William Blair – Pest Control Buzz

May 2022 Summary

The total U.S. pest control index increased 17% year-over-year in May, showing a strong acceleration from the slowdown in April. We believe the slowdown in April was primarily due to a slow start to the spring season (i.e., colder weather). 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. As suggested in prior reports, pest operators that we have spoken to have confirmed recent price increases of 5%-10%, well above the historical rate of 1%- 2%.

1. The Residential Pest Index increased 18% year-over-year and 4% on a sequential basis.

2. The Commercial Pest Index increased 20% year-over-year and 2% on a sequential basis.

3. The Wood Destroying (Termite) Index increased 12% year-over-year and 1% on a sequential basis.

4. The Bed Bug Index increased 20% year-over-year and 8% on a sequential basis.

Our Take

The Total U.S. Pest Control Index increased 17.4% year-over-year in May 2022. On a sequential basis, the index increased 2.8% from April 2022. This index includes recurring and nonrecurring revenue for residential pests, commercial pests, and termites. It does not include residential door-to-door companies.

The total pest index accelerated in May, driven by an acceleration across all four sub-indices (residential, commercial, termite, and bed bug). Based on our conversations with privately-held pest operators, we believe the slowdown in April was due to a colder spring, which leads to lower new-customer volumes. However, we believe warmer weather and higher pricing helped drive a resurgence in May. The two-year compound annual growth rate (CAGR) in May 2022 was 16%, driven by increased market penetration rates over the last two years.

Monthly Archive: 2022

January, 2022 – Pest Index

February, 2022 – Pest Index

March, 2022 – Pest Index

April, 2022 – Pest Index

May, 2022 – Pest Index

Monthly Archive: 2021

January, 2021 – Pest Index

February, 2021 – Pest Index

March, 2021 – Pest Index

April, 2021 – Pest Index

May, 2021 – Pest Index

June, 2021 – Pest Index

July, 2021 – Pest Index

August, 2021 – Pest Index

September, 2021 – Pest Index

October, 2021 – Pest Index

November, 2021 – Pest Index

December, 2021 – Pest Index

Monthly Archive: 2020

August, 2020 – Pest Index

September, 2020 – Pest Index

October, 2020 – Pest Index

November, 2020 – Pest Index

December, 2020 – Pest Index

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