The document provides an overview of economic, political, and social issues from 2011. It discusses topics like the US debt crisis, Occupy Wall Street movement, unemployment, equine industry trends, veterinary market trends, student debt levels, and new technologies like mobile payments and social media. The document aims to inform veterinary professionals about major issues and developments that could impact their practices.

1. The Year in Review
in 61 MINUTES
Kathleen Anderson
Bob Magnus
Mike Pownall

2. The New Economy?
How Does it Affect the
Equine Industry

3. Technology & Social Media
Asset?
Liability?
Or Both?

4. New Grads
Jobs
Debt
Solutions

5. The New Economy
How Does it Affect the
Equine Industry?

6. The Economy

7. Occupy Wall Street

8. USA Debt Crisis
Euro Zone
Unemployment
Global Economy
Italy's New
Premier Offers
BBC News Broad Plan to
Reform Finances
and Spur Growth
Greek govt
readies Spain latest to take hit in
budget, awaits European debt crisis
EU/IMF
inspectors

9. U.S. Public Debt
• 1980 Debt 33.0% of GDP$909 billion
• 1990 Debt 55.9% of GDP$ 3.2 trillion
• 2001 Debt 55.9% of GDP$ 5.7 trillion
Today?

11. Recent US Federal Debt Numbers
Gross Federal Debt Debt Held by Public
FY 2012 $16.7 trillion $10.8 trillion
FY 2011 $15.5 trillion $9.9 trillion
FY 2010 $13.5 trillion $8.2 trillion
FY 2009 $11.9 trillion $6.8 trillion
FY 2008 $10.0 trillion $5.3 trillion
Gross Federal Debt is the total debt owed by the
United States federal government. It comprises “debt
held by the public” and “debt held by federal
government accounts,” such as IOUs owed to the
Social Security trust fund. “Debt held by the public”
includes debt actually held by the public and foreign
governments, and also debt held by the Federal
Reserve System, i.e., monetized as part of the
monetary base.

12. “Total Debt”
Great Depression
250% of GDP
Today
350% of GDP
Government – Corporate - Personal

13. Solutions
Increase Revenue
Decrease Spending
Equine Practice
Combinations of both?
Default
Government
Client Purchasing Behavior
Personal Financial Health

14. Government Spending

15. Top 4 Gov. Expenditures
1. Health Care
2. Pensions
3. Education
4. Defense

16. Top 3 Equine Practice
Expenditures
1. Labor
2. Inventory
3. Insurance

17. Equine Industry Trends
o Increase A/R
• Customers
Future growth
• Vendors / Suppliers
o Labor Reductions
• Support Staff Improve
• Veterinarians Operational
o Price Slashing Efficiencies
o Decrease Hospital Volume / Revenue
o Decrease in discretional spending
o Regional Variations

18. Veterinary Marketplace
Retail Sales
Manufacturing
Distribution
Compounding
OTC
Online

19. The Business of Drugs

20. Fairness to Pet Owners
Act (H.R. 1406)
• Consumer advocacy bill
• Requires veterinarians to write a prescription at the
time of prescribing a product for a companion animal,
regardless of whether or not you would also be
dispensing the product to your client. Veterinarians
would also be required to provide a written disclosure
notifying the pet owner that they may fill the
prescription through you, the prescriber, or another
pharmacy.
AVMA Governmental Relations Division

21. 1. This legislation is unnecessary and redundant.
2. The American Veterinary Medical Association is
supportive of a client’s right to have their prescription
filled at the pharmacy of their choice and encourages
veterinarians to write a prescription when asked by a
client.
3. Pet owners have the freedom to take a prescription to
be filled at the pharmacy of their choice.
4. State laws already govern veterinary prescription writing
making this bill unnecessary.
5. The interests of large retail stores shouldn’t dictate
how veterinarians operate their practice.
AVMA believes that the prescribing veterinarian is the
most appropriate professional to provide guidance and
education when dispensing a prescription product.

22. Mergers & Acquisitions
Service/Support, R&D, Sponsorship, Product
Offerings, New Innovation?

24. Recession Affecting
Animals

26. Internet Sales Tax
Sales Use Tax

27. Medical Marijuana
“pot for pain”
Pot patch for your pooch
developed in Seattle lab
Dogs
Cats
Horses
15 States
6 considering
TETRACAN Medical
Marijuana Patch

29. I’m Right,You’re Wrong!!!!!

31. 2011 AVMA Survey
• 94.8% response rate
• 2483 grads from 28 schools
• Females 1930 (77.8%)
• Males 553 (22.2%)
• Ave Age at graduation = 27.5
• Single = 66%
• Caucasion = 88%

32. USA Student Debt - the
Reality
• Ave debt - US veterinary Students 6.5%
• $125,00 for males
• $134,00 for females
• Ave debt - US college Students
• $135,00 for males
• $145,00 for females
• Ave CDN Vet Student Debt = $52,000

33. USA Veterinarian Starting
Salaries 2011 vs (2010)
Private Clinical Practice % Mean 1st Year $
Mixed animal 9.4(8.3) 62,655(62,327)
Small animal exclusive 23.9(28.2) 69,789(71,462)
Equine 2.5(2) 43,405(38,468)
Ave Starting Salary = $66,000

34. Student Debt
If veterinary students
rack up $252,000 in
In 2017, debt is expected educational debt, they
to climb to $176,000 with will need a starting
a debt-to-salary ratio of salary of $145,717 to
make repayment on a
200 percent.
loan at 15 percent of
their gross monthly
income.

