The Pest and Weed Control Services industry is thriving after weeding out poor demand conditions.
Melbourne, Australia (PRWEB) April 22, 2012
Pest control providers are sensitive to trends in both residential and non-residential construction. These markets have experienced difficult times recently, but with building investment improving in the first half of 2010-11 as economic conditions strengthened, industry demand increased. In 2011-12, the Pest and Weed Control Services industry is forecast to generate revenue of $1.17 billion, up 2.5% from the previous year, as improved economic conditions are expected to benefit the industry. IBISWorld industry analyst Alen Allday explains that ‘in particular, stable non-residential building construction activity and fewer business client failures are expected to contribute to industry growth, although residential construction activity may slow in the second half of the year.’ Annualised industry revenue growth for the five years through 2011-12 is estimated at 0.8%.
Allday adds, ‘the recent restrictive economic environment particularly affected demand for pre-purchased pest inspections and reports, especially for housing, while many business clients reviewed the frequency and level of service required.’ The Pest and Weed Control Services industry has a low level of market share concentration. The two largest companies in the industry are ISS Facility Services Australia Limited and Rentokil Pty Limited.
The Pest and Weed Control Services industry faces tight controls on its operations from stringent environmental regulations. Consumers are also wary about applying pest control chemicals around the home and are seeking alternatives. However, stricter health regulations now require regular monitoring and control of pests across business and commercial properties, particularly in the food and hospitality industries, which boosts demand for pest control services. The outsourcing of pest control services will support rising demand for the industry's services over the next five years. In addition, continuing stringent health regulations on food and other industries will enhance this industry's growth potential. Stable economic conditions from 2012-13 will benefit the industry's operators over the five years through 2016-17. During the period, improving economic conditions are expected to boost building construction activity, driving demand for the industry's services.
For more information, visit IBISWorld’s Pest and Weed Control Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes companies that provide industrial or domestic pest control services, including weed control services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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