The William Blair/PCO M&A Specialists Pest Index is a proprietary index of the monthly sales for 140 different U.S. pest control companies across 30 states. For May 2022, the total U.S. pest index increased 17.4 percent year-over-year.
Per a news release, this is showing a strong acceleration from the slowdown in April. On a sequential basis, the index increased 2.8 percent from April. This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies.
“We believe the slowdown in April was primarily due to a slow start to the spring season (i.e., colder weather),” William Blair Equity Researcher Tim Mulrooney said in the news release. “However, based on recent conversations with pest control operators, the warmer weather picked up in early May, which likely contributed to strong lead generation as the month progressed. In addition, we suspect more aggressive price increases over the last several months also contributed to the stronger result in May.”
PCO M&A Specialists Managing Member Dan Gordon, CPA, noted in the news release, “If the aggressive price increases we see are taken out of the equation, we are still seeing good industry growth as we see the overall economy slow.” Gordon is also is also Pest Management Professional magazine’s financial columnist.
The Residential Pest Index increased 18 percent year-over-year and 4 percent on a sequential basis. The Commercial Pest Index increased 20 percent year-over-year and 2 percent on a sequential basis. The Wood Destroying (Termite) Index increased 12 percent year-over-year and 1 percent on a sequential basis. The Bed Bug Index increased 20 percent year-over-year and 8 percent on a sequential basis.
View the full report and the archive of past reports at SellMyPCOBusiness.com.