2001 And Beyond

Here it is December and I am more than three weeks past my deadline for this article. I have a good excuse though — I have been waiting to see who is going to be president of the United States. One of the most important issues facing PCOs today may be related to who the next president is and how his administration is run. The reason for this is that George W. Bush and Al Gore have different views on the role of the Environmental Protection Agency, the authority of the states vs. the federal government and the future of pesticides.

While Bush has not made it clear whether or not he is pro industry, Gore made it obvious during the campaign (and during his tenure as vice president) that he feels pesticides are not good. As vice president, he took a leadership role in abolishing pesticides that have been arbitrarily seen as "bad." The question for 2001 is, "What does this mean for the industry?"

POLITICS. Since Bush finally won the election, I think life will pretty much go on as it has the past few years. But it is likely that there will be a slowing of the economy, resulting in reduced new housing starts and fewer people selling their homes. This may cause a reduction in termite pretreatments, wood infestation reports and the work that these reports generate. But ingenuity and creativity flourish in tight markets, creating opportunity for those companies that recognize these trends.

If Al Gore had won the presidency, it is likely that EPA would have received new funding and additional resources for enforcement. The elimination of all carbamates and organophosphates may have occurred on an accelerated timetable. Pesticides that are perceived to hurt the ozone layer will have been looked at with a close eye. National posting and notification regulations may have followed.
Damage caused by pests may have increased due to delays caused by posting and notification. Some companies could have gone out of business due to increased administrative and chemical costs because as fines increase so does the cost of compliance. Some companies will always struggle, but others will recognize opportunity and prosper.

Regardless of the fact that Bush won, however, in four years, I think the pest control industry will be unrecognizable.

ACQUISITIONS. 2001 brings some changes to the acquisition arena. Some of the traditional acquisition giants have dramatically reduced the frequency and prices that they will pay for pest control companies, while some relatively large companies have begun to look for new purchases. Some of these companies are headquartered outside of the United States, but see the opportunity created by the void left behind by the large American companies.

Another new trend is that acquisitions and mergers are being conducted by relatively small companies. These vary from outright purchases, to roll-ups and buying consortiums. People are beginning to think nationally if not globally, facilitated by the relative ease of communications via cellular, digital and Internet methods.

TECHNOLOGIES. Communications and data retrieval and storage will figure large in 2001. Only 20 years ago, there were no faxes, practical cellular phones or affordable personal computers.

Today’s technician can operate a computer, pick up the next day’s service schedule on line or fax inspections into the office from home (or the truck). He or she can speak to a fellow coworker in another state and a supervisor in a third location simultaneously, from a job site via cellular phone, for no additional charge. When a new technology emerges, there is a lag time before it becomes mainstream, but there are always a few pioneers that take a leadership role in development and implementation.

At the National Pest Management Association’s annual conference in Las Vegas, Orkin Pest Control received an award for taking the initiative and outfitting most of their vehicles with Global Positioning Satellite (GPS) systems. This allows the office to pinpoint the exact position of each vehicle on a map displayed on a computer monitor. This, in turn, allows the customer service representatives to improve the response time of service calls, assist disoriented drivers and improve efficiency, much as an air traffic controller would do at an airport. GPS can be accurate to within a few feet and there are programs available now that can allow a service person to inspect an account and record "way points" or locations of pest activity. On follow-up visits, these way points appear on a graphic map of the account on a computer tablet (a laptop computer with a screen where the keyboard should be), allowing the pest hot spots to be monitored and charted by the PCO.

Other technology that seems to have come into its own for the pest control industry is the use of hand-held, palm-sized computers, fitted with barcode readers and industry-specific software designed to replace log reports and, in some cases, daily service paperwork. The cost of these devices has come down to the point where they are becoming affordable for many PCOs. Although these devices have been around for nearly 10 years, improvements in microchip technology and a wide range of competing products make this technology practical for small service companies as well as large.

