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 17.3 percent year-over-year in March 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 March increase marks an acceleration from January and February, which were up 5.1 percent and 6.3 percent respectively year-over-year. The index increased 21.3 percent on a sequential basis, which is higher than normal seasonal trends (up 10 percent in March 2020 and 16 percent in March 2019). 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.
Some of this increase can be attributed to an easier comparison with last year, as the last two weeks of March 2020 were disrupted by the start of the COVID-19 pandemic. However, even after taking the easier comparison into account, the result for March 2021 is very strong and indicative of a healthy pest control market in the U.S., according to the index.
All three pest control markets — residential, commercial, termite — experienced a significant sequential uptick in March. The residential index accelerated to 23 percent growth in March, up from 12 percent growth in February. The commercial pest index accelerated to 17 percent growth in March, up from 6 percent growth in February. The termite index accelerated to 10 percent growth in March, up from flat revenue in February. Furthermore, the strong sequential increase in bed bug revenue may indicate that sales in this market hit a low point in 2020.
View the full March report and the archive of past reports at SellMyPCOBusiness.com.