1

The Importance of Veterinary Medicine To the Indiana Economy

Dr. Frederic Ouedraogo

&

Dr. Michael R. Dicks

2

The Importance of Veterinary Medicine to the Indiana Economy

I. Introduction

II. Data Sources

2.1. The 2015 IVMA Employment and Compensation Surveys

2.2. Summary Statistics

III. Market for Veterinary Education

3.1. Background: Changing Veterinary Profession

3.2. Supply of Veterinary Education in Indiana

3.3. Benchmarking Analysis of Veterinary Medicine Colleges

3.3.1. Living Expenses

3.3.2. Tuition and Fees

IV. Market for Veterinarians

4.1. Unemployment

4.2. Working Time

4.3. Debt and Income

V. Economic Impact Analysis

5.1. Economic Conditions of Indiana

5.1.1. The Gross State Product

5.1.2. Level of Education

5.1.3. Percentage of People under Poverty

5.1.4. Unemployment in Indiana

5.1.5. Distribution of Income

5.2.Veterinary Business in Indiana

5.3. Methodology for Economic Impact Analysis

5.4. The Input-Output Model and The IMPLAN Model

5.5. Economy Wide Impacts

5.6. Results and Discussion

VI. References

VII. Appendix

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LIST OF FIGURES

Figure 1: Gender Distribution of Survey Respondents, Indiana AVMA, and National Data

Figure 2: Age Distribution of Respondents by Gender

Figure 3: Age Distribution of Respondents by Gender (Indiana AVMA membership)

Figure 4: Race/Ethnicity of Veterinarian

Figure 5: Distribution of Additional Degree Obtained besides the DVM

Figure 6: Marital Status of Respondents

Figure 7: Distribution of Respondents by Graduation Year

Figure 8: Median U.S. Household Income from 2000 to 2014

Figure 9: Satisfaction with College Education

Figure 10: Participation in Internship

Figure 11: Distribution of Respondents by Type of Program during Internship

Figure 12: Distribution of Respondents by Species Focus

Figure 13: Distribution of Respondents by Primary Focus

Figure 14: Level of Satisfaction with Internship Experience

Figure 15: Annual Income Distribution for Veterinarians in Internship Programs

Figure 16: Distribution by Practice Type

Figure 17: Distribution of Preferred Age of Retirement by Gender

Figure 18: Distribution of Work Time by Gender

Figure 19: Preference for Change in Weekly Labor Time

Figure 20: Preference for Change in Weekly Labor Time by Gender

Figure 21: Reasons for Working Fewer Hours per Week

Figure 22: Debt Status Before and After Graduating from Veterinary Medical College

Figure 23: Distribution of Accumulated Debt by Gender

Figure 24: Real GSP (in million 2009 USD) of Indiana (in Millions of 2010 $)

Figure 25: Real GSP (in million 2009 USD) of Indiana and the Rest of the Great Lakes States

Figure 26: Percentage of People in Poverty 3 Year Average

Figure 27: Average Monthly Unemployment Rate (2010 – 2014) in U.S. and Indiana

Figure 28: Distribution of Income in Indiana and the U.S.

Figure 29: Food Animal Industry Overview in Indiana

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LIST OF TABLES

Table 1: Size of Class, Number of Students not Completing DVM and Rate of Desertion

Table 2: NAVLE Pass Rates for the Purdue College of Veterinary Medicine

Table 3: Relative Value of $100 as a Proxy of Cost of Living by State

Table 4: Annual Tuition/Fees of AVMA Accredited Colleges of Veterinary Medicine in the U.S

Table 5: Education Attainment of Population of Age 25 and above (in %)

Table 6: Percent of People under Poverty in the Great Lakes

Table 7: Real Median Income of Households in the Great Lakes

Table 8: Real per Capita Income in the Great Lakes

Table 9: Effects on Employment at Regional and State Level

Table 10: Effects on Labor Income at Regional and State Level

Table 11: Effects on Total Value Added at Regional and State Level

Table 12: Effects on Output at Regional and State Level

Table 13: Effects on State and Local Taxes

Table 14: Effects on Federal Taxes

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I. INTRODUCTION

In collaboration with the American Veterinary Medical Association (AVMA), the Indiana

Veterinary Medical Association (IVMA), at the direction of the IVMA Board of Directors, set

out to determine and assess the economics of the veterinary profession in the state in 2015. The

following report details these findings.

The objectives of this report are:

o to present the current economic situation of the veterinary profession in Indiana

and

o to estimate the economic impacts of the veterinary profession on the state’s

economy.

Based on these objectives, the following findings were made:

o The current economic and social condition of the state of Indiana are favorable for

veterinary businesses.

o Veterinary services generate a total of 12,745 jobs in the state of Indiana with

9,901 being directly related to veterinary services, such as jobs for veterinarians,

veterinary technicians and technologists, and other related staff.

o Around 983 jobs exist due to the existence of the veterinary services sector in

Indiana.

o The profession adds an estimated $1,076,603,121 to the state gross output.

o The total gross compensation for all those employed in the veterinary profession

within the state of Indiana is estimated at $299,150,260.

o The Total Value Added at the state level is estimated at $652,874,177.

o Over $695,896,624 is directly related to the veterinary sector.

o In terms of state and local taxes, the state of Indiana will be collecting an estimated

$281,221 from employee compensation, $19,697,453 from production and

imports, $10,429,509 from households, and $1,999,835 from corporations.

o The federal government will earn $26,491,729 from employee compensation,

$6,658,829 from proprietor income, $2,417,853 from production and imports,

$23,918,613 from households, and $17,824,206 from corporations.

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This report provides an estimate of the measurable impacts of the veterianry services sector

within Indiana on the state’s economy. The report does not provide an estimate of the

nonmeasurable benefits associated with the provision of veterinary services in the state. These

nonmeasurable veterinary services include such services as reduced health care costs associated

with lower incidence of zoonotic diseases, the positive impacts on human health from an

improved human-animal experience, or lower prices of protein resulting from fewer incidence of

morbidity or mortality in food animals. The nonmeasurable impacts may exceed the value of the

measurable impacts provided here.

We thank the AVMA Veterinary Economics Division and all participating veterinarians and

veterinary students for contributing to this report.

IVMA Board of Directors

February, 2016

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II. DATA SOURCES

Data used in this report are from different sources including the 2015 IVMA employment and

compensation surveys. The employment survey was designed to measure both unemployment

and underemployment and to determine the underlying factors affecting these two

macroeconomic variables. The compensation surveys, on the other hand, help understand the

state of the economic health of the veterinary industry and the economic conditions of the actors.

2.1. The 2015 IVMA Employment and Compensation Surveys

Both the employment survey and the compensation survey are annual surveys sent to members

affiliated with the American Veterinary Medical Association (AVMA), the American

Association of Beef Practitioners, and the American College of Laboratory Medicine. In 2015,

the Indiana Veterinary Medical Association (IVMA) took the step to individually assessing the

state of the local veterinary sector. AVMA employment and compensation surveys were used

and refined to be specifically applicable to veterinary medical practitioners in the state of

Indiana. Questions regarding demographics, wellness, experience/skills, and compensation are

randomly ordered in an email-based survey and sent to individuals with Indiana VMA

membership. Subjects are either active practitioners, retired veterinarians, or new graduate

students from one of the accredited veterinary medicine colleges.

The employment survey was initially launched in March, 2015 and sent to all 1,123 IVMA

members. AVMA was conducting a national random stratified sample of veterinarians at the

same time. Because of the removal of the IVMA members in the AVMA national survey and

those members who unsubscribed or failed to renew their membership, an adjustment was made

to the initial sample and 125 people were deleted, leaving a final sample of 998 people to be

surveyed. The questionnaire was then emailed to these veterinarians. After the first week, a

reminder was sent to the 893 people who did not complete or partially completed the survey. A

week after the first reminder, a second reminder was sent out. On March 23, 2015, the survey

was officially closed with a response rate of 27.5 percent. The compensation survey was

distributed to 1,131 members with the same method as in the employment survey. The response

rate for this survey was lower than that of the employment survey. Only 16 percent out of the

1,131 members who received the survey questionnaire submitted a usable response.

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2.2. Summary Statistics

Females make up more than 50 percent of the veterinarian workforce in Indiana

Figure 1: Gender Distribution of Survey Respondents, Indiana AVMA, and National

Data

Gender distribution for the IVMA employment and compensation survey data, the Indiana

AVMA members data, and the national data are presented in Figure 1. More than half of the

respondents are females (51%), which corresponds to the trend observed in gender distribution at

both state and national levels. Women represent the largest share of veterinarians in the U.S

workforce (2015 AVMA Report on Veterianry Markets). Previously considered as a male-

dominated profession, veterinary medicine is increasingly being populated by women, at least in

North America. In the U.S and Canada, seats at veterinary medicine colleges have been 80

percent occupied by females for some time (Lofstedt, 2003). A study by the American

Association of Veterinary Medicine Colleges reveals that between 1970 and 2013, the rate of

enrollment dropped from 89 percent to barely 21 percent for males, whereas that for women

increased from 11 to 79 percent during the same period (AAVMC, 2014). Although there is no

agreement about the causes of the decreasing interest in a veterinary career by men, some

scientists point out the loss of autonomy in the career, the feminization of the profession, and the

reluctance of men toward low or stagnant income jobs are the principle factors that have

precipitated the decline of men in the profession (Slater and Slater. 2000, Smith, 2002).

57%

51% 51%

43%

49% 49%

National Data Indiana AVMA

Membership

Survey Data

Female Male

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Veterinary profession is being feminized

Figure 2: Age Distribution of Respondents by Gender

To support the claim that the number of female veterinarians is expanding while the number of

males is contracting, we plotted (Figure 2) the proportion of males and females by age

(veterinarians younger than 35 years, between 35 and 60 years, and over 60 years). The

distribution clearly shows that more and more women are entering the veterinary market. The

tendancy of more men and few women has reversed with the younger generation of

veterinarians. This fact is supported by the 2013 U.S. Veterinary Workforce Study, which found

that women represent 50 percent of the current workforce with a projected increase to 71 percent

by 2030. The same report reveals that only 22 percent of the new veterinarians entering the

profession are males.

The Indiana AVMA membership survey provides the same trend. Figure 3 shows the distribution

of AVMA members in Indiana (membership here is restricted to recent veterinary medicine

college graduates and regular veterinarian members. Non-veterinarians, veterinary technicians

and technologists, former members, and honor members were not included). From a total of 689

members with equal proportion of men and women, the joint distribution of gender and group of

age shows the same trend of high proportion of female veterinarians in the age group of less than

35 years. Among the members older than 60 years, only 14 percent were females and 86 percent

were males. With the younger generation, the trend has reversed with now 25 percent of men and

76 percent of women. Although the number of women entering the market has sharply increased,

the rate of increase has declined between the middle group and the younger generation.

80%

59%

15%20%

41%

85%

Less than 35 years 35 to 60 years More than 60 years

Females Males

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Figure 3: Age Distribution of Respondents by Gender (Indiana AVMA membership)

- 96% of Veterinarians in Indiana are Caucasians

The distribution of veterinarians by racial/ethnicity group is plotted against the distribution of

total population of Indiana by race and shown in Figure 4. The racial/ethnic distribution of

Indiana veterinarians reflects the distribution found in the overall population of veterinarians.

