Pest Index Increases 14 Percent Year-Over-Year in June

The total U.S. William Blair/PCO M&A Specialists pest index increased 14 percent year-over-year in June, showing deceleration from May. On a sequential basis, the index increased 3 percent from May.

This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies.

The residential index remains strong, but the other indices (commercial, termite and bed bug) slowed down in June, according to the report. The total pest index increased 14 percent in the second quarter, down from 16 percent in the first quarter.

“We believe the deceleration was primarily due to a slow start to the spring season (i.e., colder weather),” said William Blair equity researcher Tim Mulrooney. “In addition, based on recent conversations with pest control operators, we suspect more aggressive price increases over the last several months have helped offset some of the negative impact from less favorable weather.”

PCO M&A Specialists managing member Dan Gordon added, “While the overall economy appears to be slowing, the pest industry is still healthy and growing. However, we are seeing a slight tick down in the rate of industry growth. But it is still growing, supporting what most PMPs know: that our industry is recession resistant and a great place to be in uncertain times.”

The residential pest index increased 18 percent year-over-year and 7 percent on a sequential basis. The Commercial Pest Index increased 14 percent year-over-year and 2 percent on a sequential basis. The Wood Destroying (Termite) Index increased 1 percent year-over-year and declined 9 percent on a sequential basis. The Bed Bug Index increased 5 percent year-over-year and 2 percent on a sequential basis.