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New FieldRoutes Data Finds Software is Key to Profit Growth as Pest Industry Faces Rising Costs

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FieldRoutes, a ServiceTitan (NYSE:TTAN) product, has released its annual State of the Pest Industry Report, revealing significant challenges and opportunities in the pest control sector. The comprehensive study, surveying over 1,000 pest control company employees, shows that 89% of businesses are struggling with rising material and equipment costs.

Key findings indicate that 35% of businesses view recession as a major threat (up 15% from 2024), while 89% plan to increase technician wages. Despite economic pressures, the industry shows resilience with 35% expecting market improvement, 43% anticipating stability, and 23% forecasting decline. The report highlights technology adoption as crucial for growth, though only 20% of companies plan to invest in new software this year, with the same percentage planning to implement AI solutions.

[ "44% of companies reported decreases in lead times, indicating supply chain improvements", "89% of companies plan to increase wages for technicians to improve retention", "Companies prioritizing technology adoption see improvements in operational efficiency and margins", "35% of businesses expect market improvement in the coming year" ]
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Negative

  • 89% of businesses are struggling with rising material and equipment costs
  • 35% of pest control businesses cite recession as a major threat, up 15% from 2024
  • Only 20% of companies plan to invest in new software and technology
  • Maintaining profitable margins becoming increasingly challenging with rising operational costs

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Despite Economic Uncertainty, Rising Costs, and Labor Challenges, Pest Industry Leaders Remain Cautiously Optimistic and See Technology Adoption as Critical to Their Success

ST. LOUIS, July 10, 2025 (GLOBE NEWSWIRE) -- FieldRoutes, a ServiceTitan product and leading cloud-based and mobile SaaS provider for field service businesses, today released its annual State of the Pest Industry Report, a comprehensive study of over 1,000 pest control company employees, and primarily general managers, owners, and operations managers. The report reveals that a staggering 89% of businesses are grappling with rising material and equipment costs, which is putting serious pressure on profitability. Despite this, adoption of digital tools that can drive efficiency and growth remains uneven across the industry.

“Digital tools have the power to transform pest control businesses by driving efficiency, improving margins, and giving contractors the edge they need in this competitive market,” said Dylan Henryson, General Manager of Pest and Lawn at FieldRoutes. “While our industry has historically been slower to adopt technology solutions and AI, that’s changing fast. With rising operational costs and continued labor shortages, embracing technology is no longer just a best practice, it’s essential to protecting profits and staying ahead in the market.”

Material Costs Climb While Margins Shrink

Despite more than one-third (35%) of pest control businesses citing a potential recession as a major threat to achieving goals this year, a 15% increase from 2024, leaders are cautiously optimistic. Thirty-five percent expect the market to improve this year, 43% expect the market to stay the same and 23% expect it to worsen. At the same time, concerns around material and product costs, material availability, and maintaining profitable margins rank highest as the biggest risks to meeting goals. Notably, the number of respondents who ranked maintaining profitable margins as a top goal increased by 18% compared to 2024, underscoring growing anxiety about the broader economic outlook. Still, some indicators suggest early signs of improvement and stability. Forty-four percent of companies reported decreases in lead times, signaling possible improvements across the supply chain despite ongoing uncertainty.

Retaining employees and focusing on the customer experience, amidst market volatility

As pest control businesses combat economic uncertainty, leaders are prioritizing workforce retention and customer experience as key differentiators. Reflecting this, pest control leaders ranked growing revenue, retaining existing customers, and acquiring new customers as the top three business goals this year. Building strong customer relationships and guaranteeing an excellent overall experience remains vital to continued business growth and success and a key part of strategy with repeat customers and referrals listed as top revenue sources.

In tandem, strengthening a company’s workforce with dependable staff fosters trust and loyalty amongst customers, positively impacting quality and reputation. As a result, investments in additional headcount, recruitment and hiring, and office expansion remain top priorities for pest leaders this year. Companies with long-time employees often have higher customer satisfaction, incentivizing leaders to offer competitive pay for employees. As such, this year 89% plan to increase wages for technicians, and the majority do for office staff and sales representatives as well. Attractive compensation packages, combined with access to digital tools to lessen time-consuming back-office tasks, are critical for increasing staff retention and elevating the overall customer experience.

Sustained technology investments are crucial for future growth

Technology is unlocking new efficiency across the pest control industry by helping support leaders with day-to-day operations and streamlining workflows. According to the survey, most pest businesses rely on software for accounting, electronic payments, payroll processing, and time tracking while adoption was more split for other areas of the business. While only 20% of respondents plan to invest in new software and technology this year, these businesses are prioritizing all-in-one business management solutions (66%), product features and functionality (66%), integrations to existing systems (54%), and price (46%) as top decision-drivers. The biggest reasons for respondents looking to switch technology providers are increasing operational efficiency, automating workflows, increasing gross margins, and scaling the business, highlighting an increased focus on lean growth this year.

Over the next 1-3 years, pest control leaders believe artificial intelligence, marketing automation, property intelligence, and data analytics will be the most helpful for their business. Despite this, investments in AI remain low with only 20% planning to introduce AI into their business this year. Of those adopting AI, business leaders believe it could have the largest impact on their marketing, field operations, and sales.

To review the full findings and key takeaways, download the State of the Pest Industry Report here.

About the research
This research was conducted by Thrive Analytics on behalf of FieldRoutes, polling more than 1,000 pest control employees from businesses representing a variety of geographical regions, business growth stages, and revenue levels. This research is for informational purposes only, and FieldRoutes provides no assurances (express or implied) regarding the accuracy of the survey data.

About FieldRoutes
FieldRoutes, a ServiceTitan product, is a leading cloud-based and mobile SaaS provider for field service businesses. FieldRoutes' platform automates many aspects of field service operations for enterprise and small business customers with office management, advanced route optimization, payment processing, digital sales, marketing, and customer acquisition capabilities. Field service providers across the country rely on FieldRoutes to provide them with data-driven insights to become more efficient and drive revenue to their business, so they can grow quickly, scale intelligently and serve their customers relentlessly.

© 2025 Field Service Holdings, LLC. All rights reserved. FieldRoutes, PestRoutes, and all FieldRoutes and PestRoutes product and service names mentioned herein are registered trademarks or unregistered trademarks of Field Service Holdings, LLC or its affiliates in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

Press Contact
Sarah Cantu
press@fieldroutes.com


FAQ

What are the main challenges facing the pest control industry in 2025 according to FieldRoutes' report?

The main challenges include rising material and equipment costs affecting 89% of businesses, recession concerns (35% of businesses, up 15% from 2024), and maintaining profitable margins amid economic uncertainty.

How many pest control companies plan to increase wages in 2025?

89% of pest control companies plan to increase wages for technicians in 2025, with the majority also planning increases for office staff and sales representatives.

What percentage of pest control companies are planning to invest in new technology in 2025?

Only 20% of pest control companies plan to invest in new software and technology in 2025, with the same percentage planning to implement AI solutions.

What are the top business goals for pest control companies in 2025?

The top three business goals are growing revenue, retaining existing customers, and acquiring new customers.

How do pest control companies view the market outlook for 2025?

35% expect market improvement, 43% expect stability, and 23% expect market conditions to worsen.