Caucasians make up 96 percent of veterinarians in Indiana while Caucasians represents 86.1

percent of the state population. All the other ethnicities represent the remaining 13.9 percent of

the Indiana population and only 4 percent of the state’s veterinarians.

Figure 4: Race/Ethnicity of Veterinarian

76%

56%

14%

24%

44%

86%

less than 35 years 35 to 60 years More than 60 years

Female Males

86.10%

9.60% 6.60% 4.40%

96%

1% 1% 2%

White Black or African

American

Hispanic or Latino Others

Indiana Population, 2014

Indiana Veterinarians, 2015

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A Doctor of Veterinary Medicine (DVM) professional education program provides educational

and clinical training to students interested in animal health care. The DVM is typically a four-

year program in an AVMA-accredited veterinary medical school. A major requirement is that

aspiring veterinarians should obtain a minimum of bachelors degree prior to applying for a DVM

college. Besides their DVM degree, many veterinarians complete additional degrees, which open

more opportunities, strengthening their career, and supporting the profession. Figure 5 presents

the distribution of IVMA members by degree obtained in addition to the DVM. Over half of the

DVM graduates (54 percent) have obtained a second bachelors degree, 11 percent a master’s

degree, and 6 percent a PhD.

Figure 5: Distribution of Additional Degree Obtained besides the DVM

The educational attainment of the U.S. population 25 years and over shows the same trend. A

bachelors degree represents more than half of the population who have at least a degree and the

highest degree (PhD) represents a small proportion of the population (6% for IVMA members

and 2% for the U.S population of age 25 and over).

Figure 6 shows that 83 percent of respondents are married, 9 percent are single, and the rest are

either divorced, widowed or in partnerships. For a quick reminder, the state of Indiana counts

6,483,802 people (Population Demographics for Indiana 2014 and 2015), composed of 49

percent of men and 51 percent of women. The median age for both men and women is 37 years,

and 1,566,657 people are under 18 years. The 2010 census reported a total of 2,502,154 occupied

households, with an average size of 2.52 persons. Married couples represent the majority of the

households with almost 50 percent. 27 percent of households are occupied by people living

alone, while single parents represent 10 percent and 7 percent are unmarried partners’

households.

PhD

6%

Master's

Degree

11%

Bachelors

Degree

54%Other Degree

0%

No Degree

29%

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Figure 6: Marital Status of Respondents

Figure 7: Distribution of Respondents by Graduation Year

In Figure 7 the distribution of the respondents by graduation year is summarized and compared

to the graduation year of all AVMA members. The mode of the distribution of the graduation

year for IVMA members who responded to the survey is in the interval “before 1980” whereas,

the mode for that of AVMA members in the interval “2010 – 2018”. Thus, Indiana veterinarians

have a higher concentration of older veterinarians than the national average for veterinarians and

will require a larger percentage replacement over the next decade.

0%

30%

60%

90%

Married Single Divorced Widowed Partner

9%

16%19%

27%30%31%

14% 14%16%

25%

Before 1980 1980 - 1989 1990 - 1999 2000 - 2009 2010 - 2018

AVMA IVMA IVMA data for this group is

only from 2010 to 2014.

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III. MARKET FOR VETERINARY EDUCATION

3.1. Changing Veterinary Profession

Many factors have contributed to the expansion of the veterinary industry in the U.S. Among

those factors, change in human perception toward animals, increasing demand for pets, and the

promising economic situation are the most important factors. To begin our analysis of the market

for veterinary education, we first consider how the profession may change in the future.

- Changing human attitude toward animals

A change in human attitude toward animals is changing the face of the profession. Animals such

as dogs are escaping from their traditional role of “house guards” to become the “four-legged

members of the family”. The notion of “constitutive property” has brought a stronger

relationship between the pet and its owner. Losing a pet is now as painful as losing a valuable

property (Nunalee and Weedon, 2004). Animals are more important to humans than they were

before and so are the veterinary services. Pritchard (1994) concludes that: “As society assigns

higher values to animals, it places higher social value on veterinary medicine and increased

economic value on veterinary services (p.2)”.

Consequently, better education for future practitioners and improvements in the profession

(mainly compensation for veterinarians) will be required to meet the complex demand for the

changing world. The mean annual wage of all U.S. veterinarians who graduated in 2009 and

2013 was around $74,200, according to the 2015 AVMA employment survey. More specifically,

women in this sample were receiving a mean annual wage of $71,714 whereas their male

counterparts were earning an annual wage of $83,538 on average, corresponding to a wage gap

of about 16 percent. This grand mean wage is relatively lower compared to other professions and

with the shift of gender being observed – an increase in the number of females outpacing males

in the profession- it might be true that this wage will decline or remain stagnant to adjust to

women compensation.

- Increasing demand for pets

Demand for pets has drastically increased in the United States in the last two decades. Today,

approximately 37 to 47 percent of households in the U.S own a pet (ASPCA, 2015). As demand

for pets increases, the demand for veterinary services also increases. According to the U.S 2012

pet ownership and demographics sourcebook1, 70 million pet dogs and about 74 million pet cats

were raised in the U.S. Today, the number of dogs is about 80 millions and that of cats around 96

million (U.S. Pet Ownership & Demographics Sourcebook, 2012).

- The expected economic growth

1 U.S. Pet Ownership & Demographics Sourcebook, 2012

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The projected strong growth in the U.S Gross Domestic Product (GDP) over the near term is

expected to increase the demand for veterinary services. An increase in the GDP leads to

improved consumer purchasing power, ceteris paribus. As their income increases, households

might logically increase their consumption for goods and services, including veterinary services.

The median household income for the U.S population has been increasing since 2013 but has

not yet reached the pre-recession level of roughly $57,500 per year (Figure 8). This reduction in

median income over the extended time period reduces the demand for all goods and services.

U.S. Census Bureau

Figure 8: Median U.S. Household Income from 2000 to 2014

3.2. Supply of Veterinary Education in Indiana

Veterinary education is provided by accredited schools across the U.S. and overseas.

Accreditation is granted by the American Veterinary Medical Association Council of Education

(COE). The COE evaluates each school according to specific standards. A total of 30 AVMA-

accredited colleges operate nationwide. Another 19 AVMA-accredited colleges are located in

other countries such as Canada, Australia, France, England, Ireland, Mexico, Netherlands, New

Zealand, Scotland, and West Indies. These U.S. accredited foreign colleges contribute to the

supply of qualified veterinarians into the U.S domestic market. According to the U.S. Bureau of

Labor Statistics, a 12 percent increase in employment of veterinarians is expected between 2012

and 2022. This means adding roughly 8,400 new certified veterinarians to the 70,300 identified

in 2012.

52,000

53,000

54,000

55,000

56,000

57,000

58,000

2000 2002 2004 2006 2008 2010 2012 2014

Median Household Income (in$)

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In 2014, a total of 102,583 active and newly graduated veterinarians were operating across the

U.S. (Market Research Statistics Report, 2014). Most of these veterinarians are domestic

graduates, but a non-negligeable portion of this total comes from abroad. The state of Indiana

hosts one AVMA-accredited College of Veterinary Medicine (Purdue University) with an

approximated class size of 70 students. Since 1959, Purdue University has supplied more than

3,000 veterinarians to the U.S. Veterinarians market. Along with other colleges of veterinary

medicine, Purdue University has supplied the local market with qualified veterinarians.

According to the Bureau of Labor Statistics (BLS), the total number of veterinarians employed in

Indiana ranges between 920 and 1,550 veterinarians in 2014. AVMA maintains a database of

veterinary graduates and has a record of 2258 veterinarians in the state. However, only 1572 of

these have indicated that they are “active” in the veterinary profession. The remaining numbers

may be working in other non-veterinary professions, be disabled, retired, or have not indicated

their current status. However, we have no estimate for the number of full time equivalent (FTE)

veterinarians that exist in the state, or where those FTEs might reside. The BLS statistics do not

include veterinary practice owners, only veterinarians that are employed (labor).

Purdue University constitutes the largest supplier of veterinarians to the Indiana market. More

than 70 percent of the AVMA/IVMA employment survey respondents graduated from the state

veterinary medical school. Almost half of the rest graduated from the neighboring states, namely

Ohio, Illinois, Michigan, and Wisconsin.

3.3. Benchmarking Analysis of Veterinary Medical Schools

The Purdue University College of Veterinary Medicine (PCVM) is one

of the 30 accredited colleges of veterinary medicine in the country. The

college is located in Northwestern Indiana in a metropolitan area. The

City of West Lafayette hosts Purdue University and its college of

veterinary medicine.

The PCVM is fully accredited by the AVMA since 1959 and renewed

accreditation in 2011 that will remain valid through 2018. Besides the

DVM, the college of veterinary medicine offers associate and Bachelor’s degrees in veterinary

technology.

The average class size for a DVM program is about 70 seats and the majority of admitted

students become veterinarians. Table 1 reports the numbers of students admitted, the number of

students graduating without completing the doctoral degree, and the rate of students who

abandoned the program for the last seven years. Each class has approximately as many resident

students as non-resident students, which places Purdue College of Veterinary Medicine among

the universities with the highest out-of-state acceptance rate.

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Table 1: Size of Class, Number of Students not Completing DVM and Rate of

Desertion

Graduating Class Number of

Students Admitted

Number of

Students Not

Completing

DVM

Absolute

Attrition*

2009 68 2 2.9%

2010 70 10 14.3%

2011 70 2 2.9%

2012 70 3 4.3%

2013 70 4 5.7%

2014 70 3 4.3%

2015 84 4 4.8%

*Rate of desertion: Source: Purdue University College of Veterinary Medicine

To practice veterinary medicine, students from U.S. accredited veterinary colleges must also pass

the North American Veterinary Licensing Exam (NAVLE). The pass rate for graduates of

Purdue University over the last 10 years is consistently higher than the minimum rate of 80

percent set by the AVMA’s Council on Education (Table 2).

Table 2: NAVLE Pass Rates for the Purdue College of Veterinary Medicine

Class of: Class Size

Number of

Students Passing

PVM Ultimate Pass

Rate Percentage*

2006 58 57 98%

2007 69 69 100%

2008 63 63 100%

2009 63 63 100%

2010 58 57 98%

2011 71 71 100%

2012 67 63 94%

2013 65 63 97%

2014 67 66 99%

2015 77 76 99%

Source: Purdue University College of Veterinary Medicine

The PCVM produced its first graduate veterinarians in 1963. Before 1963, students from Indiana

who were willing to pursue a career in the veterinary medical sector were required to move out

of their home state to gain an appropriate education. However, even after the college was

established in 1959, there is still a migration of veterinary students from Indiana to other states.

These students, besides leaving their home cities, are facing out-of-state tuition. There is a need

to inform decision-makers about the factors that influence students to voluntarily accept to pay

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out-of-state tuition even when it is higher than the in-state tuition of Purdue University. This

benchmarking analysis will focus on factors such as difference in living expenses across cities,

tuition and fees, quality of education, and programs offered.

