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Economic Impact Report

Executive Summary

Proudly serving the state, nation, and increasingly, the world, veterinarians enhance the lives of Texans in countless ways. Veterinary medicine is critical to the Texas economy, from state-of-the-art specialty hospitals providing Texas pets and their owners with superior care and compassion, to protecting the nation's leading livestock and equine industries, as well as serving Texas through governmental, academic, industrial and military roles.

This study will provide the first-ever, economic analysis of veterinary contributions to the state of Texas. Possible uses consist of serving as a benchmark for funding appropriations, as a political action committee reference tool, and more generally, as enlightenment to all individuals describing the full scope of veterinary medicine in Texas.

To improve the informational value to Texans, contributions are divided into five economic categories. Total output, value added, labor income, employment and indirect business tax effects are evaluated for each sector individually then added to arrive at an overall categorical impact on the state economy. (Methodology)

With nearly $1.72 billion in total output effects, veterinary medicine is a substantial contributor to the Texas economy. Over $578 million is returned to Texas' productive resources (land, labor, capital, management) from veterinary-related activities, while nearly $32 million is given back to the state government by way of indirect business taxes. Through job creation, 21,157 Texans gain employment opportunities, evidence of veterinary medicine's contribution to the Lone Star State. (Appendix A)

With a gross state product (GSP) of nearly $827 billion, an economic contribution from veterinary medicine of $1.72 billion makes up 0.21% of Texas' GSP for 2003. Texas' 4,507 veterinarians direct teams of professionals who return to the state economy an average estimated output of $381,629 per veterinarian in the form of total business sales.

The State of Texas is enriched through the veterinary medical profession, not only economically, but also by improving Texans' quality of life through the promotion of the human- animal bond; monitoring live animal trade to protect Texas' livestock and its producers; ensuring public health through food quality assurance; enforcing racetrack medicine compliance; and much more. The complexities of the profession and its contributions may be poorly recognized and undervalued since they have not been accounted for previously. By properly estimating the economic contribution each sector and its supporting industries circulate back into the state economy, a credible assessment of the total economic impact of the veterinary medical profession upon Texas is achieved.

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