35. Vet College SKA
NonTechnical-Skills, Knowledge, Aptitude
• 100% offer 1 course in SKA
• 5 schools offer a certificate in business skills
Content
50% = Communication
30% = Financial management
20% = Career choices, grief counseling,
animal welfare, regulatory

36. Equine Vet Practice
AAEP Job Bank – Nov 16, 2011
244 Resumes
15 Jobs
16 resumes for each job

39. Internships
• 688/2483 = 27.7% selected internships
• 41.7% = Prerequisite for residency application
• 31.1% = Practice better-quality veterinary medicine
• 16.9% = Needed more training
• 0.7% (5/688) = believed they would make more $$
2010 AVMA Biennial Economic Survey
• Internship does not equal higher salary
Residencies
• 32% of vet students planning on residency
AVMA 2011

40. AAEP Internships
• ~216 offered
• ~210 filled
• Offer date is Friday
before AAEP
convention

41. • 32% vs 23 % of med students in yr 1
• Multi species
• Euthanasia

42. Owner vs Associate Incomes
• $155k vs $85k
• $60.30 vs $30.54/hr
Gross Rev/Income/Hrs
25th perc 75% 90%
Owner
$160K $67K 45 $490K $187K 60 $800 $363K 70
Associate
$150K $61K 50 $380K $91K 65 $560 $139K 75

43. Debt/Ownership
Make it part of the solution not the problem!!

44. KWPN/Royal Dutch Sport Horse
Select Sales 3 year old
stallions
x(1000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total
sales 1,224 730 867 792 950 1,492 1,512 1,145 1,065 967
Average
Price 49 32 38 33 33 57 42 37 34 29
Highest
Price 360 90 145 150 220 430 190 220 90 150

45. North American
Racing Update

46. Situational Analysis
• Declining Foal Crop: Down 13%
2005: 38,361 - 2012: 24,700
• Major Auction Sales: Down 32% (?)
• Handle: Down 37% (?)
• Purses: Down 6% (?)
• Attendance: Down 30% (?)

47. Core of American Racing
is Strong
• Kentucky Derby Attendance up 8%
(2000-2011)
• Breeders Cup Racing up 6% (2006-2010)
o Down 7% in 2011. Zenyatta effect
• Grade I and Grade II Handle is up 23%
(2001-2010)

48. Main Issues of Racing
• Competition from other forms of gambling
• Dilution of the racing product
• The fan base of racing is decreasing 4% per
year
• Animal welfare is a growing concern for the
U.S. Public.

49. 2010 Horse Numbers
US TB live foals
• Down 10% from 2010
• 1973 #s in 2011
Canada STB stallions standing
o 43% decrease since 2007
Canada STB Mares bred
o 29% decrease since 2007

50. Sales In North America
• Keeneland Sales
o 2008 ave $90,984, med $37,000
o 2009 ave $60,734, med $22,000
o 2010 ave $64, 811, med $25,000
o 2011 ave $81,000, med 41%
• Harrisburg Sales
o 1st day ave up 5%
o Record price for yearling

51. The Future
• Sales catalogues apps – Fasig Tipton and Keeneland
• “Live” sales results online
• Myracingoffice.com = online condition books
• Equibase = Racing Yearbook app
• Today’s Racing app
• Stats profile available on Equibase
Facebook page
• Racing Injury Database > 1 million starts (2008-10)

52. Who is interested? (Fans/clients)
What excites them?
Growth Strategies?
• “Boutique meets”
• Wagering platform changes?
• Free-to-play fantasy sports game
• “Social game”
• Online ownership tools and CE

53. Social Networking
• Facebook > 800 million users
o 50% go on daily
o 350 million access on mobile
o 1 in 9 people worldwide has an account
o 48% of Americans
• YouTube uploads 48 hours of video
each MINUTE!
• Twitter delivers 350 billion tweets/day.

54. • 25 million users in 4 weeks
• 40 million now
• Tech crowd
• Interest is leveling

55. Groupon

56. Mobile Computing
Droid/iPhone/Blackberry
• Droid has 43% market share
• Apple 28%
• Blackberry 13%
o >200,000 iPhone Apps
o 38 billion business in 2015

58. Mobile Payments

59. Mobile Payments
NFC Technology

60. QR Codes

61. QR Codes
• NeoReader
• QR Reader

62. Digital Forms

63. Equine ID

64. iPad
• 47 million this year
alone projected
• 4x more than comp
• 97% of tablet traffic
• Kindle Fire is new
competition

65. Kindle Fire
• $199
• Android based
• Content Viewer
• Mixed reviews

66. iPhone

67. The Cloud

68. iCloud

69. Oh Wow! Oh Wow! Oh Wow!

70. Oh Wow! Oh Wow! Oh Wow!

71. Thank You
www.slideshare.net/mpownall
www.equinevetbusiness.com

73. Thank You
www.slideshare.net/mpownall
www.equinevetbusiness.com