3.3.1. Living Expenses

The cost of living varies considerably by state and this can best be illustrated by examining how

much money is required in each state to be equivalent to a $100 average expenditure for all

states. The relative value of $100 provides this measure for each state and ranges from a high

cost state such as New York ($100 will buy only $96.66 of the goods that could be purchased on

a national average) to a low cost of living in Jackson, Mississippi ($100 will buy $115.74 of

goods that could be purchased on average in the U.S.). The cost of living in Indiana is in the

middle quantile (See Table 3). A $1.00 taken from Indiana is worth ¢90 and ¢80, respectively, in

Illinois and in New York. In other words, students will spend less money for the same

commodity in Indiana than in Illinois, New York, California, or Michigan. If living expenses

were the only factors that could explain student mobility, we would expect rational students to

move from Illinois, Georgia, Minnesota, or North Carolina to Indiana to lower their cost of

education and not the other way around since the dollar is more valuable in Indiana than

surrounding states. However, states such as Mississippi, Missouri and Oklahoma have a lower

cost of living than Indiana and thus students might find it cheaper to obtain an education in these

states rather than Indiana.

Table 3: Relative Value of $100 as a Proxy of Cost of Li ving by State

State ID Relative Value

of $100 State ID

Relative Value

of $100

Alabama AL $113.51 Missouri MO $113.51

California CA $ 88.57 Mississippi MS $115.74

Colorado CO $ 98.43 North Carolina NC $109.17

Florida FL $101.21 New York NY $ 86.66

Georgia GA $108.70 Ohio OH $112.11

Iowa IA $111.73 Oklahoma OK $111.23

Illinois IL $ 99.40 Oregon OR $101.21

Indiana IN $109.77 Pennsylvania PA $101.32

Kansas KS $111.23 Tennessee TN $110.25

Louisiana LA $109.41 Texas TX $103.63

Massachusetts MA $ 93.28 Virginia VA $ 96.90

Michigan MI $105.93 Washington WA $ 96.90

Minnesota MN $102.56 Wisconsin WI $107.64

Source: Bureau of Economic Analysis, Regional Price Parities, 2014

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3.3.2. Tuition and Fees

The tuition/fees for the 30 schools of veterinary medicine in the U.S. range from $16,546 to

$49,595 for residents and $25,899 to $63,291 for non-residents. North Carolina State University is

the cheapest college in term of tuition/fees, but the change in tuition between 1999 and 2014 is

higher for North Carolina than it is for the PCVM (AVMA Report, 2015).

For the school year 2014/2015, the estimated tuition for a first-year resident student attending

Purdue University’s College of Veterinary Medicine was $19,418 and $44,246 for his non-

resident classmate. These tuition/fees remain constant for the first three years, but increased to

$20,742 and $45,615, respectively, for the residents and the non-residents during their fourth

year. Purdue University is at the lower quartile in terms of tuition and the change in tuition

between 1999 and 2014 has been relatively low. There is no state where the out-of-state tuition

is not so large as to overrun any cost savings from cheaper living costs. Indiana state residents

cannot be selecting alternative veterinary colleges based on a cost reduction strategy. Either the

Indiana resident chose an out-of-state DVM program because it had some quality or program that

was deemed not to exist in the PVMC or they were not selected for admission at PVMC and had

to select an alternative DVM program.

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Table 4: Annual Tuition/Fees of AVMA Accredited Colleges of Veterinary Medicine in the U.S

Tuition/Fees

# Seats Resident Non- Resident # Seats Resident Non- Resident

Tuskegee University 70 21,720 36,270 Kansas State University 110 23,176 50,464

Oklahoma State University 82 18,340 39,620 UT Vet School 85 24,022 52,122

North Carolina State University 100 16,546 39,599 University of Illinois 120 29,604 47,068

Mississippi State University 85 18,782 43,982 Colorado State University 145 26, 451 54,269

Auburn University 118 17,858 42, 382 University of Florida 112 28,630 45,500

University of Georgia 114 18,000 44,320 Michigan State University 113 27,048 52,206

University of Wisconsin 97 19,055 25,899 Ohio State Veterinary School 180 29,163 63,291

Purdue University 84 19,418 44,246 University of Minnesota 102 33,800 58,346

Louisiana State University 92 19,552 45,352 Cornell University 97 30,725 45,575

Iowa State University 149 20,014 44,768 University of California 138 34,213 46,458

Oregon State University 72 21,319 41,200 University of Pennsylvania 120 39,866 49,836

Washington State University 133 22,352 53,406 Tufts University 98 41,940 46,120

University of Missouri 120 22,522 52,200 W. University of Health Sc. 100 49,595 49,595

Texas A&M University 132 20,348 31,148 Lincoln Memorial University 40,241 40,241

Virginia Tech 110 21,796 47,458

Source: https://web.stanford.edu/group/supvc/cgi-bin/blog/wp-content/uploads/2014/11/USA-Veterinary-Schools-tuition-table.pdf

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IV. MARKET FOR VETERINARIANS

4.1. Unemployment

“A major benefit of education is the lower risk of unemployment at higher educational levels.”

Mincer (1991)

Survey subjects were asked to rate how well their education has prepared them to be

veterinarians. Their responses were summarized in Figure 9. About 50 percent of respondents

acknowledge that their education they received from the veterinary medical college had prepared

them appropriately for the veterinary career with 32.5 percent indicting that the education has

been extremely useful for them. Only a tiny proportion of the respondents (0.3%) believe that

their education did not, at all, lead to the expected results.

Figure 9: Satisfaction with College Education

At the end of their DVM program, students have options to enter into an internship or a

residency for a real world practice. However, only a small proportion of students went through

this step. More than 90 percent of respondents from the PCVM said they have never participated

in an internship before they entered the profession (Figure 10). About 86 percent of respondents

claim to have never participated in a residency. This might be a sign that the demand for

veterinarians is high, that upon graduation, students obtain a permanent a job in lieu of an

internship or residency. This statement is supported by the fact that more than 79 percent of the

respondents indicate that they found their job within 3 months in the job market. PCVM ranks

low (15.5%) in the number of graduates seeking internships or residencies compared to other US

DVM programs. Nationally, 25 percent of graduates seek these options and some DVM

programs have more than 50 percent of their students pursue internships and residencies.

Another possible explanation is that PCVM students don’t feel that they need additional training.

.3% 1.0%

16.4%

49.7%

32.5%

Not at all well Not so well Somewhat well Very well Extremely well

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Figure 10: Participation in Internship

The three types of internship programs are academic, private practice, and private referral

practice. About 43 percent of those who had participated in an internship chose the private

practice and the others are equally distributed between the other two options as reported in

Figure 11.

Figure 11: Distribution of Respondents by Type of Program during Internship

In terms of species focus, the majority of respondents who participated in an internship, did so in

companion animal practice (42.9%) followed by equine practice (38.1%) and food animal

practice (9.5%). The general rotating internship, with more than 71 percent, is the leading

primary focus of those who participated in an internship.

1.7%7.3%

90.9%

Currently participating in

an internship

Participated in an

internship in the past

Have not participated in

an internship

28.6%

42.9%

28.6%

Private referral practice

Private practice

Academic

22

Figure 12: Distribution of Respondents by Species Focus

Figure 13: Distribution of Respondents by Primary Focus

For most graduates, the internship was a mostly rewarding experience, with 76.2 percent

indicating their internship experience was at least somewhat satisfactory and only 4.8 percent

were dissatisfied with their internship experience (Figure 14).

42.9%

38.1%

9.5%

4.8%

4.8%

Companion animal

Equine

Food animal

Mixed animal

Large animal

71.4%

9.5%

4.8%

14.3%

General rotating

Medicine

Surgery

Other

23

Figure 14: Level of Satisfaction with Internship Experience

Besides the practical experience granted to new veterinarians, an internship is usually paid and

the distribution of annual internship stipend/salary is presented in Figure 15. The annual income

ranges from as low as $8,000 up to $60,000. 43 percent fall in the category of annual income

between $10,000 and $19,999. 92 percent of veterinarians had an annual internship salary at

almost $40,000.

Figure 15: Annual Income Distribution for Veterinarians in Internship Programs

4.8%

9.5% 9.5%

47.6%

28.6%

Very

dissatisfied

Somewhat

dissatisfied

Neither

satisfied nor

dissatisfied

Somewhat

satisfied

Very satisfied

4%

43%

30%

13%

4% 4%

Less than

$10,000

$10,000 t0

$19,999

$20,000 to

$29,999

$30,000 to

$39,999

$40,000 to

$50,000

More than

$50,000

24

The distribution of the survey respondents (IVMA members) and the Indiana AVMA members

by practice type is reported in Figure 16. Companion animal is the leading practice type, both for

Indiana AVMA members and the survey respondents. 65 percent of the survey respondents are

companion animal practitioners. Equine practice is the least represented with only 1 percent of

respondents.

Figure 16: Distribution by Practice Type

7%

47%

2%

2%

2%

2%

5%

1%

32%

4%

65%

8%

1%

7%

3%

3%

3%

6%

Food Animal

Companion Animal

Mixed Animal

Equine

College or University

Government

Industry

No Profit Org.

Employment Unknown.

Employment Survey I-AVMA Membership

25

Retirement is an important component of employment analysis. Early retirement opens more

employment opportunities for new veterinarians if demand for veterinarians does not change

substantially over time. Retirement age typically ranges between 60 and 70 years in the U.S.

More than 80 percent of respondents fall in this category. Plotting the distribution by gender

enables us to see that males desire to stay at work longer than females. About 17 percent of

males said they would like to remain working after 70 years.

Figure 17: Distribution of Preferred Age of Retirement by Gender

4.2. Working Time/Preference for Increased Work Time

The amount of weekly work time is also important in monitoring the employment situation in a

state. If more people are willing to work more hours per week than they currently do, it is a

signal that the region might be experiencing underemployment or an indication that the market

for veterinarians is still below previous high points. On the other hand, if there are more people

willing to work less, for less compensation, this might suggest that practices are generating

positive profits and therefore, more veterinarians may still be needed in the area.

Currently, 64 percent of males are working more than 40 hours per week whereas only 47

percent of females are working more than 40 hours per week. The majority of the respondents

are satisfied with the current work hours (See Figure 19). More than 72 percent of respondents

prefer keeping the same number of hours as long as their salary remains the same. 7.8 percent

reveal they are willing to work more hours, conditional on an increase in their salary.

The distribution of the desired numbered work hours per week is illustrated in Figure 20. 76

percent of males and 69 percent of females said they would like to keep their current weekly

work time volume with no change in their compensation. 10 percent of females would prefer an

increase in their work time and only 6 percent of males are favorable for this option. By contrast,

21 percent of females want to see their weekly work time reduced by a few hours and around 20

percent of males are also considering such option.

3%

80%

17%10%

84%

6%

Less than 60 years 60 to 70 years More than70 years

Male Female

26

Figure 18: Distribution of Work Time by Gender

This strong preference, by those not satisfied with their current hourly work week, for fewer

hours with less compensation, suggests that the market is in search of more veterinarians. While

a few hours less worked by a veterinarian in one practice may not be sufficient to hire another

full time veterinarian, many such people suggest either the need for the practice owner to

reevaluate their hours of operation or the need for more veterinary hospitals.

