INDUSTRY UPDATE – WHAT WE’RE SEEING

As the sole insurer dedicated to the pest management industry, we’re talking to your peers every day about what’s happening in their businesses -you could say we hear and see it all! We’ve put together the below snapshot of the key trends our team is noticing as 2023 unfolds.

Labour Shortages And Wages Pressure

Businesses are still working hard to recruit new starters and experienced technicians, in all urban regions across the country.

We’ve been talking to successful, established business owners who’ve had position vacant ads running for experience techs for months without any eligible applicants!

As unemployment remains low, we don’t expect to see a quick shift in applicants for tech roles, however we are seeing a shift in women returning to the workforce that could be an opportunity for tech and admin roles in our industry. With cost of living increasing, the number of women looking for employment (part-time and full-time) is also increasing, as a way to keeping up with mortgage payments, fuel and energy prices. These women are typically looking for flexible hours, work from home options (where appropriate) and an organizational culture that fits with their values.

We think this is something savvy business owners might capitalize on before the rest of the market catches on!

Generational Shifts

Experienced technicians and business owners seeking retirement after decades in the industry are hanging up their boots, many without passing the business on to family members or a purchaser. What a loss of knowledge for our future generations of pesties!

When leaving the industry, there’s a long running trend of business owners opting out of runoff insurance. This means they’re not protected against claims for their past work. Learn from a client who recently did take a run-off policy before retiring, only to have not one but two personal injury claims against him in subsequent months alleging negligence in a property inspection he’d performed some two years earlier! He has the peace of mind in retirement that he’s protected by his insurance for the costs of defending these claims.

Less Disposable Household Income And Mortgage Stress

We all know the importance of keeping up regular maintenance on properties, including protection against pest infestation and termite attack. After the increased uptake for pest management during COVID, when people were at home more, came the fall as people returned to work and increased costs of living started to bite. Many of our clients are already feeling the pinch with less work in urban pest management and termite treatments and inspections. Less work fuels competition and drives prices for pest control down – and none of us want a race to the bottom.

Further, we’re seeing an increased instance of statements of claims brought against our clients. These are claims filed in state courts that inevitably must be defended by lawyers, not just the insurer. Recently, we’ve had at least two of these claims that are a “stretch” without much evidence or basis against our client. Unfortunately, these new homeowners have genuine building or termite damage issues but cannot afford the repairs, so they’re looking for someone to pin the problem on, which often means the Pre-Purchase Pest Inspector and their insurance company.

We expect to see more distressed, desperate property owners seeking to make a case against a failed termite management plan or pre-purchase inspection as mortgage rate pain is felt and property prices in some areas fall.

So what does all this mean for WIPM? Is the picture really this grim?

We see it as an opportunity to rely more heavily on networks such as WIPM for learning from each other, supporting each other and lifting the standards and reputation in the industry. You’ll make some new friends and may find some simple, powerful strategies to protect and grow your business despite the market challenges.

I’m a big advocate of “controlling the controllables”, so here are my thoughts on doing just that during these changing times:

• Read the Australian Standards and review your paperwork regularly. Get a peer review, independent legal advice or ask your insurer for some suggestions as to good practice;

• Amp up your customer service. Take extra steps to let your customers know, in writing, about their risk of termite attack and the limitations of your service. If there’s significant risk or damage from termites, consider how far you can go to help them understand their options for treatment and ensure they never take it as a guarantee termites have been forever eliminated from their property;

• Take your recruitment and retention strategy seriously if you have employees – attract and keep the best you can that align with your personal values;

• Increase your prices. There’s more risk on the services you’re providing, your costs are going up, and it’s a sure fire way to ensure only the customers that truly value your service remain with you

At Rapid, we’re always keen to talk to our clients, bounce ideas around paperwork and claim prevention and talk to your teams about some case studies.

Feel free to get in touch (even if you’re not a current client!) if we can help you out!

BELINDA SMITH CEO, Rapid Solutions

Experienced leader and executive with a diverse industry sector background. Skilled in business growth, strategic planning and implementation and culture building. Focussed on providing customers with peace of mind and tailoring service offerings to meet market needs. Passionate about ending family violence because everyone deserves to live safely in their own home, workplace and community.