According to PCO M&A Specialists, the Newton, N.J.-based advising firm led by Pest Management Professional’s financial columnist, Dan Gordon, CPA, the total U.S. pest control index increased 21 percent year-over-year in April 2021. The firm partners with global banking and asset management company William Blair to determine the monthly sales for 140 different U.S. pest control companies across 30 states.
The April increase marks an acceleration from January, February and March, which were up 5.1 percent, 6.3 percent and 17.3 percent respectively, year-over-year. Much of the increase can be attributed to the COVID-19 pandemic’s effects on the market in spring 2020, the report states.
The index increased 11.3 percent on a sequential basis in April, which is a month that typically sees an increase in the index. This index includes recurring and nonrecurring revenue for the residential pest, commercial pest and termite segments of the industry. It does not include residential door-to-door companies.
In a news release, William Blair Equity Researchers Tim Mulrooney and Sam Kusswurm said, “April’s results support the thesis that the U.S. pest control market remains poised for another strong year of growth, as higher penetration rates in the residential market persist in 2021 and are supplemented by continued strength in the termite business and a rebound in commercial pest sales.”
April’s uptick was driven by an acceleration in the commercial and termite indexes, while the residential index experienced a slight deceleration. The commercial pest index accelerated to 30 percent growth in April, up from 17 percent growth in March. The termite index accelerated to 12 percent growth in April, up from 10 percent growth in March. The residential index increased 22 percent year-over-year in April, down from 24 percent growth in March. Meanwhile, the bed bug index increased year-over-year for the first time since February 2020.
View the full April report and the archive of past reports at SellMyPCOBusiness.com.