What current economic indicators mean for veterinarians
Veterinary practices are operating in a tighter economic environment, and that’s the central takeaway from EquiManagement’s latest Business of Practice podcast featuring AVMA Chief Economist Katelyn McCullock. McCullock’s message, as described by EquiManagement, is that veterinarians should keep their attention on a few core indicators rather than reacting to every headline. Broader industry data backs that up: AVMA’s recent economic reporting says the U.S. economy has been cooling, inflation is still eating into real income gains, and veterinary medicine remains in a tight labor market. At the same time, Vetsource said visits per practice fell 3.1% in 2025, including a 3.8% drop in wellness visits, suggesting many pet parents are spacing out care as household budgets stay under pressure. EquiManagement’s related podcast episode on affordability, with CareCredit’s Kate Hayes, points to the same shift from another angle: practices are being pushed to think more deliberately about how clients pay for care. (equimanagement.com)
Why it matters: For veterinary professionals, the practical implication isn’t simply “clients are spending less.” It’s that demand may be softer or less predictable, even while payroll, supplies, and other operating costs remain high. Industry commentary from AAHA describes hospitals being squeezed by rising labor, drug, and supply costs on one side and more price-sensitive clients on the other. That makes the basics McCullock reportedly emphasized especially relevant now: know your numbers, protect margins without losing client trust, and focus on the parts of practice performance you can control, including team efficiency, preventive care compliance, and payment conversations. In equine and mixed settings especially, where revenue often depends heavily on doctor-generated billable work, those decisions can directly affect workload, retention, and profitability. (aaha.org)
What to watch: Expect more attention in 2026 to visit trends, client affordability tools, and whether inflation-adjusted veterinary revenue can hold up if preventive care demand stays soft. (aaha.org)