July 1997 News

SEARS PLANS FOR 500% GROWTH IN FIVE YEARS
ORLANDO, Fla. — The newly formed subsidiary of Sears Roebuck and Co., Sears Termite and Pest Control Inc., has aggressive plans for growth in the pest control market, according to the company’s president, Charles Steinmetz.

Steinmetz revealed the new company’s plans for growth at PCT’s Dialogue ’97 Conference, held this April in Atlanta, where he was a keynote speaker.

The company, formerly known as All America Termite and Pest Control, plans to grow by 500% in the next five years, Steinmetz said, increasing its annual revenues to $500 million. It will achieve that growth through expansion of existing markets, licensing arrangements in new markets, and by acquisitions.

"We have a very aggressive growth plan to open a bunch of new markets rapidly over the next five years," Steinmetz said. "Sears has challenged us to make our business five times larger."

The growth plan is part of a dynamic strategic plan for Sears Roebuck, which involves more than pest control. In fact, it’s part of an effort, said Steinmetz, in which Sears hopes to become the No. 1 provider of home services.

"Sears is also very interested in carpet cleaning, security systems, siding, roofing, windows and other things the homeowner buys," said Steinmetz. He explained the home services industry is now a $160 billion industry, of which Sears, already the largest provider, now has revenues of $3 billion and hopes to increase that amount to $10 billion in the next five years. By purchasing All America, Steinmetz said, Sears is better equipped to learn about how licensed businesses operate, thereby helping Sears market the other home services more effectively.

The aggressive growth plan calls for increased market coverage provided by current licensees, new licensees, and by corporate acquisitions, Steinmetz said. Much of the business growth is expected to occur in new markets that are contiguous to existing Sears Pest Control locations. Furthermore, the company is targeting growth in many areas in which there currently are no Sears operations, such as the Midwest and California.

Steinmetz is best known for pioneering the hugely successful "once-a-year pest elimination service" which utilizes strategically placed "sub-surface," attractant baits to control ants, roaches and occasional invaders, instead of contact insecticides or barrier sprays.

Based on the philosophy of providing added value to customers, the innovative program, established in 1982, helped spur the trend away from routine baseboard spraying. Steinmetz’ firm, with 92 branch offices located in the Southeast and Arizona, was already the third largest termite and pest control company in the United States, with annual revenues of $100 million, when it was purchased by Sears. The deal was finalized in March.

Today, Sears Termite and Pest Control has 100 company-owned locations in nine Southeastern states and Arizona, as well as close to 30 licensed operations located in Texas, the Pacific Northwest, the Mid-Atlantic region, the Northeast, eastern Tennessee, Oklahoma, Hawaii, and Puerto Rico.

"Through this network we want to grow and expand our business within those particular markets," said Steinmetz, "plus we have all the rest of the country where we don’t have any customers." Steinmetz added the familiarity and credibility of the Sears name will also assist in the expansion of new pest control businesses acquired or opened by Sears.

As president of Sears Termite and Pest Control, Steinmetz now holds responsibility for all of Sears’ pest control operations, including those licensed but not owned by the retail conglomerate. Previously, each licensed operation was handled more autonomously. "Before there was a licensing agreement, but there weren’t any specific instructions on the technical side of our business," said Steinmetz. "Our business thinking has really converted to more of a franchising operation than it was before." Existing licensees now report directly to Steinmetz and are being trained to provide the type of services offered by All America.

Although All America was already a formidable competitor in the markets it serviced, the resources Sears brings to the industry make the network of pest control companies an even more influential player, Steinmetz notes, which will be to the industry’s benefit.

"The industry has never had a $38 billion dollar player in it, but it does now," he said. "What we’ll do is challenge [other pest control companies] to improve quality to a whole new level, and I think that’s very healthy for the industry."

DIALOGUE ’98 IN SAN DIEGO SET FOR FEBRUARY
CLEVELAND — The dates for the 1998 PCT Dialogue Business & Technology Conference have been announced. The three-day conference will be held Feb. 1-4, 1998, at the San Diego Hilton Beach & Tennis Resort in San Diego, Calif.

The conference will feature more than 30 business and technical topics of importance to pest control professionals. The Sunday-to-Wednesday program will also include a keynote address and question-and-answer session on Sunday evening with a leading industry figure, breakfast general sessions focusing on cutting edge management issues, and numerous opportunities for networking.

