Pest infestations result in $1.7 billion lost revenue for Australian businesses
Announcement posted by Rentokil 25 Sep 2015
Research reveals the true impact of pests on business operations – from loss of revenue and productivity, to cost increases and even closure.
Rentokil, global experts in pest management and control, today revealed research into the threats and impacts of pests to businesses across Australia.
The report found that during 2014, Australian businesses affected by pest infestations also experienced a significant increase in their operating costs, collectively spending $796 million, while revenues declined by $1.7 billion.
On average, an incident of pest infestation in Australian business lasted for just under three weeks. Food-based businesses were particularly vulnerable with 12% of companies within this industry reporting losing more than 10 working days as a result of pest infestation. A significant 37% of respondents experienced three incidents or more over a five-year period, and on average one pest infestation occurs just over every two years.
The report also revealed adverse impacts on staff morale (over 30%) was the main impact on business costs in Australia, as a direct result of pest infestation. In addition, 20% of businesses reported damaged goods, and replacement, maintenance and repair costs.
Alain Moffroid, Rentokil Initial Managing Director, Pacific said pests do not discriminate.
“Any size business operating in any type of industry across the globe can be vulnerable. Our analysts attribute this to our own population growth, urbanisation and heightened mobility, all of which is making it easier for mammals, birds and insects to spread, find shelter, feed, and reproduce – often at speed. As each year passes, businesses can become more prone to pests and are experiencing damaging – and costly – consequences.”
“A business’ reputation, relationships with its customers, clients, suppliers and of course its employees are all at stake when a pest infestation occurs in the workplace. At Rentokil we see first-hand how a single pest infestation, however small, can encourage repeat occurrences – particularly if the original issue is not effectively handled from the outset. A structured approach is crucial in ensuring any potential infestation scenario is covered to reduce the likelihood of an infestation taking place.”
Other key research findings
A business should aim to suppress the risk of pest infestation completely – so they do not reach the point of infestation in the first place. Rentokil uses the following four factors in an Integrated Pest Management approach across any commercial environment:
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About Rentokil
Rentokil is a global leader in pest control, bringing expert, reliable and professional advice to commercial and residential customers in over 60 countries worldwide. Over 12,000 qualified technicians across local Rentokil teams respond quickly and effectively to deal with the full range of pest control issues on behalf of customers – so they can continue with their daily lives. Rentokil works constantly on introducing innovations and effective solutions for pest control, with specific emphasis placed on health, safety and protection of the environment.
For more information, please visit www.rentokil.com.au
Notes to Editors
The report found that during 2014, Australian businesses affected by pest infestations also experienced a significant increase in their operating costs, collectively spending $796 million, while revenues declined by $1.7 billion.
On average, an incident of pest infestation in Australian business lasted for just under three weeks. Food-based businesses were particularly vulnerable with 12% of companies within this industry reporting losing more than 10 working days as a result of pest infestation. A significant 37% of respondents experienced three incidents or more over a five-year period, and on average one pest infestation occurs just over every two years.
The report also revealed adverse impacts on staff morale (over 30%) was the main impact on business costs in Australia, as a direct result of pest infestation. In addition, 20% of businesses reported damaged goods, and replacement, maintenance and repair costs.
Alain Moffroid, Rentokil Initial Managing Director, Pacific said pests do not discriminate.
“Any size business operating in any type of industry across the globe can be vulnerable. Our analysts attribute this to our own population growth, urbanisation and heightened mobility, all of which is making it easier for mammals, birds and insects to spread, find shelter, feed, and reproduce – often at speed. As each year passes, businesses can become more prone to pests and are experiencing damaging – and costly – consequences.”
“A business’ reputation, relationships with its customers, clients, suppliers and of course its employees are all at stake when a pest infestation occurs in the workplace. At Rentokil we see first-hand how a single pest infestation, however small, can encourage repeat occurrences – particularly if the original issue is not effectively handled from the outset. A structured approach is crucial in ensuring any potential infestation scenario is covered to reduce the likelihood of an infestation taking place.”
Other key research findings
- A massive 83% of Australia businesses have experienced incidences of pest infestations over the last five years
- Almost 50% of pest infestations in Australian businesses lasted between 1-2 weeks
- The most common pests that affected businesses were cockroaches (51%), mice (34%), Ants (27%) and rats (25%).
- Just under 30% experienced brand loyalty damage and damage to reputation or customer trust due to pest infestations
A business should aim to suppress the risk of pest infestation completely – so they do not reach the point of infestation in the first place. Rentokil uses the following four factors in an Integrated Pest Management approach across any commercial environment:
- Exclusion – eliminate opportunities for entry, blocking gaps, proofing doors, windows and open areas, in order to halt entry into critical business areas
- Restriction – Pest awareness knowledge and training for staff in order to help staff spot the signs of pest activity or entry at an early stage, as well as removing pest access to food and harbourage in restricted areas
- Destruction – includes innovative, effective solutions to eradicate existing infestations effectively and efficiently by professionally trained technicians
- Monitoring – ensure regular checks for early warning signs of pest activity and use monitoring devices to show early signs of activity, enabling a quick reaction, so that the impact on the business is kept to a minimum and halted as soon as possible.
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About Rentokil
Rentokil is a global leader in pest control, bringing expert, reliable and professional advice to commercial and residential customers in over 60 countries worldwide. Over 12,000 qualified technicians across local Rentokil teams respond quickly and effectively to deal with the full range of pest control issues on behalf of customers – so they can continue with their daily lives. Rentokil works constantly on introducing innovations and effective solutions for pest control, with specific emphasis placed on health, safety and protection of the environment.
For more information, please visit www.rentokil.com.au
Notes to Editors
- This report was commissioned by Rentokil and produced by the Centre for Economics and Business Research (Cebr).
- Primary research, conducted by research agency, Opinion Matters, was based on responses from business decision makers in each of the following territories to conclude the total costs of pest control for each sector of the economy: UK (sample: 212), France (sample: 211), Italy (sample: 210), the USA (sample: 210) and Australia (sample: 210)
- The Centre for Economics and Business Research (Cebr) used data from national statistical offices, along with the primary research to generate monetary estimates of the gross impacts of pest infestation on businesses.