Figure 19: Preference for Change in Weekly Labor Time

3%

33%

64%

4%

48% 47%

Less than 20 hours/week 20 to 40 hours/week More than 40 hours/week

Male Female

20.0%

7.8%

72.2%

Work fewer hours per week for a lower

level of total compensation

Work more hours per week for a higher

level of total compensation

Work the same number of hours per

week, with no change to my current

compensation

27

Figure 20: Preference for Change in Weekly Labor Time by Gender Veterinarians

in Indiana who preferred to work fewer hours do so because they are nearing

retirement (35%), taking care of children (18.5%) or other reasons (Figure 21).

Figure 21: Reasons for Working Fewer Hours per Week

Two major demographic changes in the profession nationally and within Indiana will increase

the demand for veterinarians over the next decade. As already mentioned, a large component of

Indiana veterinarians is nearing retirement and replacements will be required. A second major

change is the proportion of women entering practice, the majority wishing to work fewer hours.

Nationally the average hourly work week for men is 47 hours, but only 41 for women. And,

more women want to work less for less compensation than more hours for more compensation.

This suggests that as male veterinarians retire they will be replaced by women and thus more

21%

10%

69%

19%

6%

76%

Work fewer hours per week for

a lower level of total

compensation

Work more hours per week for

a higher level of total

compensation

Work the same number of hours

per week, with no change to my

current compensation

Female Male

5.6%

18.5%

35.2%

7.4%

33.3%

Medical

reasons

Taking care of

children

Nearing

retirement

Pursuing other

careers

Other

28

women will need to be employed than the number of men retiring to provide the same number of

total hours of veterinary service.

4.3. Debt and Income

Debt and Education

The distribution of debt is presented in Figure 22. Survey respondents were asked whether or not

they have accumulated any educational debt (to fund their veterinary college costs). Initially

(before entering the veterinary college), 71 percent of respondents indicate that they had not

accumulated any debt while 29 percent had accumulated debt. Upon graduation from veterinary

college however, 74 percent of newly graduated Indiana veterinarians had accumulated debt

while 26 percent finish their education without carrying debt.

Figure 22: Debt Status Before and After Graduating from Veterinary Medical

College

Figure 23 reports the distribution of accumulated debt by gender. More males (75%) than

females (67%) had no debt before entering veterinary school while, after graduation from

veterinary college, 81 percent of females accumulated debt versus only 68 percent of males.

This presents a growing problem for the profession. As each class of students contains a higher

percent of women, the average debt load of veterinary graduates will increase. Not only do

women have a higher probability of having debt, on average they have more debt than their male

counterparts.

71%

29%26%

74%

No debt Debt

Before entering Vet. College After graduating from Vet. college

29

Figure 23: Distribution of Accumulated Debt by Gender

5. ECONOMIC IMPACTS ANALYSIS (EIA)

5.1. Economic Conditions of Indiana

The performance of the veterinary market, as with any other market, depends on the economic

conditions of the functional region (county, region, state). Willingness to pay for goods and

services are highly related to the income level of households and goods and services for pets and

farm animals offer no exception. Some demographic characteristics are also essential for making

inferences about the opportunity for veterinary services in a given region. Communities with a

high proportion of educated people, for instance, might know more about pets’ rights and care

more about their well-being than communities with a high illiteracy rate. The frequency of

veterinarian visits for a low income community might be low as compared to communities with

relatively high living standards.

The American Society for the Prevention of Cruelty to Animals (ASPCA) estimates the average

annual pet care cost to be around $580 for a small dog, $695 to $875 for a medium to large dog,

and about $670 for a cat. Food animal owners might be more aware of the underlying costs of

taking care of animals since agricultural businesses typically have a detailed budget that

enumerates the cost of all activities including veterinary services, animal food and feed. In

contrast, because pet ownership is not a profit maximizing activity, taking care of a pet is less a

business than a family decision. It does not require a pre-planned budget and a health-related

issue can occur at any time, necessitating the owner to be ready at all times to obtain veterinarian

care for sickness or injuries to their pets. With the development of animal welfare laws, leaving a

pet untreated or in low care might result in penalties or lawsuit.

This being said, it is important to evaluate the economic and social condition of Indiana in order

to make an objective conclusion about the future of the market and therefore, the opportunity for

veterinary business. To begin our analysis, we look at some economic indicators important to

understand the economic and social context of Indiana. These objective indicators include, but

75%

25%32%

68%67%

33%

19%

81%

No debt before Vet

School

Debt before Vet

school

No debt After Vet

school

Debt after Vet

school

Male Female

30

are not limited to, the Gross State Product (GSP), the level of education, the percent of the

population under the poverty line, the unemployment rate, and the distribution of income.

5.1.1. Gross State Product (GSP)

The Gross State Product measures the monetary value of all final goods and services produced in

a state in a given period of time. One way the GSP is captured is to sum the “value-added” at

each stage of production and for all production units in the state. In 2014, Indiana was ranked

16th in the United States in terms of GSP with roughly $317.8 billion (BEA, 2015). The rate of

increase in Indiana’s GSP was about twice as fast as that of the US in 2010, but started lagging

behind the national average growth rate in 2013. This trend is projected to remain unchanged at

least until 2017. Nevertheless, the Indiana Economic Outlook suggests that near term economic

growth will continue to be favorable with all sectors of the economy showing growth for the next

few years.

Although the GSP does not tell much about the overall well-being of the state, it gives insights

about the state of the economic activity in a given region. The top five industries that contributed

to the GSP of Indiana are the manufacturing sector (29.5%), health care and social assistance

(7.9%), retail trade (5.9%), wholesale trade (5.3%), and the finance and insurance sector (4.6%).

In total, the private industries contribute up to 90% of the total GSP of Indiana. Figure 24 and

Figure 25 show the quarterly real GSP (in million dollars) of Indiana and the real GSP (in

million dollars) of each state in the Great Lakes, respectively. The real GSP shows an increase

over the most recent four year period. The GSP in 2010 USD increased from $282,954 million in

2010 to $345,068 million in 2014, corresponding to a 20 percent increase in four years. The GSP

of Indiana appears to be the second lowest in the Great Lakes regions. This does not mean

Indiana is lagging behind other states in the regions in terms of economic performance. As stated

above, the GSP only quantifies the final value of the production in the state. It does not provide a

conclusion about the well-being of the economy. However, we can conclude that the overall

economic health of Indiana is improving as a result of the increasing GSP. When all sectors of

the economy start expanding production, it is a signal that consumption (demand) is increasing.

As production increases, increase in compensation might follow and because their compensation

has improved, their purchasing power increases. Because increasing production is currently

occurring in Indiana, the economic situation for the next few years appears to be a positive note

for businesses, including the veterinary businesses.

31

Source: U.S. Bureau of Economic Analysis

Figure 24: Real GSP (in million 2009 USD) of Indiana (in Millions of 2010 $)

Source: U.S. Bureau of Economic Analysis

Figure 25: Real GSP (in million 2009 USD) of Indiana and the Rest of the Great

Lakes States

260,000

265,000

270,000

275,000

280,000

285,000

290,000

295,000

2010:I

2010:I

I

2010:I

II

2010:I

V

2011:I

2011:I

I

2011:I

II

2011:I

V

2012:I

2012:I

I

2012:I

II

2012:I

V

2013:I

2013:I

I

2013:I

II

20

13:I

V

2014:I

2014:I

I

2014:I

II

2014:I

V

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Indiana Illinois Michigan Ohio Wisconsin

32

5.1.2. Level of education

The level of education in Indiana is similar to what occurs in the U.S, generally. According to the

United States Census Bureau, in 2011, people with a high school diploma, bachelors degree, and

advanced degree in Indiana represent 86.6 percent, 22.5 percent, and 8.1 percent, respectively.

Table 5 shows the education attainment in Indiana for the last 3 years. The percentage of people

with at least a bachelors degree is slightly lower than that of the national average, but the

proportion of people who graduate from high school exceeds the national average. The

percentage of people with less than a 9th grade education was about 4 percent the last three years

and is lower than the national average of 6 percent.

There is no scientific work that supports the hypothesis that education has a direct incidence in

the probability that a given household will be a pet owner, but because a higher education is

associated with a higher income, it is likely that a community with a high level of education

might have greater demands for veterinary services than those of lower income communities, if,

of course, we control for other factors such as religion-related factors.

Table 5: Education Attainment of Population of Age 25 and above (in %)

Education Attainment 2011 2012 2013

Indiana US Indiana US Indiana US

Less than 9th grade 4.2 6.1 4.2 6.0 4.2 5.9

9th grader to 12th grade, no diploma 9.1 8.5 8.8 8.2 8.6 8.0

High school graduate 35.8 28.6 35.4 28.2 35.2 28.1

Some college, no degree 20.6 21.0 20.9 21.3 20.9 21.2

Associates degree 7.5 7.6 7.7 7.7 7.9 7.8

Bachelors degree 14.6 17.7 14.7 17.9 14.8 18.0

Graduate or professional degree 8.1 10.5 8.2 10.6 8.4 10.8

5.1.3. Percentage of People under Poverty

Eight years after the Great Recession and despite the recovery, poverty is still above the

prerecession levels in almost all states in the United States. With its 15.9 percent poverty rate,

Indiana has the second lowest rate in the Great Lakes after Illinois and slightly above the national

average. However, the rate of increase in poverty since 2000 is somewhat alarming for Indiana.

While the national poverty increase has been on average 30 percent, for Indiana, the poverty rate

has reached 57 percent, almost twice the national average. Figure 26 shows that the percentage

of the population below the poverty line has been high in the last five years with a spike in 2010.

The decline in the poverty rate began in 2012 and is expected to drop for the next 5 years. The

proportion of people below the poverty threshold 2009-2013 in Indiana is equal to the national

33

average of 15.4 percent. Table 6 shows the percent of people in poverty in the Great Lakes from

2011 to 2013. The national average is around 15 percent for all years. In Indiana, it has been

above the national average in 2011 and 2012, but has dropped to 11 percent in 2013. With the

exception of Wisconsin, Indiana has the lowest rate in terms of population in poverty.

Source: STATS Indiana, using U.S. Census Bureau data

Figure 26: Percentage of People in Poverty 3 Year Average

Table 6: Percent of People under Poverty in the Great Lakes

STATE 2013 2012 2011

Percent Std. error Percent Std. error Percent Std. error

United States 14.5 0.2 15.0 0.2 15.0 0.2

Illinois 13.3 0.9 12.6 0.8 14.2 0.9

Indiana 11.6 1.2 15.2 1.1 15.6 1.3

Michigan 14.5 1.2 13.7 1.0 15.0 1.0

Ohio 13.7 1.2 15.4 1.1 15.1 1.2

Wisconsin 11.0 1.2 11.4 0.9 13.1 1.1 Source: U.S. Bureau of the Census

5.1.4. Unemployment in Indiana

Since the end of the recent recession of 2008, the unemployment rate in Indiana, as in the rest of

the U.S., has shown a continuous decline from more than 10 percent in 2010 to barely 6 percent

in 2014. The rate of unemployment in Indiana (4.2%) is lower than that of the national average

(5.0%).