"We feel moving PCT Dialogue to early February will give more PCOs the opportunity to attend the conference without taking them out of the office during their busy season," said Jeff Fenner, conference director for PCT Dialogue. "The combination of quality educational sessions and speakers, affordable registration and hotel rates, and the bonus of being in San Diego in the dead of winter make PCT Dialogue an attractive event for PCOs."

PCT Dialogue attendees will also have the chance to enjoy a special PCT Dialogue Welcome Reception, display their golf skills in the 2nd Annual PCT Tournament of Champions Golf Outing, and visit the world-famous San Diego Zoo.

The 1997 PCT Dialogue Business & Technology Conference drew more than 250 industry professionals to Atlanta, Ga., in late April.

Complete registration information will be available in October, and interested PCOs can call Pest Control Technology’s Fran Franzak at 800/456-0707.

EPA ASKS REGISTRANTS TO PRIORITIZE APPLICATIONS
WASHINGTON — The U.S. Environmental Protection Agency issued a Pesticide Registration notice (PR 97-2) to the registrants of conventional pesticide products, requesting that registrants prioritize their top five pesticide registration applications. The rankings were to be completed by the end of June.

The notice requested that the ranking of the five priority applications be consistent with the goals and policies of the Office of Pesticide Programs (OPP), and includes applications for new chemical, new use, experimental use permits, non-fast track amendments, and inert ingredient registration actions for conventional pesticides.

The goals of the effort are to ensure and increase safety in the nation’s food supply, to reduce the potential risks of pesticides to human health, to reduce the potential risks to the environment, to increase the use of integrated pest management practices, and to reduce trade barriers. The effort is also designed to improve pest resistance management practices.

To meet these goals, the OPP will prioritize registration actions in the following order: methyl bromide alternatives, reduced risk candidates, vulnerable crops as identified by the EPA and the U.S. Department of Agriculture, minor use pesticides, non-minor use priorities, and policy differences between the United States and other countries that may hinder trade.

A copy of the 11-page notice is available from the OPP’s communication office, and can be requested by calling the office at 703/305-5017.

CLEVELAND ASSOCIATION HONORS ALONSO
CLEVELAND — Lonnie Alonso, president of Columbus Pest Control and a past president of the Ohio Pest Control Association, was presented the Tom Evans Award of Recognition in May during the second annual awards ceremony of the Greater Cleveland Pest Control Association. Alonso was given the award in recognition of his commitment and involvement in the pest control industry. "He (Alonso) spends a big part of his time working for the benefit of the industry," said former GCPCA president Rich Kozlovich.

Alonso called the honor a "great suprise," and credited his father for instilling in him dedication and strong leadership skills. "I’ve always dedicated myself to the industry," Alonso said.

The award was created in honor of Tom Evans, president of Southern Mill Creek Products. Evans has been credited with "resuscitating" the GCPCA after member involvement dwindled a few years ago. The Tom Evans Award recognizes similarly dedicated individuals who have an "unselfish commitment" to the pest control industry.

In other meeting proceedings, Dave Bennett, president-elect of the association, along with the entire new GCPCA staff, was sworn in for the 1997-98 year.

DOW ACQUIRES LILLY INTEREST IN DOWELANCO
MIDLAND, Mich. — The Dow Chemical Company announced recently that it will acquire Eli Lilly and Company’s 40-percent stake in DowElanco, for $900 million plus undistributed earnings, as a result of Lilly’s exercise of its option to sell its interest. This will make Dow the sole owner of DowElanco.

Darlene MacKinnon, a communications officer with Dow, said DowElanco may change its name as a result of the sale, but a new name has not yet been identified.

DowElanco, a global agricultural products joint venture, was formed in 1989 with Lilly holding a 40-percent interest and Dow owning the remaining 60 percent. The venture combined the plant science businesses of both parent companies, as well as Dow’s specialty pest management business. Since the formation of the joint venture, DowElanco has experienced strong growth and has conducted aggressive research and development projects, according to a company statement.

"We are excited about the tremendous value opportunities that lie ahead of us, said William S. Stavropoulos, president and chief executive officer of Dow Chemical. "This acquisition is part of our value growth strategy to increase investment in performance businesses."

