[View Point] 100 Bright Spots

The staff of PCT magazine is proud to present PCT’s annual Top 100 list, which lists the professional pest management industry’s 100 largest firms by 2008 revenues (see page 35). At times the compilation of this list is fun, at times frustrating, but in the end it’s with a sense of pride that we publish all of the information we’ve worked so hard to assemble.

“The Top 100 list is an important thing you do,” an industry supplier told me recently. And based on the number of “Where am I on the list?” “Did I make it on the list?” and “Can I get an advance copy of the list?” calls we receive we know it’s an important list for the industry. (The answer to the “advance copy” question is no, by the way.) Many company presidents and owners have told us how much they analyze the data here — comparing their revenues, commercial vs. residential breakdowns and growth percentages to those of their peers — while others have told us they review the list “for those that may be looking to sell.”

Some companies are overlooked (unintentionally) but our hope is that the owners, managers and employees of the companies that are on the list consider it an honor. It takes hard work by a lot of people to control pests in your customers’ homes and businesses. And to achieve the volume of clients and growth numbers reported here takes dedication and a drive to succeed. And for that, these companies should be commended.

We’d like to extend a special thank you to those firms that — in these tough economic times — were honest and open enough with themselves (and the rest of the industry) to report no change in revenue (or a decrease). It would have been easy to ignore our requests for information and we appreciate your cooperation.

So what conclusions can we draw from reviewing the data in this year’s list? For one, there was a shakeup at the top. Companies six through 11 have shifted spots (see page 38). Additionally, although M&A activity has slowed in the past six months, there are several large firms that aren’t on this list this year because they were purchased in the prior 18 months. (I think a return to such acquisition activity will occur later this year.)

In compiling PCT’s annual Top 100 list, there are lots of trends that appear to be occurring but we can’t be sure because we’re taking a “snapshot” of the industry. It takes a lot of time and a lot of money to do the research needed to draw conclusions about the current state of affairs of professional pest management. We talk to 100+ firms for this issue; Gary Curl and his staff at Specialty Products Consultants, Mendham, N.J., interview more than 800 owners or managers of pest control companies as part of their “Strategic Analysis Of The U. S. Structural Pest Control Industry — The 2008 Season” report.

According to a recent press release from Curl, the U.S. structural pest control industry generated an estimated $6.593 billion in service revenue in 2008, down 1.7 percent from 2007. “Continued good revenue growth from commercial pest services could not offset declining residential termite and general pest control service revenue,” Curl reported. “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.”

But even though revenues are down across the entire industry, there are new companies — with new customers and new revenues — popping up all the time. Such is the entrepreneurial spirit of our industry. If a technician is laid off, it often doesn’t take long before he decides to step out on his own. And one day, that company just may crack PCT’s Top 100. We’re waiting...

One note about this year’s list: Be sure to visit www.pctonline.com for an interactive map of the firms on the list. There you can see the location of all Top 100 firms, as well as the data associated with each and a link to companies’ Web sites. We hope you enjoy this digital enhancement! As always, we’re trying to come up with new ways of making the products the PCT Media Group brings to you more useful. Here’s hoping this map is one of them.