Veterinary Economics: What 2026 May Hold, According to AVMA's Chief Economist

The numbers behind the economy are shifting, and those changes are starting to show up in how clients spend, how practices price, and how the profession plans for the future. Understanding where we stand today, and what might be coming next, can make all the difference in preparing your business for what's ahead.

Today's guest is Katelyn McCullock, Chief Economist at the American Veterinary Medical Association. With a background in agricultural and livestock markets, she now leads the AVMA's Veterinary Economics Division, which manages national surveys tracking practice ownership, the workforce, and pet ownership trends. Katelyn brings a clear-eyed view of how broader economic shifts connect to what's happening inside veterinary clinics.

In this episode, she explains what the latest data is showing about consumer confidence, inflation, and spending, and how those trends could affect practices heading into 2026. Katelyn also talks about why having a flexible plan, and knowing which levers to pull when things change, can help veterinary teams stay steady and make thoughtful decisions, even when the market feels unpredictable.

Show Notes:
[01:49] Katelyn shares her background in agricultural and resource economics from Colorado State University.
[02:14] She describes her early career as a dairy economist and her work in commodity markets, Farm Credit, and livestock consulting.
[04:04] Katelyn explains the mission of AVMA's Veterinary Economics Division and its four major annual surveys.
[05:24] She discusses the recent Veterinary Business and Economic Forum held in Denver and why it was a milestone event.
[06:15] Katelyn outlines the topics covered at the forum, including rural practice, financial statements, culture, and buying or selling a practice.
[07:00] The conversation shifts to current economic conditions and how they are influencing veterinary medicine.
[07:40] Katelyn introduces her framework for understanding economic uncertainty and risk.
[08:50] She talks about how delayed government data and shutdowns make it harder to see the full economic picture.
[09:18] Katelyn notes that consumer confidence remains low despite post-COVID recovery.
[10:20] She explains why consumer spending has stayed strong even as financial stress indicators rise.
[11:19] Katelyn reviews recent job creation numbers and why they signal caution for 2026.
[12:12] She identifies inflation as one of the biggest risks for veterinary businesses in the coming year.
[13:20] The discussion covers how recovery varies across different industries and job sectors.
[14:21] Katelyn explains the Federal Reserve's dual mandate and how interest rate changes affect the economy.
[15:35] She breaks down the connection between monetary policy, inflation, and consumer behavior.
[16:15] Katelyn outlines the ripple effects of financial stress and inflation on veterinary clients and clinics.
[17:10] She advises practices to think carefully about pricing strategies and client cost sensitivity.
[18:04] Katelyn warns about the possibility of a consumer-driven recession and what signs to watch for.
[19:45] She highlights how declining real wages have limited consumer purchasing power since COVID.
[20:23] Katelyn discusses data showing that veterinary visits are down even as revenue remains steady.
[21:48] She shares new pet ownership and demographic trends from the latest AVMA Sourcebook.
[23:12] Survey data reveals that most pet owners are highly satisfied with their veterinarians.
[23:43] Katelyn explains that convenience and affordability drive where clients buy food and medication.
[25:16] She encourages veterinary leaders to stress-test their business plans and prepare for multiple scenarios.
[26:30] The conversation turns to black swan events and why adaptability is key to resilience.
[27:42] Katelyn advises focusing on what can be controlled and making the best decisions with available information.
[28:31] Brian reflects on the takeaway between managing uncertainty versus managing risk.
[28:52] The episode closes with thanks to Katelyn McCullock and final remarks from the host.

Links and Resources:
Katelyn McCullock - American Veterinary Medical Association
Katelyn McCullock - LinkedIn
US Pet Ownership and Demographic Sourcebook