Outlook for Veterinary Services
A snapshot of the Australian Veterinary sector indicates growth both for this financial year continuing through to 2020.
With over 3,300 businesses across Australia, Veterinary services are growing revenues, not from seeing an increasing number of animals, but from advances in procedures and a trend for pet owners to spend more on their cats and dogs.
Growth has been seen in the demand for vaccinations, dentistry and diagnostic services. Around 60% of revenue comes from households, predominantly urban ones. Agricultural veterinary business is increasing steadily particularly for cattle whilst racing, breeders and zoo business is in decline.
Veterinary practices are still generally small. However, deregulation has led to several large companies acquiring networks. These are continuing to grow so the outlook for competition is expected to increase.
The following success factors have been identified:
- Appropriate facilities
- Targeted services to chosen market segments
- Effective cost control
- Building a good reputation
- Looking for economies of scale
The industry is labour intensive and needs to invest in equipment, vehicles and related goods. This includes increasing investment in technologically advanced equipment such as examination, imaging, diagnostic and surgical items.
The future for Veterinary services overall looks positive with an expected annualised revenue increase of 3% over 5 years.
* Source IBISWorld Veterinary Services in Australia
How can Classic Funding Group help
- Equipment loans to ensure your practice is investing in the latest tools and facilities
- Vehicle loans especially for rural practices to help with the day to day cash flow
- For larger veterinary networks with a wide range of suppliers, a debtor finance facility could be useful to help with further expansion or short term additional labour costs.