In this episode of The Business of Practice podcast, Katelyn McCullock, chief economist and director of AVMA’s Economic Division, discussed current economic indicators and what they mean for veterinarians.
McCullock hosts a quarterly Economic Update to help veterinarians understand the economy. You can access it on the AVMA Axon educational site. She developed this program to bring timely economic news to the veterinary industry.
McCullock explained that the high level of economic uncertainty in the last few quarters has affected consumer spending. She noted the low consumer sentiment and the 2.3% decline in veterinary visits year over year. Consumer spending has remained strong, but it has been fueled almost exclusively by the wealthy when segmented by income level, while inflation has decreased the purchasing power of wages, she said.
Delinquencies greater than 90 days have reached levels not seen since the Great Recession, with 13% of total credit card payments overdue by three months, McCullock shared. Housing affordability and availability, the labor market, and the effect of AI were other topics she covered in the conversation.
McCullock said the three things veterinarians must focus on in this economic climate are having strong brand differentiation, targeting marketing to subsets of clients, and adopting technology that can increase your practice’s efficiency. She said the AVMA’s resources for practices can be a great source of information and inspiration.
About Katelyn McCullock
Katelyn McCullock received a master’s degree in agricultural and resource economics in 2010 from Colorado State University. She worked as an economist at the American Farm Bureau Federation and as a business consultant for Farm Credit East ACA, a financial services cooperative that provides a broad spectrum of credit and financial services for agriculture businesses. McCullock served as a senior economist at the Livestock Marketing Information Center (LMIC) starting in 2018 and as the center director from 2019 until she joined the AVMA in 2024 as the new chief economist and director of AVMA’s Economic Division.
When she isn’t devouring and making sense of data, she enjoys spending time with her husband and their two adorable dogs.
Related Reading
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- Setting Rational Fees for Veterinary Care
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