0

2

4

6

8

10

12

14

16

18

2000 2003 2006 2009 2012 2015

Per

centa

ge

of

Peo

ple

in P

over

ty

34

Source: Indiana Business Research Center

Figure 27: Average Monthly Unemployment Rate (2010 – 2014) in U.S. and

Indiana

5.1.5. Distribution of Income

Source: American Community Survey, 2009

Figure 28: Distribution of Income in Indiana and the U.S.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jul-09 Nov-10 Apr-12 Aug-13 Dec-14

Unem

plo

ym

ent

rate

s (i

n%

)

USA Indiana

26%

29%

20%

12%10%

3% 2%

25% 25%

18%

12% 12%

4% 4%

Under $25,000 $25,000 to

$49,999

$50,000 to

$74,999

$75,000 to

$99,999

$100,000 to

$149,999

$150,000 to

$199,999

$200,000 or

more

Indiana USA

35

The distribution of income in Indiana and in the U.S is summarized in Figure 28. The majority of

Hoosiers fall between $25,000 and $49,999 per year. Only 27 percent of the households earn

more than $74,999 per year. At the national level, 32 percent receive on average $75,000 or more

per year. Table 7 reports the real median household income for each state of the Great Lakes

from 2010 to 2014 and Table 8 reports the real per capita income in each state of the region.

Indiana is at the lower end of median household income for the region. The five year-average is

about $53,440 in the Great Lakes, but only $48,700 in Indiana.

Table 7: Real Median Income of Households in the Great Lakes

2010 2011 2012 2013 2014

United

States 54,343 53,162 52,970 53,105 53,657

Illinois 57,520 56,037 56,853 57,130 57,444

Indiana 48,444 48,884 48,436 48,307 49,446

Michigan 49,312 48,403 48,318 49,063 49,847

Ohio 48,962 48,158 48,287 48,868 49,308

Wisconsin 53,208 53,049 52,648 52,309 52,622

U.S. Census Bureau

Table 8: Real per Capita Income in the Great Lakes

2010 2011 2012 2013 2014

United

States 28,297 28,115 28,169 28,645 28,889

Illinois 29,671 29,348 29,636 30,345 30,417

Indiana 24,764 24,763 24,642 25,202 25,140

Michigan 25,650 25,694 25,854 26,342 26,613

Ohio 26,034 26,053 26,237 26,785 26,937

Wisconsin 27,644 27,592 27,834 27,897 28,213

U.S. Census Bureau

The per capita personal income in Indiana is lower than the average in the Great Lakes regions.

With $24,900, Indiana has the lowest per capita personal income among the states of the region.

In 2014, the per capita personal income of Indiana was estimated at $25,140, corresponding to 86

percent of the national average.

5.2. Veterinary Businesses in Indiana

The Barnes Report, 2013- Industry and Market Series, provides a comprehensive overview of the

veterinary services industry in the United States. The industry is defined in the report as the

36

combined sectors of licensed veterinary practices (veterinary medicine predominantly) and all

other businesses that supply services and goods to the veterinary practitioners.

The veterinary profession itself is divided into two major career paths: the private practice and

the public/corporate practice. The private practice emcompasses private veterinary businesses

with a principle focus on large animals, small animals, or both. Veterinarians in private practice

have two options: either a general practice or a specialty field (aquatic animal medicine,

emergency animal medicine, marine biology, ophthalmology, orthopedics, or wildlife animal

medicine). On the other hand, public practice includes opportunities such as Federal government,

academic research, public health, and food supply medicine. In short, it encompasses all

veterinarians who are employed by the federal/state/local government agencies, the research

institutes, or the industries.

The private practice is typically divided into to four major categories: the companion animal

practice, mixed animal, food animal and equine practice. The pet care industry is the largest

sector in this type of practice due to the large number of pets in the country. According to the

2012 Pet Ownership and Demographics Sourcebook, 43,346,000 households in the U.S. own a

dog and 36,117,000 households own a cat. Those households represent 37 percent and 30 percent

of the total U.S households, respectively. Considering that the average number of dogs, cats,

birds, and horses is 1.6, 2.1, 2.3, and 2.7 per household, respectively, the total 2012 U.S

population for these companion animals will be 69,926,000 dogs, 74,059,000 cats, 8,300,000

birds, and 4,856,000 horses. By the end of 2015 and given the fact that 70 percent of Americain

household own their house and therefore are able to host a pet, the population of dogs and cats

will be approximately 84,315,000 dogs and 70,224,000 cats.

In Indiana, according to the AVMA pet calculator, 922,454 housholds own at least a dog,

768,290 own at least a cat, 78,345 own at least a bird, and 37,909 own at least a horse. The total

population of each of these categories of pets is 1,475,926 dogs, 1,612,398 cats, 179,436 birds,

and 103,618 horses. This represents a potential market for local veterinarians in Indiana.

Considering the basic annual average pet’s care (dogs and cats) requires roughly $600/cat and

$900/dog, it can be concluded that the market for goods and services for cats and dogs in Indiana

is potentially worth $2,295,772,200 per year.

The food animal industry is also a large sector in Indiana and requires a considerable

commitment of veterinarians. According to the National Cattlemen’s Beef Association’s beef

industry statistics, 90 million cattle were reported nationwide in 2015. The Market Research

Statistics reveal that the proportion of food animal veterinarians in the U.S is about 7 percent of

the total private practitioners in 2014. Mixed animal practice represents 6.4 percent of private

practitioners and equine practice is about 6 percent. An overview of the Indiana food animal and

animal related products inventory is given in Figure 29.

37

Source: USDA 2014 State of Agriculture Overview: Indiana

Figure 29: Food Animal Industry Overview in Indiana

5.3. Methodology for Economic Impact Analysis (EIA)

The EIA is the Input-Output Model (IOM) developed by Wassily Leontief in the 1930s. The

model, as developed by Leontief, provides a simplified view of an economy. Specifically, it

depicts the inter-relationship between sectors so that one can see how a change in one sector

affects the rest of the economy. Economic impact analysis is typically used to measure the

economic implications that accrue to a community as a result of an exogenous change in the

economic activities (Crompton. 1995). For instance, an increase in the number of pets, equine or

farm animals will increase the consumer demand for veterinary services, and this will lead to an

expansion of the veterinary industry in the local community. This expansion, in turn, will create

more jobs for the local residents and improve all other local businesses via the inter-sector

relationships.

EIA can also be used to quantify the economic benefits that a project, an industry, or a business

brings to the local, state, regional or national economies. Using the industry financial data and

other economic data available, the EIA generates estimates of output, employment, GDP, and tax

revenues created by a target industry.

38

5.4. The Input-Output Model and the IMPLAN

The input-output model represents the economy as a conglomerate of buyers and sellers. Each

producer’s output is another producer’s input so that all sectors are linked and any change in the

demand of one good or service will lead to a change in the production plan of all related sectors.

As a dollar invested by one sector, due to a change in the demand of its final product, flows into

the economy, it impacts at different degrees, all other sectors whose final products will be used

to meet the expanded demand of the sector directly concerned.

To best understand how the input-output model (IO model) works, the concept of production

function is explained. A production function relates the specific output to the technical

proportion of inputs required for its production. It enumerates all inputs required to produce a

unit of good or service. Each input is assigned a coefficient that tells how much of this input is

required in the production process of one unit of the output. An example of a simple veterinary

clinic production function is presented in Appendix B.

The EIA is performed with the IMPLAN input-output model. The IMPLAN model is a

computer-based modeling system currently managed by the Minnesota IMPLAN Group. It

provides a detailed description of the inter-industry relationship for any political region in the

United States. This description of the inter-industry dollar flows is referred to as the social

accounting matrix (SAM). Data in IMPLAN are compiled by county and aggregation is allowed

in order to build a larger functional economic space. In the case of Indiana, we aggregated the

county level data by economic growth regions. Appendix C provides a map of the economic

growth regions in Indiana and general characteristics of each of the regions.

Combining national level and county level data on industry production functions, IMPLAN

generates what is called the type-SAM multipliers. Those multipliers measure the change in the

total economic activity as a result of a change in one industry.

When estimating the economic impact of veterinary services, we are mainly interested in three

major impacts: the direct, the indirect, and the induced impacts.

(i) Direct impacts: GDP and jobs generated directly by the veterinary businesses.

(ii) Indirect impacts: GDP and jobs generated by businesses from where veterinarians

purchase their inputs (products, equipment, materials, etc).

(iii) Induced impacts: GDP and jobs generated by the spending patterns of those

employed directly or indirectly by the veterinary businesses.

39

5.5. Economy Wide Impacts

For the economic impact analysis, the approach used consists of subtracting the veterinary

services from the Indiana economy and looking at the economic implications that such event can

create to the local economy. Typically, the economic impact analysis estimates the economic

effects on an economy of a new business entering the local community or an existing business

shutting down. Another similar approach would be to compare two similar economies, one that

had a veterinary services sector and the other not having the sector. Comparing these two would

provide the difference in total economic activities that could be attributable to the veterinary

services. This method is known as the propensity score matching. Doing so will help understand

the economic impact of the veterinary services. However, finding two equal economies as just

discussed is extremely rare.

5.6. Results and Discussions

Overall Economic Impacts of Veterinary Services

Results from the EIA are reported in Table 9 through Table 14. These tables summarize for each

region and at the state level, the direct, indirect, and induced effects of veterinary services on

employment, labor income, value added, output, state taxes, and federal taxes. In total, 11

regions and the entire state of Indiana are included in this analysis. Notice that the state effect is

not the sum of the total individual regional effects. When the area of interest is large, such as

state level, leakages are hard to capture and therefore, IMPLAN will not provide accurate

estimates as in the case of less aggregated areas.

- Effects on Employment

We distinguished between jobs directly linked to the veterinary services and indirectly related

jobs. Veterinary services generate a total of 12,745 jobs in the state of Indiana with 9,901 being

Direct

Indirect

Induced

Total Economic

Impact

40

directly related to the veterinary services such as jobs for veterinarians, veterinary technicians

and technologists, laboratory physicians and so on. In terms of direct jobs, regions 5, 1, and 3

lead the group with 2,778, 1,215, and 1,192 jobs, respectively. This is not surprising for region 3

and 5, given that these two regions host the largest metropolitan areas of the state (Marion and

Allen). Region 1, due to its proximity with Chicago (Illinois) presents a high potential for

veterinary businesses. Regions 7 and 10 are at the bottom of the ranking in terms of direct jobs,

but this does not mean veterinary business is less prosperous in these regions. It might be that

these regions are farming areas and that large animal practices, which are less labor intensive,

are predominant.

An estimated 983 jobs exist due to the existence of the veterinary services sector in Indiana.

Examples of these indirectly related sectors might be all businesses that supply intermediate

inputs to the veterinary services. Because a portion of the salary from these 983 jobs will be

spent on local purchases, veterinary services industry workers and workers from indirectly

impacted businesses will generate more jobs in the local community as more restaurants,

groceries, and public transportation will be needed to meet the local demand. These additional

jobs, a result of the need to provide services to veterinary services workers, are said to be

“induced” as a result of veterinary services and comprise an estimated 1,860 employees.

The top ten industries that indicate employment is affected by the demand for veterinary services

in Indiana are the veterinary services (direct effects), support activities for agriculture and

forestry, real estate, maintenance and repair construction of nonresidential structures, limited-

service restaurants, hospitals, full-service restaurants, wholesale trade, retail stores, and nursing

and community care facilities.

