Market Overview According to Kentley Insights Septic Tanks

Market Overview § According to Kentley Insights’ Septic Tanks and Portable Toilets 2021 US Market Report, the industry increased revenues by an average of 5. 9% during the 2018– 2020 period to a total of $5. 3 billion. § Revenues for the septic, drain and sewer cleaning services industry haven’t increased quite as much, or 1. 9% annually during the 2016 – 2020 period, but will increase its revenues by 1. 6% during 2021 to a total of $3. 6 billion, according to IBISWorld research. § The US Census Bureau’s American Housing Survey for 2019 reported 20. 29 million housing units of all types with a septic tank or cesspool. Of those, 17. 93 million were in owner-occupied units and 2. 36 million in renter-occupied units.

Home-Building Trends Favor Septic Systems Use § Despite the pandemic, home building and residential real estate were active and robust markets during 2020. The US Census Bureau estimates 811, 000 new homes were sold, an 18. 8% increase from 2019’s 731, 000. § The National Association of Home Builders (NAHB)/Wells Fargo Regional Housing Market Index for January 2021 was Northeast (68), Midwest (81), South (82) and West (92) (based on a 100 -point scale). § Generally, rural homes are more likely to have septic systems, but so do the outlying areas of large metro areas. The NAHB reported home building increased 15. 1% in small metro areas/outlying country and 12. 3% in large metro/outlying areas.

A Septic System Primer § A decentralized (or property-based) wastewater treatment system consists of a septic tank and a trench or bed sub-surface wastewater infiltration system (drainfield). The gravel/stone drainfield is designed to operate for decades. § Effluent is piped from the septic tank to a shallow underground trench of stone or gravel. A geofabric or similar material is then placed on top of the trench, so sand, dirt and other contaminants do not enter the clean stone. § Effluent filters through the stone and is then further treated by microbes once it reaches the soil below the gravel/stone trench. The overall footprint of gravel/stone systems is relatively large and may not be suitable for all residential sites or conditions.

Environmental and Other Challenges § More people working at home and children learning at home have caused increased usage of septic systems and more people have decided to move from crowded urban areas to small towns and rural locations. All of which is putting an added burden on septic systems. § Some of those homes in small towns and rural locations may have been used for years, even decades, and don’t satisfy current standards, resulting in leakage of phosphorous into natural water systems and create algal blooms. § Many residential rental properties also have septic systems, which is the responsibility of property owners. They must educate their tenants about avoiding the flushing of certain items and the use of septic additives, which the industry doesn’t recommend.

Advertising Strategies § Targeting the homeowners moving from the cities to the suburbs, small towns and rural areas is an opportunity for septic companies to educate these new homeowners and offer a free system assessment with a qualifying service call. § Next. Gen TV technology is definitely an advertising tool that could benefit septic services companies, allowing them to localize the viewing of their TV commercials to their specific communities/neighborhoods. § Look for an existing booklet or create one describing what not to pour into household drains and flush in toilets to extend the life of septic systems. Use as a free incentive for an appointment and suggest homeowners place a copy in their bathrooms.

New Media Strategies § Use social media to explain how a septic system works (or curate existing content for the company’s Website and social media pages), its necessary maintenance and how to determine when it must be overhauled or replaced. § Ask customers to record and post short videos on social media about their experiences with a septic system for their home, emphasizing the benefits, the lack of smell, how easy it is to maintain, etc. § Use social media to share information about the environmental impact of septic systems and why regular maintenance is required to make a positive contribution to the local ecosystem.