Companies in this industry exterminate and control insects and other pests. Major companies include US-based EcoLab, Terminix (owned by ServiceMaster), and Orkin (owned by Rollins), as well as the pest control operations of Rentokil Initial (UK) and Sanix (Japan).
Demand is driven by sales and occupancy of residential, commercial, and industrial properties. The profitability of individual companies depends on providing good service. Large companies benefit from brand recognition and economies of scale in purchasing and administration, as well as from the ability to serve commercial accounts that include locations in multiple markets. Small companies can compete successfully by specializing in a type of service or a local market. The US industry is fragmented: the 50 largest firms generate less than 50% of industry revenue.
Products, Operations & Technology
Major sources of revenue include residential insect services (50% of US industry revenue), followed by nonresidential insect services (20%) and residential and nonresidential rodent control (10%).