VCA Antech, Inc.Los Angeles, CA, United States (NASDAQ (GS): WOOF)

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VCA Antech Competition

Now Viewing VCA Antech's competition in: Veterinary Services (primary)

Recent Developments

Vet Shortages may Impact Food Supply - Veterinary service shortages may adversely impact public health due to fewer vets treating farm animals used in the food supply. Vets are becoming scarce in rural areas: an estimated 500 US counties with large populations of food animals have no vets living in the county, according to the American Veterinary Medical Association (AVMA). More often, vets are choosing to live in metropolitan areas where they earn more, thereby creating a shortage of vets treating farm animals or working as government inspectors. The shortage is being worsened by an unchanging number of vet school graduates year-over-year and baby boomer retirements.

Rising Consumer Prices Boost Sales - Vet services are raising consumer prices to recoup rising operational and product costs. The prices consumers pay for pet services increased 5.9 percent in March 2008 from a year earlier, positively affecting vet dollar sales. Vet service sales are expected to grow in 2008 compared to 2007, according to the American Pet Products Manufacturers Association. Vet care is projected to rise 7.9 percent to $10.9 billion; supplies/OTC medicine, 5.1 percent to $10.3 billion; and pet services, such as grooming and boarding, 6.7 percent to $3.2 billion.

Technology Helps Vets - Vets say that they're more productive due to computing and communications technology, according to a survey from AVMA and the American Animal Hospital Association. Of vets, 88 percent report that the Internet increases their ability to access the latest science and research, 64 percent report improved efficiency, 61 percent that it helps them provide better animal care, and 32 percent say that it makes their practice more profitable.

Competitive Landscape

Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics. The profitability of an individual clinic depends on marketing skills, and by the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as more capital to invest in onsite diagnostic equipment. Small practices can compete effectively by specializing in particular animals or types of treatment, or by serving an exclusive area.

Veterinary Services Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US veterinary services is forecast to increase at an annual compounded rate of 6 percent between 2007 and 2012.

Veterinary Services Growth Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Medical advances drive demand
  • Efficient use of labor required
  • Risk: Slowing economy limits spending on non-essentials

Industries Where VCA Antech Competes

  • Consumer Services
    • Veterinary Care (primary)