WORLD. The promotion and development of the industry cannot be done in isolation. As the industry becomes more international, and information, both positive and negative, moves ever faster, it is important that the European industry continues to communicate better with itself and those who seek to influence its activity. Europe does not have a single major annual industry event of the scale of the National Pest Management Association’s (NPMA) PestWorld.

The larger national associations run events every other year — Eurocido in Germany and Parasitec in France both were held in 2006. Next year, Europe will feature PestEx in London, the most international of all the European events. The European industry keeps up with trends in the international industry in a number of ways. One way is through the wide variety of quality national language magazines, many developed by the national associations. Pest Control News is unique; the magazine has several different language versions. It is also interesting to note that each year more and more Europeans attend the NPMA’s PestWorld and other international events.

During 2006, the European pest management industry developed a new initiative — "The Amsterdam Project" — in which service companies, distributors and suppliers work closely together for the same goal of growing the European industry, raising the level of professionalism and increasing awareness of the industry with legislators and other groups that influence the future of the industry. The leadership for this project came from major international suppliers, including Bayer, BASF, Bell Laboratories, Sorex and Killgerm, working closely with the national industry associations and their confederation known as CEPA. The European industry acknowledges the assistance given by the NPMA in kick-starting this initiative.

If you are visiting PestWorld this month, please take the opportunity to visit the booths of some of the European suppliers and look for badges of the European delegates. Take the opportunity to understand how your colleagues in the European market manage their businesses and be proud that they have come to North America to understand more about the world’s leading market.

The author has more than 20 years experience in the international pest management market. He has worked in senior commercial positions for ICI, Zeneca and Sorex Group and most recently developed Xenex Associates Ltd., an international commercial business services company dedicated to the pest management industry. He can be contacted through his company’s Web site at www.xenexassociates.com or via e-mail at rfryatt@giemedia.com.