Table 9: Effects on Employment at Regional and State Level

Direct Effect Indirect Effect Induced Effect Total Effect

Region 1 1,215 112 193 1,521

Region 2 845 105 158 1,108

Region 3 1,192 106 202 1,500

Region 4 931 56 113 1,100

Region 5 2,778 311 637 3,725

Region 6 661 53 78 792

Region 7 385 29 48 462

Region 8 446 36 58 540

Region 9 579 38 56 674

Region 10 329 31 43 402

Region 11 541 48 82 672

INDIANA 9,901 983 1,860 12,745

41

- Effects on Labor Income

The direct effect on labor income is the total amount of money that wouldn’t be injected into the

economy as payroll as a result of the existence of the veterinary services sector. This labor

income represents the gross compensation received by all employees of the veterinary services

sector in Indiana and is estimated at $254,238,000. Obviously, the regions with a large number

of veterinary services workers will have higher estimated gross compensation. The three largest

regions in terms of number of employees in the veterinary services (regions 5, 1, and 3) account

for $1,398,698,802 of the total direct employment compensation. In region 5 alone (Boone,

Hendricks, Morgan, Johnson, Shelby, Hancock, Hamilton, Madison, and Marion) payroll for

veterinary industry workers is equivalent to $78,958,327.

Because some sectors outside of the veterinary service sector provide intermediate inputs to the

veterinary service sector, indirect effects on employee compensation exist that must be

accounted for in the total compensation effect. These indirect effects are estimated at

$50,459,840 for the entire state of Indiana. That is, the veterinary services sector requires inputs

from other sectors and this requires employment (and hence employee compensation) in these

other sectors.

The induced effects are all other jobs generated by changes in direct and indirect employees

spending patterns. Again, the employees in the veterinary services sector (direct) and all of the

sectors that provide inputs to the veterinary services sector (indirect) must purchase goods and

services for their households. These purchases such as housing, utilities, food and recreation

require employees (and thus employee compensation) to provide (induced). At the state level, an

estimated total of $75,804,088 is generated as induced effects. The amplitude of the induced

effects depends on the size of the sector in the region. Therefore, region 5 is still the leading

region in term of induced effect with $29,251,601 followed by region 3 ($7,421,232) and region

1 ($7,188,385).

The total impact of the veterinary services sector on employee compensation for the state (sum

of direct, indirect, and induced effects) is estimated at $380,502,824. This correspond to the total

gross revenue received by all workers in the veterinary industry in the state of Indiana, workers

in sectors that supply inputs to the veterinary services, and all other employees whose job is

made possible due to the existence of the veterinary sector.

42

Table 10: Effects on Labor Income at Regional and State Level

- Effects on Total Value Added

The total value added corresponds to the sum of wage income and profit generated in the region

or state by a given sector. The total value added as a result of the existence of the veterinary

services sector at the state level is estimated at $652,874,177. In 2014, the Bureau of Economic

Analysis (BEA) estimated that the State Gross Product of Indiana was $318 billion. In their

estimation, the durable goods manufacturing sector is the leading industry with 15 percent of the

state GSP, followed by the finance sector (15%), the non-durable goods (14%), educational

services, health care, and social assistance (9%), government (9%), and all other sectors

represent 38 percent.

Direct Effect Indirect Effect Induced Effect Total Effect

Region 1 $ 31,856,157 $ 5,731,228 $ 7,188,385 $ 44,775,770

Region 2 $ 25,430,760 $ 4,863,364 $ 6,250,247 $ 36,544,371

Region 3 $ 29,055,318 $ 5,111,267 $ 7,421,232 $ 41,587,818

Region 4 $ 21,124,824 $ 2,491,889 $ 3,810,601 $ 27,427,314

Region 5 $ 78,958,327 $ 20,270,073 $ 29,251,601 $ 128,480,000

Region 6 $ 13,730,540 $ 2,479,935 $ 2,799,920 $ 19,010,395

Region 7 $ 8,824,172 $ 981,408 $ 1,689,718 $ 11,495,298

Region 8 $ 10,358,967 $ 1,278,274 $ 1,910,187 $ 13,547,428

Region 9 $ 12,860,452 $ 1,836,535 $ 1,917,733 $ 16,614,719

Region 10 $ 8,398,193 $ 1,237,148 $ 1,457,266 $ 11,092,607

Region 11 $ 13,641,211 $ 2,243,662 $ 3,164,595 $ 19,049,468

INDIANA $ 254,238,896 $ 50,459,840 $ 75,804,088 $ 380,502,824

43

The direct effects on total value added are estimated at $439,024,550 for the overall state, the

indirect and induced effects are $76,730,550 and $137,119,050 respectively. Region 5 generates

a total value added of $215,342,161. Although in region 10, the veterinary services sector

generates a total value added effect of $19,247,862, it does not mean the sector is weak in that

region. Some other characteristics such as demographics might better explain this finding.

Table 11: Effects on Total Value Added at Regional and State Level

Direct Effect Indirect Effect Induced Effect Total Effect

Region 1 $ 55,009,820 $ 8,466,310 $ 13,398,396 $ 76,874,526

Region 2 $ 43,914,320 $ 6,862,809 $ 11,068,059 $ 61,845,188

Region 3 $ 50,173,286 $ 7,391,375 $ 13,787,923 $ 41,587,818

Region 4 $ 36,478,750 $ 3,773,618 $ 7,460,936 $ 47,713,303

Region 5 $ 136,346,747 $ 28,932,306 $ 50,063,108 $ 215,342,161

Region 6 $ 23,710,159 $ 3,308,910 $ 5,244,347 $ 32,263,416

Region 7 $ 15,237,749 $ 1,502,199 $ 3,185,540 $ 19,925,488

Region 8 $ 17,888,062 $ 1,986,361 $ 3,753,724 $ 23,628,148

Region 9 $ 22,207,675 $ 2,605,497 $ 3,916,061 $ 28,729,233

Region 10 $ 14,502,160 $ 1,840,001 $ 2,905,701 $ 19,247,862

Region 11 $ 23,555,904 $ 3,393,352 $ 5,751,121 $ 32,700,378

INDIANA $ 439,024,550 $ 76,730,577 $ 137,119,050 $ 652,874,177

- Effects on Output

The total industry output is the dollar value of all goods and services produced by the sector. In

region 1, for instance, the veterinary services sector has produced an equivalent of $87,195,893

of goods and services. Related sectors have produced output worth $15,468,819 that has been

used by the veterinary services as inputs, $23,692,896 worth of goods and services have been

produced as induced effects of the veterinary sector. Summing up all three effects, region 1

obtains a total effect of $125,692,896. The two other largest regions obtain $117,174,256 and

$347,232,911, respectively for region 3 and region 5. The overall effect to the state of Indiana is

worth $1,076,603,121.

Table 12: Effects on Output at Regional and State Level

44

Direct Effect Indirect Effect Induced Effect Total Effect

Region 1 $ 87,195,893 $ 15,468,819 $ 23,692,896 $ 125,692,896

Region 2 $ 69,608,463 $ 12,286,440 $ 18,893,668 $ 100,788,570

Region 3 $ 79,529,533 $ 13,339,307 $ 24,305,415 $ 117,174,256

Region 4 $ 57,822,362 $ 6,908,612 $ 12,953,917 $ 77,684,891

Region 5 $ 216,122,808 $ 46,988,693 $ 84,121,410 $ 347,232,911

Region 6 $ 37,582,901 $ 5,774,022 $ 9,059,272 $ 52,416,195

Region 7 $ 24,153,311 $ 3,153,104 $ 5,601,837 $ 32,908,252

Region 8 $ 28,354,311 $ 3,790,633 $ 6,591,775 $ 38,736,719

Region 9 $ 35,201,321 $ 4,589,121 $ 6,627,143 $ 46,417,585

Region 10 $ 22,987,331 $ 3,428,902 $ 4,952,662 $ 31,368,895

Region 11 $ 37,338,391 $ 6,559,252 $ 10,142,007 $ 54,039,650

INDIANA $ 695,896,624 $ 141,133,938 $ 239,572,559 $ 1,076,603,121

- Effects on State and Local Taxes

Part of the employee compensation is paid to the state government in the form of taxes. In total,

the state receives $281,221 from employees whose income is paid by the veterinary services

sector. Products produced by the veterinary services and related industries are also taxed in the

form of tax on production or tax on imports. From these types of taxes, the state of Indiana

receives $19,697,453 annually. Households and corporations also pay taxes for their links to the

veterinary sectors or because they are using veterinary services. Example of such taxes can be

pet taxes, pet food taxes, or veterinary service taxes paid by households. This analysis shows that

in Indiana, households are paying (each year) an equivalent of an estimated $10,429,509 in taxes

due to the existence of the veterinary services sector. Corporations are paying $1,999,835 per

year.

Table 13: Effects on State and Local Taxes

Employee Tax on Prod.

Compensation and Imports Households Corporations

Region 1 $ 29,668 $ 2,186,602 $ 1,253,000 $ 236,539

Region 2 $ 17,416 $ 1,810,006 $ 967,116 $ 185,957

Region 3 $ 23,320 $ 2,154,034 $ 1,116,746 $ 218,362

Region 4 $ 33,389 $ 1,299,219 $ 718,110 $ 150,646

Region 5 $ 84,736 $ 6,574,333 $ 3,506,737 $ 635,154

Region 6 $ 20,861 $ 908,705 $ 512,163 $ 97,827

Region 7 $ 11,333 $ 559,183 $ 294,723 $ 62,351

Region 8 $ 18,060 $ 657,884 $ 347,937 $ 74,769

Region 9 $ 11,891 $ 763,530 $ 464,433 $ 89,946

Region 10 $ 10,316 $ 557,312 $ 302,253 $ 60,256

Region 11 $ 10,931 $ 909,870 $ 526,124 $ 100,876

45

INDIANA $ 281,221 $ 19,697,453 $ 10,429,509 $ 1,999,835

- Effects on Federal Taxes

Workers in Indiana also pay federal income taxes both in the form of taxes on employee

compensation and in an additional category of “Proprietor income tax”. This tax is paid, for

instance, by the veterinary hospital owners. In total, Indiana has received an estimated

$6,658,829 of proprietor income for the year 2014. The total employee compensation taxes paid

to the federal government are estimated at $26,491,729. The taxes on production and imports are

approximately $2.5 million. Households and corporations pay to the federal government

$23,918,613 and $17,824,206, respectively.

46

Table 14: Effects on Federal Taxes

Employee Proprietor Tax on Prod.