DowElanco, with sales of $2 billion, is one of the world’s largest research-based agricultural companies, and its new sole owner, Dow Chemical, is the world’s fifth largest chemical company, with annual sales of more than $20 billion, and 40,300 employees in 157 countries.

PESTICIDE NETWORK ANSWERS 22,000 CALLS A YEAR
CORVALLIS, Oreg. — Since shifting its base of operations to Oregon State University in Corvallis, Oreg., in 1995, the National Pesticide Telecommunications Network (NPTN) has been receiving up to 22,000 calls a year from homeowners looking for information about pesticides being used in and around their home.

The NPTN is a toll-free service sponsored by Oregon State and the U.S. Environmental Protection Agency that provides objective, science-based information about a wide variety of pesticide-related subjects, said Peggy Vogue, assistant director of NPTN.

The network consists of three open telephone lines, and employs seven permanent representatives, all of whom have master’s degrees in public health, environmental chemistry, toxicology or related fields. The representatives receive as many as 130 calls a day during the peak insect season, Vogue said, answering questions regarding such things as the use of pesticides by pregnant women or around small children, or the length of time a pesticide may be kept.

According to an NPTN brochure, the network is a source of factual, chemical, health and environmental information about the more than 600 pesticide active ingredients incorporated into more than 50,000 different products registered for use in the United States since 1947.

While the majority of individuals calling the network are homeowners, Vogue said, PCOs have also called the network on behalf of their customers, or have recommended that their customers call the service for an unbiased confirmation.

The network uses a variety of sources, and maintains a Web site with links to many other organizations, such as the EPA’s Office of Pesticide Programs, and pesticide manufacturers. The NPTN’s toll-free number is 800/858-7378, and the internet address is http://ace.orst.edu/info/nptn/.

offered new Habitat Homeowners a solution to getting rid of "unwelcome" visitors — insects and weeds — while presenting them with a special gift to help celebrate their new lives as homeowners.

The baskets contained an assortment of AgrEvo EH products for controlling home and patio insects, wasps, hornets and yellow jackets, as well as weed, grass and garden products. AgrEvo EH kicked off the new program at a party celebrating the completion of Heritage Gardens, a neighborhood of 15 homes built by Habitat for Humanity, a non-profit, Christian organization dedicated to working with low-income families to build their dream.

Mariana Loboguerrero, family services coordinator for Habitat for Humanity of Greater Orlando, said, "By investing 500 hours of their own ‘sweat equity’ as a downpayment, and paying for the balance through a no-interest mortgage, these families have an opportunity to own their own home." "We are proud to partner with AgrEvo," she said.

AgrEvo EH marketing manager Paulo Moraes said, "We can’t think of a better way to support these new homwowners, who will soon have to deal with unwelcome weeds and insects as they settle into their new homes." AgrEvo EH will be delivering more "Unwelcome Baskets" to Habitat owners in Atlanta later this summer, and to other cities throughout the country in the future.

ECOLAB GRAND FORKS OFFICE RETURNS AFTER FLOOD CLEANUP
GRAND FORKS, N.D. — When the Red River swelled from the melting of a winter’s record snow and flooded nearly the entire city of Grand Forks this spring, it forced Ecolab’s Grand Forks staff of 144 to head south.

Nearly all the employees of Ecolab’s Grand Forks office picked up what belongings they could and trekked almost 300 miles to continue work at Ecolab’s Minnetonka, Minn., office. Remarkably, and despite obvious challenges, the relocated office was up and running again after only two hours, said John Douglass, vice president of finance and administration. "Our people have been fantastic. They came to work 300 miles away from their home, picked up kids and family and stayed with relatives — all voluntarily," Douglass said.

The Grand Forks office is a division of St. Paul, Minn.-based Ecolab, which offers services and products, including cleaning and sanitizing products and a pest elimination division, to hotels, restaurants, schools, and other commercial facilities.

Ecolab’s employees first learned they would have to evacuate their downtown building on April 18, and rushed to remove computer equipment from the lower level, as the Red River began to move in. One employee even had to be rescued by helicopter when the area she was stuck in was surrounded by flood water and "became an island," Douglass said. In all, 500,000 Grand Forks residents left town or moved to higher ground in the spring flood.

