Industry up 10.7 percent in April 2022, per Blair/PCO M&A Specialists index

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 April 2022, the total U.S. pest index increased 10.7 percent year-over-year.

This shows a continued deceleration from March and February. 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 is due to a colder spring season and more difficult comparisons with last year,” said William Blair Equity Researcher Tim Mulrooney. “However, the result in April is still slightly above the long-term historical average index growth rate of 10 percent. Based on conversations with pest providers over the last two months, we believe at least half of the index growth rate is being driven by higher pricing.”

Dan Gordon, managing member of PCO M&A Specialists and sister firm PCO Bookkeepers, said in a news release that he is seeing most clients raise prices to try to keep pace with inflation.

“Our latest data is showing that the average PMP is paying almost 15 percent more on direct costs than he did just one year ago,” said Gordon, who is also Pest Management Professional magazine’s financial columnist. “While these price increases project a picture of revenue growth, we are seeing profitability getting squeezed.”

On a sequential basis from March to April 2022, the index increased 8.9 percent, which is somewhat lower that what is typically observed for the month of April. The total pest index decelerated in April, primarily due to slower growth in the residential and termite sub-indices.

The Residential Pest Index increased 13 percent year-over-year and 13 percent on a sequential basis. The Commercial Pest Index increased 14 percent year-over-year and 4 percent on a sequential basis. The Wood Destroying (Termite) Index increased 2 percent year-over-year and 10 percent on a sequential basis. The Bed Bug Index increased 12 percent year-over-year and declined 4 percent on a sequential basis.

View the full report and the archive of past reports at SellMyPCOBusiness.com.

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from Pest Management Professional https://www.mypmp.net/2022/06/10/industry-up-10-7-percent-in-april-2022-per-blair-pco-ma-specialists-index/
Sacramento CA