Compensation Income and Imports Households Corporations

Region # 1 $ 2,995,207 $ 815,281 $ 314,813 $ 2,870,570 $ 2,108,233

Region # 2 $ 2,476,340 $ 674,144 $ 215,299 $ 2,216,992 $ 1,657,402

Region # 3 $ 2,896,025 $ 761,992 $ 278,337 $ 2,551,543 $ 1,946,227

Region # 4 $ 1,761,905 $ 520,042 $ 129,596 $ 1,643,075 $ 1,342,684

Region # 5 $ 8,960,239 $ 2,162,499 $ 818,079 $ 8,080,039 $ 5,661,023

Region # 6 $ 1,310,762 $ 367,605 $ 87,574 $ 1,171,662 $ 871,912

Region # 7 $ 801,810 $ 209,999 $ 64,729 $ 674,657 $ 555,728

Region # 8 $ 892,053 $ 252,652 $ 68,084 $ 798,592 $ 666,403

Region # 9 $ 1,038,019 $ 326,109 $ 96,247 $ 1,060,545 $ 801,677

Region # 10 $ 779,904 $ 210,312 $ 55,158 $ 689,428 $ 537,055

Region # 11 $ 1,326,714 $ 340,835 $ 124,391 $ 1,202,964 $ 899,092

INDIANA $ 26,491,729 $ 6,658,829 $ 2,417,853 $ 23,918,613 $ 17,824,206

47

VI. References

1. Slater, M.R., and M. Slater. 2000. “Women in Veterinary Medicine.” J. Am. Vet. Med.

Assoc. 217: 472–476.

2. Smith, C.A. 2002. “Gender and Work: What Veterinarians can learn from Research about

Women, Men, and Work.” J. Am. Vet. Med. Assoc. 220:1304–1311.

3. Lofstedt, J. 2003. “Gender and Veterinary Medicine.” Can. Vet. J. 44(7):533-535.

4. AAVMC 2014, Annual Data Report.

5. Mincer, J. 1991. “Education and Unemployment.” National Bureau of Economic

Research, Working Paper 3838.

6. DeNavas-Walt, C. and B.D. Proctor, 2014. U.S. Census Bureau, Current Population

Reports, P60-249, Income and Poverty in the United States: 2013, U.S. Government

Printing Office, Washington, D.C.

7. Pritchard, R.W. 1994. “A Changing World and a Changing Profession Challenge

Veterinary Medical Education.” J. Vet. Medical Education. 21(2):

8. Crompton. L.J. 1995. “Economic Impact Analysis of Sports Facilities and Events: Eleven

Sources of Misapplication.” Journal of Sport Management 9: 14-35.

9. G. Weisbrod and B. Weisbrod. 1997. “Measuring Economic Impacts of Projects and

Programs.” Economic Research Group

10. Stats Indiana http://www.stats.indiana.edu/maptools/laus.asp

11. Nunalee, M.M.M., and R.G. Weedon. 2004. “Modern Trends in Veterinary Ma lpractice:

How our Evolving Attitudes toward Non-human Animals will Change Veterinary

Medicine.” Animal Law 125(10): 125-161.

48

Appendix A

Employment and Compensation Surveys

49

A.4: In a scale of 1 to 5 (1 = low expectation and 5 = high expectation) rate your expectation before entering the

veterinary profession and your satisfaction after becoming a veterinarian

Career development opportunities for learning and professional growth

Opportunities to network with others

Communication between employees and senior staff Management recognition of employee job performance

3.2% 2.1%

22.3%

38.3%34.0%

5.4%

14.0%

31.2%

25.8% 23.7%

1 2 3 4 5

Before After

6.4%3.2%

24.5%

36.2%

29.8%

7.4%

20.2%

34.0%

20.2%18.1%

1 2 3 4 5

Before After

1.1% 3.2%

12.9%

35.5%

47.3%

16.1%11.8%

34.4%

22.6%

15.1%

1 2 3 4 5

Before After

1.1%5.4%

15.1%

38.7% 39.8%

17.2% 17.2%

25.8% 26.9%

12.9%

1 2 3 4 5

Before After

50

Opportunities for variable pay Benefits: Health care/medical benefits

Feeling safe in the work environment Overall culture of work place

12.1%

5.5%

20.9%

38.5%

23.1%16.5%

19.8%

24.2%27.5%

12.1%

1 2 3 4 5

Before After

14.9%

2.1%

18.1%

30.9%34.0%

16.1%18.3%

26.9%25.8%

12.9%

1 2 3 4 5

Before After

5.3%

27.7%

67.0%

2.1% 3.2%8.4%

35.8%

50.5%

1 2 3 4 5

Before After

1.1% 2.1%

10.5%

31.6%

54.7%

6.3%10.5%

20.0%

35.8%

27.4%

1 2 3 4 5

Before After

51

A.5: Please rate each category about your college preparedness before entering the veterinary profession and

after becoming a veterinarian

Physical examination History taking

Diagnosis of lameness Diagnosis/treatment of parasitic diseases

7.7%

30.8%

61.5%

6.0%

32.0%

62.0%

1 2 3 4 5

Before After

9.6%

40.4%50.0%

4.0%

36.0%

60.0%

1 2 3 4 5

Before After

9.6%

38.5%34.6%

17.3%

6.3%

33.3%

41.7%

18.8%

1 2 3 4 5

Before After

5.8%

19.2%

36.5% 38.5%

20.4%

40.8% 38.8%

1 2 3 4 5

Before After

52

Anesthesia Fluid therapy

Intravenous injection Development/adaptation of vaccination protocols

1.9%

23.1%

42.3%

32.7%

4.2%

20.8%

41.7%33.3%

1 2 3 4 5

Before After

5.8%

25.0%

38.5%

30.8%

2.1%6.3%

12.5%

47.9%

31.3%

1 2 3 4 5

Before After

7.7% 7.7%

25.0%

59.6%

8.3%

35.4%

56.3%

1 2 3 4 5

Before After

11.8%

19.6%

35.3% 33.3%

4.2%

14.6%

27.1%

54.2%

1 2 3 4 5

Before After

53

Advising clients on nutrition Developing diagnostic plans for difficult cases

Investigation of potential toxin exposure Prescribing medications

5.8%

23.1%

42.3%

23.1%

5.8%4.1%

16.3%

34.7% 32.7%

12.2%

1 2 3 4 5

Before After

3.8% 3.8%

23.1%

40.4%

28.8%

8.2%

14.3%

46.9%

30.6%

1 2 3 4 5

Before After

15.4%

51.9%

30.8%

1.9%

14.0%

44.0%

32.0%

10.0%

1 2 3 4 5

Before After

1.9%

9.6%

26.9%32.7%

28.8%

4.1%

26.5%

38.8%

30.6%

1 2 3 4 5

Before After

54

Interpretation of cytology specimens Interpretation of post-mortem specimens

Interpretation of ultrasound examinations Interpretation of radiographs

21.15%

32.69%28.85%

17.31%

6.25% 6.25%

37.50%41.67%

8.33%

1 2 3 4 5

Before After

11.8%

31.4%33.3%

23.5%

4.55% 6.82%

34.09%

22.73%

31.82%

1 2 3 4 5

Before After

34.62%

26.92%

15.38%17.31%

5.77%

33.33%

21.43%

14.29%

19.05%

11.90%

1 2 3 4 5

Before After

1.92%

11.54%

34.62% 34.62%

17.31%

4.17% 6.25%

37.50% 39.58%

12.50%

1 2 3 4 5

Before After

55

Interpretation of hematologic values Diagnosis/therapy of gastrointestinal disease

Diagnosis/therapy of dermatological disease Diagnosis/therapy of endocrine disease

5.77%

15.38%

38.46%40.38%

18.75%

52.08%

29.17%

1 2 3 4 5

Before After

5.88%

35.29% 35.29%

23.53%

2.08% 4.17%

20.83%

50.00%

22.92%

1 2 3 4 5

Before After

21.57% 21.57% 23.53% 25.49%

7.84%8.33%

14.58%

31.25%

39.58%

6.25%

1 2 3 4 5

Before After

9.80%

35.29%

29.41% 25.49%

2.13%4.26%

34.04%

46.81%

12.77%

1 2 3 4 5

Before After

56

Diagnosis/therapy of cardiac disease Diagnosis/therapy of respiratory disease

Diagnosis/therapy of renal disease Diagnosis/therapy of neurological disease

17.65%13.73%

35.29%

23.53%

9.80%6.52%

19.57%

39.13%

23.91%

10.87%

1 2 3 4 5

Before After

11.76%

33.33%

45.10%

9.80%

2.13% 4.26%

44.68%

34.04%

14.89%

1 2 3 4 5

Before After

3.92%

17.65%

52.94%

25.49%

4.17%

16.67%

56.25%

22.92%

1 2 3 4 5

Before After

3.92%

11.76%

31.37%35.29%

17.65%

6.25%

14.58%

25.00%

39.58%

14.58%

1 2 3 4 5

Before After

57

Diagnosis/therapy of ocular disorders Orthopedic surgery

Soft tissue surgery Spay/ Neuter

1.96%

21.57%

27.45% 25.49% 23.53%

6.25%

14.58%20.83%

39.58%

18.75%

1 2 3 4 5

Before After

36.00%

30.00%26.00%

6.00%2.00%

30.00%

25.00% 25.00%

12.50%

7.50%

1 2 3 4 5

Before After

7.84%

21.57%

39.22%

23.53%

7.84%4.26%

6.38%

25.53%

42.55%

21.28%

1 2 3 4 5

Before After

3.92%

11.76%

21.57%

29.41%33.33%

2.13%

19.15%

27.66%

51.06%

1 2 3 4 5

Before After

58

Management of reproductive programs Evaluation of disease outbreaks

Evaluation of new drugs/products Interpretation of medical literature

26.53%22.45%

36.73%

10.20%

4.08%

13.51%

21.62%

40.54%

8.11%

16.22%

1 2 3 4 5

Before After

8.00%

22.00%

30.00% 32.00%

8.00%9.76%

19.51%

26.83%

21.95% 21.95%

1 2 3 4 5

Before After

15.69% 13.73%

27.45% 27.45%

15.69%

2.13%6.38%

23.40%

42.55%

25.53%

1 2 3 4 5

Before After

5.88% 5.88%

15.69%

43.14%

29.41%

2.00%

20.00%

44.00%

34.00%

1 2 3 4 5

Before After

59

A.6: Please rate each category about your college preparedness before entering the veterinary profession and

after becoming a veterinarian

Dealing with people Veterinary Medicine as a business

Giving educational presentations to the community Client Communications

5.88%

11.76%

23.53%

39.22%

19.61%

6.00%

22.00%

42.00%

30.00%

1 2 3 4 5

Before After

16.00%

28.00%34.00%

18.00%

4.00%8.70%

19.57%

39.13%

21.74%

10.87%

1 2 3 4 5

Before After

8.00%14.00%

26.00%

34.00%

18.00%

4.55%

15.91%11.36%

43.18%

25.00%

1 2 3 4 5

Before After

3.92% 3.92%

23.53%

35.29%33.33%

4.00%

14.00%

46.00%

36.00%

1 2 3 4 5

Before After

60

Appendix B

Production Function

(IMPLAN 2013 Data)