Five weeks later, the employees have been returning to Grand Forks. While Ecolab’s downtown building was spared from the downtown fire, its lower level sustained significant damage. The extensive cleanup effort has included removing organic material, disinfecting the area, and restoring various structures. The company paid employees forced off the job because of the flood, and has also paid employees for any time they have spent working with the Red Cross in clean-up projects, and home restorations throughout the Grand Forks area. Ecolab has also donated cleanup and sanitizing chemicals to aid the Red Cross effort.

PATENT SOUGHT FOR SLABJET 2000
PLUMSTEADVILLE, Pa. — B&G Equipment Company has applied for a patent for its SlabJet 2000, a liquid tool and foamer combination for use in sub-slab termite treatments. Patent approval is expected by January 1998, according to Eric Snell, technical director for B&G.

Inventor’s rights are automatically protected without a patent for the first year the prouct is out, but a patent is required to extend the protection of its investment

The development of the tool was spearheaded by Snell, along with Bruce Yeagle. The SlabJet 2000 tip injects air into the termiticide mixture to create a foam-like "air mix." The result allows the dispensing of termiticide under slabs with fewer holes and one application. According to Mike Pessiki, executive vice president of B&G Equipment, the air mix created by the SlabJet 2000 distributes "better than liquid and just as well as foam." The device was introduced in October of 1996.

HAWAIIAN LEGISLATURE PASSES LICENSE LAW
HONOLULU, Hawaii — In late April, Hawaiian Governor Benjamen J. Cayetono signed into law Act #80 of the Hawaiian Legislature, requiring GTE Hawaii Telephone to disconnect the phone of any person advertising as a pest control company without having a valid license.

The law defines the term "advertising" to include cards, signs, vehicle markings, as well as print and broadcast media ads. All ads are required to contain the PCO’s license number, and print ads must also carry the PCO’s number. With print advertising, the publisher is required to obtain proof of license from the PCO prior to publishing an advertisement.

The bill is partly the result of lobbying done by the Hawaii Pest Control Association. "This is a first-in-the-nation law that we felt was necessary based on an increasing number of reports of unlicensed individuals, spraying chemicals and causing millions of dollars of damage in other parts of the country," said Tim Lyons, HPCA executive director. Lyons said the bill was also important because a PCOs license can be revoked in Hawaii on a monthly basis, whereas many advertisements, such as Yellow Pages ads, are updated only yearly.

With the new law, however, if a PCO looses his or her license, then the advertised phone number is disconnected immediately, making it nearly impossible for PCOs to acquire new business without a license.

Lyons said the bill met resistance and was not passed when the HPCA first proposed it on 1995. The HPCA reintroduced the bill in 1997, when it was passed by a newly configured legislature. Though the law is the first of its kind in the United States, Lyons said, many other state association representatives have expressed their interest in pursuing similar legislation.

Lyons said the HPCA will be responsible for educating the media, by sending a copy of the new law to all television, radio and print companies in Hawaii, in an effort to aid in compliance.

NEW DRYWOOD TERMITE RESEARCH
FORT LAUDERDALE, Fla. — Recently published University of Florida research indicates liquid borate treatments, in general, have low toxicity against drywood termites, according to a DowElanco news release. The study also reveals that fumigation with Vikane gas fumigant eliminated all monitored drywood termite colonies in a field test site.

The research, conducted by Drs. Rudolf H. Scheffrahn, Phil Busey and Nan-Yao Su of the University of Florida, appeared in the April 1997 edition of the Journal of Economic Entomology. In the study, the researchers assessed the efficacy of selected compounds against drywood termites in the laboratory using a simulated gallery setting. They also conducted trials in existing structures to evaluate chemical treatments for drywood termite control, including fumigation, by using acoustic emissions measurements.

Three borate formulations were tested. Liquid borate solutions were applied twice to the surface of bare, accessible wood, and a liquid and dust formulation were injected approximately every 20 inches into drywood termite galleries in the field. After evaluating the results of those tests, the researchers concluded liquid borate solutions have low toxicity against drywood termites. The study also showed that surface-applied liquid borate treatments did reduce foraging activity, but the colony rebounded after only three months. The study supports earlier results from research conducted at the University of Florida in 1993 showing that surface borate applications do not penetrate much beyond the surface nor affect termite mortality enough to eliminate colonies.