Revenue Solid but Slowing?

Termite control had a respectable year in 2022. On average, it generated 25 percent of revenue — or $344,000 — per company service location, according to the 2023 PCT State of the Termite Market survey.

The termite business at Asash Termite & Pest Control in Laredo, Texas, was doing “superbly,” said President Henry B. Fernandez Jr., in late October. “My termite sales are roughly 18 to 20 percent of my gross volume sales. I’m always very positive as far as growth is concerned,” he said.

The percentage of revenue generated from termite control services increased somewhat or significantly in the past three years, reported 53 percent of pest management professionals in the survey. Nearly one-third (32 percent) said termite control in 2022 was more significant to the company’s bottom line than five years ago.

Revenue growth was helped by a hot housing and re-fi market, which increased demand for termite inspection and control services, reported 50 percent of PMPs.

As the year progressed, however, interest rates skyrocketed, bringing the housing market to a standstill. In fact, 30 percent of PMPs said high interest rates and a tighter housing market decreased demand for their termite control services.

Bowman Termite & Pest Management — among the 86 percent of pest control companies that performed termite inspections and reports for real estate transactions — felt the impact. The Wailuku, Hawaii-based company performed 1,000 fewer inspections in 2022 than the year prior.

“The market has really slowed to halt here as far as home sales and condominium sales and land sales. The numbers show that,” said President Wakon Childers.

According to the PCT survey, 18 percent of pest management professionals said termite revenue decreased last year, up from 10 percent who reported a decrease in 2021.