61

Production Function for a Typical Veterinary Business

Commodity Source Coefficient

Support activities for agriculture and forestry 0.094216

Veterinary services 0.045218

Maintained and repaired nonresidential structures 0.035137

Other basic organic chemicals 0.031728

Refined petroleum products 0.029081

Real estate buying and selling, leasing, managing, and related services 0.021107

Farm machinery and equipment 0.016966

Wholesale trade distribution services 0.016189

Phosphatic fertilizer 0.013183

Nitrogenous fertilizer 0.011671

Pesticides and other agricultural chemicals 0.008911

Water, sewage and other systems 0.007122

Monetary authorities and depository credit intermediation 0.006354

Automotive equipment rental and leasing services 0.004988

Electricity transmission and distribution 0.003844

Commercial and industrial machinery and equipment rental and leasing

services 0.00374

Truck transportation services 0.003576

Natural gas distribution 0.003234

Hand tools 0.002333

Accounting, tax preparation, bookkeeping, and payroll services 0.002107

Other basic inorganic chemicals 0.001841

Tires 0.001759

Warehousing and storage services 0.001277

Rail transportation services 0.001063

Beef cattle 0.00101

Legal services 0.000963

Other motor vehicle parts 0.000929

Motor vehicle electrical and electronic equipment 0.000871

Other fabricated metals 0.000859

Insurance agencies, brokerages, and related services 0.000826

Business and professional services 0.000703

Grains 0.000682

All others 0.010714

62

Appendix C

Economic Growth Regions and Region Characteristics in Indiana

(IMPLAN 2013 Data)

63

Regional Map of Indiana

Source: Indiana Department of Workforce Development.

http://in.gov/dwd/2540.htm

64

Region # 01

1. Lake 2. Porter 3. La Porte 4. Starke 5. Newton 6. Jasper 7. Pulaski

Model Information

Total Personal Income $33,290,280,000

Total Employment 420,955

Number of Industries 364

Land Area (Sq. Miles) 3,218

Population 852,974

Total Households 324,107

Average Household Income $102,714

Value Added

Employee Compensation $18,320,043,213

Proprietor Income $2,076,126,584

Other Property Type Income $15,537,875,301

Tax on Production and Import $2,808,392,062

Total Value Added $38,742,437,160

Final Demand

Households 29,575,687,379

State/Local Government $4,490,414,117

Federal Government $745,356,006

Capital $8,964,434,886

Exports $53,863,255,654

Imports -$57,362,023,393

Institutional Sales -$1,534,687,649

Total Final Demand: $38,742,437,001

65

Region # 02

1. St. Joseph 2. Elkhart 3. Marshall 4. Fulton 5. Kosciusko

Model Information

Total Personal Income $23,439,090,000

Total Employment 375,897

Number of Industries 389

Land Area (Sq. Miles) 2,271

Population 612,793

Total Households 231,729

Average Household Income $101,149

Value Added

Employee Compensation $16,190,684,811

Proprietor Income $2,622,174,297

Other Property Type Income $10,146,935,579

Tax on Production and Import $1,633,651,826

Total Value Added $30,593,446,513

Final Demand

Households 20,213,851,177

State/Local Government $2,763,557,379

Federal Government $520,727,467

Capital $3,880,528,692

Exports $36,833,010,882

Imports -$32,524,920,139

Institutional Sales -$1,093,308,846

Total Final Demand: $30,593,446,611

66

Region # 03

1. Lagrange 2. Noble 3. Whitley 4. Wabash 5. Huntington 6. Grant 7. Wells

8. Adams 9. Allen 10. De Kalb 11. Steuben

Model Information

Total Personal Income $27,254,300,000

Total Employment 439,371

Number of Industries 390

Land Area (Sq. Miles) 4,374

Population 759,242

Total Households 291,067

Average Household Income $93,636

Value Added

Employee Compensation $17,223,631,312

Proprietor Income $2,387,191,596

Other Property Type Income $11,483,281,374

Tax on Production and Import $2,063,529,504

Total Value Added $33,157,633,786

Final Demand

Households 25,447,000,627

State/Local Government $3,492,263,175

Federal Government $1,029,000,450

Capital $5,782,242,122

Exports $42,930,466,321

Imports -$44,015,742,471

Institutional Sales -$1,507,596,390

Total Final Demand: $33,157,633,834

67

Region # 04

1. Benton 2. Warren 3. Fountain 4. White 5. Tippecanoe 6. Montgomery

7. Cass 8. Carroll 9. Clinton 10. Miami 11. Howard 12. Tipton

Model Information

Total Personal Income $17,391,870,000

Total Employment 259,764

Number of Industries 335

Land Area (Sq. Miles) 4,796

Population 502,894

Total Households 200,501

Average Household Income $86,742

Value Added

Employee Compensation $10,626,614,131

Proprietor Income $1,220,138,444

Other Property Type Income $8,176,070,162

Tax on Production and Import $1,016,513,445

Total Value Added $21,039,336,182

Final Demand

Households 17,223,165,829

State/Local Government $4,476,562,760

Federal Government $547,201,068

Capital $2,884,880,632

Exports $30,607,789,766

Imports -$33,235,177,618

Institutional Sales -$1,465,086,074

Total Final Demand: $21,039,336,364

68

Region # 05

1. Boone 2. Hendricks 3. Morgan 4. Johnson 5. Shelby 6. Hancock

7. Hamilton 8. Madison 9. Marion

Model Information

Total Personal Income $82,248,040,000

Total Employment 1,200,583

Number of Industries 415

Land Area (Sq. Miles) 3,523

Population 1,901,433

Total Households 738,582

Average Household Income $111,359

Value Added

Employee Compensation $58,186,235,318

Proprietor Income $7,850,970,576

Other Property Type Income $40,132,287,285

Tax on Production and Import $5,996,894,382

Total Value Added $112,166,387,560

Final Demand

Households 70,285,690,395

State/Local Government $11,914,766,399

Federal Government $4,785,021,490

Capital $18,246,249,235

Exports $76,761,927,236

Imports -$65,735,302,643

Institutional Sales -$4,191,964,566

Total Final Demand: $112,166,387,546

69

Region # 06

1. Blackford 2. Delaware 3. Henry 4. Rush 5. Jay 6. Randolph 7. Wayne

8. Fayette 9. Union

Model Information

Total Personal Income $11,570,970,000

Total Employment 159,846

Number of Industries 313

Land Area (Sq. Miles) 2,977

Population 342,001

Total Households 139,027

Average Household Income $83,228

Value Added

Employee Compensation $5,663,735,391

Proprietor Income $931,638,487

Other Property Type Income $3,557,635,868

Tax on Production and Import $653,397,891

Total Value Added $10,806,407,637

Final Demand

Households 11,155,869,913

State/Local Government $2,180,809,707

Federal Government $236,396,159

Capital $1,725,897,876

Exports $11,017,885,286

Imports -$14,734,845,249

Institutional Sales -$775,606,096

Total Final Demand: $10,806,407,597

70

Region # 07

1. Vermillion 2. Vigo 3. Sullivan 4. Parke 5. Clay 6. Putnam

Model Information

Total Personal Income $7,658,047,000

Total Employment 110,355

Number of Industries 268

Land Area (Sq. Miles) 2,390

Population 226,902

Total Households 91,296

Average Household Income $83,882

Value Added

Employee Compensation $4,160,544,061

Proprietor Income $673,856,322

Other Property Type Income $3,106,648,162

Tax on Production and Import $519,424,745

Total Value Added $8,460,473,289

Final Demand

Households 7,724,269,897

State/Local Government $1,476,226,320

Federal Government $408,527,942

Capital $1,510,910,259

Exports $9,194,087,968

Imports -$11,262,747,639

Institutional Sales -$590,801,480

Total Final Demand: $8,460,473,267

71

Region # 08

1. Owen 2. Greene 3. Daviess 4. Martin 5. Monroe 6. Lawrence 7. Orange

8. Brown

Model Information

Total Personal Income $10,877,080,000

Total Employment 160,661

Number of Industries 296

Land Area (Sq. Miles) 3,249

Population 319,077

Total Households 131,788

Average Household Income $82,535

Value Added

Employee Compensation $5,967,936,961

Proprietor Income $650,423,007

Other Property Type Income $5,404,467,563

Tax on Production and Import $659,572,849

Total Value Added $12,682,400,379

Final Demand

Households 10,958,415,634

State/Local Government $2,689,238,715

Federal Government $1,497,080,535

Capital $2,396,780,357

Exports $9,895,750,114

Imports -$13,836,304,634

Institutional Sales -$918,560,410

Total Final Demand: $12,682,400,312

72

Region # 09

1. Decatur 2. Bartholomew 3. Jackson 4. Jennings 5. Jefferson 6. Ripley

7. Franklin 8. Dearborn 9. Ohio 10. Switzerland

Model Information

Total Personal Income $12,487,460,000

Total Employment 178,101

Number of Industries 313

Land Area (Sq. Miles) 3,473

Population 327,823

Total Households 125,532

Average Household Income $99,477

Value Added

Employee Compensation $7,490,751,300

Proprietor Income $873,352,681

Other Property Type Income $6,292,070,063

Tax on Production and Import $922,340,362

Total Value Added $15,578,514,406

Final Demand

Households 11,211,515,337

State/Local Government $2,099,593,845

Federal Government $238,890,236

Capital $2,248,918,840

Exports $27,357,333,089

Imports -$26,824,146,242

Institutional Sales -$753,590,631

Total Final Demand: $15,578,514,475

73

Region # 10

1. Washington 2. Crawford 3. Scott 4. Clark 5. Floyd 6. Harrison

Model Information

Total Personal Income $10,802,210,000

Total Employment 136,365

Number of Industries 304

Land Area (Sq. Miles) 2,019

Population 290,718

Total Households 114,290

Average Household Income $94,516

Value Added

Employee Compensation $4,878,190,805

Proprietor Income $724,604,553

Other Property Type Income $3,195,004,283

Tax on Production and Import $626,436,991

Total Value Added $9,424,236,632

Final Demand

Households 10,051,712,787

State/Local Government $1,751,335,790

Federal Government $532,324,474

Capital $2,048,139,394

Exports $8,688,079,525

Imports -$13,070,169,284

Institutional Sales -$577,186,034

Total Final Demand: $9,424,236,651

74

Region # 11

1. Knox 2. Gibson 3. Posey 4. Pike 5. Vanderburgh 6. Warrick 7. Dubois

8. Spencer 9. Perry

Model Information

Total Personal Income $18,010,700,000

Total Employment 264,028

Number of Industries 334

Land Area (Sq. Miles) 3,578

Population 435,045

Total Households 176,685

Average Household Income $101,937

Value Added

Employee Compensation $11,465,412,798

Proprietor Income $1,528,702,678

Other Property Type Income $9,609,557,885

Tax on Production and Import $1,442,777,806

Total Value Added $24,046,451,168

Final Demand

Households 15,599,380,376

State/Local Government $2,389,957,683

Federal Government $442,473,325

Capital $4,334,501,237

Exports $35,633,734,731

Imports -$33,277,698,114

Institutional Sales -$1,075,898,126

Total Final Demand: $24,046,451,113

75

INDIANA

Model Information

GRP $316,697,724,567

Total Personal Income $255,030,000,000

Total Employment 3,705,925

Number of Industries 492

Land Area (Sq. Miles) 35,870

Population 6,570,902

Total Households 2,564,603

Average Household Income $99,442

Economic Indicators

Shannon-Weaver Index .7812

Value Added

Employee Compensation $160,173,783,342

Proprietor Income $21,539,178,934

Other Property Type Income $116,641,830,332

Tax on Production and Import $18,342,931,959

Total Value Added $316,697,724,567

Final Demand

Households 229,546,558,561

State/Local Government $39,724,725,616

Federal Government $10,982,998,325

Capital $54,023,484,158

Exports $301,734,554,455

Imports -$304,830,310,675

Institutional Sales -$14,484,285,357

Total Final Demand: $316,697,725,083