In keeping with the themes of reducing paperwork and labor while improving efficiency, a number of programs are now available that allow a client to access a PCO’s Web site and, after entering a personal identification number (PIN), access their account. The client can pay invoices, reschedule appointments, communicate with a specific technician, as well as learn about the company and receive an e-newsletter. Technicians, using their own PIN numbers, can receive scheduling updates, communicate with clients and upload information from their palm computers into the office database. Also available to technicians from their company’s Web site, as well as independent Web sites, are online CEUs, industry trade magazines (like PCT), labels and MSDSs.

VEHICLES. 2001 has brought a number of attractive, unique and unusual vehicles from most of the larger manufacturers. Cosmetically, these vehicles can be used to create identity for a service fleet and can be effective marketing tools. A new class of vehicle uniquely suited to our industry has also appeared — SUV/pickup truck hybrids.

As power sprayers have begun to disappear from pest control service vehicles, so has the need for a huge pickup bed. The increasing use of baits, traps and non-chemical control methods has increased the need for cab space. Technological hardware, expensive tools, equipment and the regulatory paperwork that must be toted in each service vehicle have increased the need for secure storage. These new hybrid vehicles meet these needs and are available with a number of accessories and options, allowing a configuration for almost any application.

Alternative fuel vehicles are also available straight from the factory. Arizona recently offered cash incentives for commercial vehicles that were powered by alternate fuels. The goal was to improve air quality and dependence on fossil fuels while motivating companies to acquire what was perceived to be unpopular vehicles. The program was so successful that it broke the bank in Arizona, causing the state to renege on its original offer.

CHEMICALS AND EQUIPMENT. Numerous new chemicals and traps were featured at the recent NPMA conference in Las Vegas. Both EcoSMART and Woodstream are bringing out new environmentally friendly products that enhance the companies’ product lines. The products use essential oils as active ingredients. While this may seem like new technology for most of us, the use of essential oils in pest mitigation is an ancient method and is practiced in many other countries using non-manufactured variants.

EcoSMART is filing for EPA exemption on a new line of products resulting in a promising future for aerosol products. Also in the "what is old is new" department, Rockwell Laboratories has developed a modern, professional version of the pitfall trap. These make excellent environmentally friendly monitoring traps, but may fill up with pests fast requiring frequent inspection. The company has also gone to work on a reusable sticky trap. It has been modified and improved, making it a versatile multi-use trap suitable for fruit fly and stored product pest trapping.

Wide ranges of new baits are also expected in 2001. There are so many options for termite bait stations, baits and software that it is only natural to assume that some unique baiting programs will be developed by end-user pest elimination companies. Mosquito control is looming large on the horizon as a profit center for many pest control companies. With concerns of West Nile Virus in the East and Aedes aegypti carrying dengue in the Southwest and encephalitis most everywhere else, many companies are researching and outfitting themselves for mosquito control work. Check with your state to see if an aquatic insect or public health certification is required.

If you have not attended the NPMA convention in the past, put it in your plans for 2001 (FYI, the convention is in New Orleans, Oct. 28-31). By walking through the exhibit hall, a smart PCO will not only learn about the new products that are available, but will also learn about some of the new products that will be out soon. The NPMA show is also a great opportunity for PCOs to meet with manufacturers face to face and discuss recent product innovations and news.

CONCLUSION. 2001 is going to be an interesting and unpredictable year. Strange weather patterns over the last two years have resulted in bizarre pest outbreaks.

New technologies and a changing political environment will change the face of the industry. Improvements and price reductions in computers and communications will change where and how we work. Mergers and acquisitions will create instant strong competitors in many markets.

Be optimistic, innovative and determined. This is the formula for success in pest management 2001!

Almost every January PCT offers readers a preview of the coming year. Are we usually right? Have we predicted something that was way out in left field? To read previews of years past, go to www.pctonline.com/2001preview. There we’ve collected stories from the past, as well as other information and trends for the new year. Stop by today!