Bed bugs will wreak havoc on consumers, but benefit the industry
Los Angeles, CA (PRWEB) April 08, 2012
One can hardly open the paper anymore without reading about the rise of bed bugs across the United States. While the trend has left homeowners and business owners frustrated, the Pest Control industry has received an unexpected boon, due to heightened demand for its services. During 2012, the industry is expected to record $11.4 billion in revenue, reflecting an increase of 5.5% from the previous year and annualized growth of 2.9% over the five years to 2012. According to IBISWorld industry analyst Caitlin Moldvay, “while bed bugs were typically confined to hotels and some residences, the creatures have begun to pop up in unlikely spots, including movie theaters, offices and even clothing stores.” The increased occurrence of these pests has led to substantial demand for pest exterminators. Furthermore, the more insecticide-resistant strain of bed bugs has driven operators to work on product innovation to deliver solutions to homeowners and businesses. Heightened demand for bed bug extermination has also caused the number of industry companies to rise.
Market share concentration within the Pest Control industry is low. The majority of the 21,562 operators in the industry are small- to medium-size firms. Moldvay says “industry companies are generally spread across many locations, in order to be close to key consumer markets to minimize transportation costs and provide faster service.” The two largest pest control companies are the ServiceMaster Company and Rollins, which have performed strongly during the past five years.
Conditions are expected to further improve over the five years to 2017. Increased business and consumer spending will drive demand for regular inspections for pests. Furthermore, with increased income, businesses and consumers will be less likely to opt for cheaper household products from home and garden stores. Instead, they will favor more effective and expensive professional exterminating treatments. Housing sales and residential construction are also expected to rise, increasing demand for fumigation services. Increased pest populations across the United States will characterize the next five years, as the bed bug population continues rising.
For more information visit IBISWorld’s Pest Control in the US industry page
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This industry includes companies that provide bird control and exterminate mosquitoes, rodents, termites and other insects and pests for residential and commercial clients. The industry also provides fumigation services. This industry does not include extermination services for crop and forestry production.
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