61 minutes ebms amsterdam

The Year in Reviewin 61 MINUTES

The Year in Reviewin 61 MINUTES

Joop Loomans Joop Loomans

Robert Magnus Robert Magnus

Mike PownallMike Pownall

The Economy in Recovery?

The Economy in Recovery?

TechnologyA Vets Best Friend?Technology

A Vets Best Friend?

Work/Life Balance?Students

Jobs/Debt!!

Work/Life Balance?Students

Jobs/Debt!!

The Global Economy in Crisis

The Global Economy in Crisis

……it effects the veterinary communityit effects the veterinary community

Challenging TimesChallenging Times

20082008

20092009

20102010

……The FutureThe Future

Financial Investment Financial Investment BankersBankers

Wall StreetWall StreetRating CompaniesRating CompaniesThe ConsumerThe Consumer

Responsibility & Accountability

Responsibility & Accountability

The Year 2000Commodity Future Modernization Act

The Year 2000Commodity Future Modernization Act

Bill Clinton - PresidentBill Clinton - PresidentAlan Greenspan – Federal Alan Greenspan – Federal

Reserve ChairReserve Chair CongressCongress

Wall Street Exemption Wall Street Exemption Under Gaming LawsUnder Gaming LawsWall Street Exemption Wall Street Exemption Under Gaming LawsUnder Gaming Laws

Passed Passed UnanimouslyUnanimously

Financial InstrumentsDerivatives, Mortgage Back Securities

Financial InstrumentsDerivatives, Mortgage Back Securities

Derivative: Derivative: A financial instrument whose value is based on A financial instrument whose value is based on something elsesomething else

“basically it’s a side bet”

The Bet:1. Whether interest rates would go up or down2. Whether people would default on their mortgages

Credit default swaps

Insurance Contracts

$Poor Performing

Asset

No Regulatio

n

No Asset Coverag

e

Economic DriversEconomic DriversFinancial InstitutionsFinancial Institutions• Incentives• Regulatory failure

Housing / Mortgage MarketHousing / Mortgage Market• Over-built 2003-07• Over-priced• Irresponsible financing

Real Estate MarketReal Estate Market• No skin in the game – derivatives &

securities

Labor MarketLabor Market• Lag effect of consumer spending

The StoryThe Story

2000 - 20082000 - 2008

2008 - Today2008 - Today

Adjust Adjust InflationInflation

StimulatStimulate e

GrowthGrowth

Money Supply Interest RatesMoney Supply Interest Rates

Money Supply Interest RatesMoney Supply Interest Rates

Stimulus Packages World Wide

Stimulus Packages World Wide

Monetary Monetary PolicyPolicy

Paris, France and Whitehouse Station, NJ. – March 9, 2010 –

Sanofi-aventis and Merck to create a Global Leader in Animal Health

Sanofi-aventis exercises its option to combine Merial with Intervet/Schering-Plough in a new equally-owned Joint Venture

with Merck

Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) and Merck & Co., Inc. (NYSE: MRK) announced today that sanofi-aventis has exercised its option to combine Merial with Intervet/Schering-Plough, Merck’s Animal Health business, to create a global leader in Animal Health.

Industry Consolodation

Mergers in Pharmaceutical Industry

Mergers in Pharmaceutical Industry

•Becomes the world largest animal health company with annual sales of $ 5.2 billion based on 2009 sales.

•Second is Pfizer Animal Health/Fort Dodge with annual sales of $ 3.6 billion.

•Total global animal health market 2009 $ 19 billion.

Animal+ Pharm 19th March 2010

What’s in it for us?What’s in it for us?

•Deal is subject to regulatory approval in all the main markets worldwide.

•Businesses complement each other.

•However overlap in products resulting in divesture.

•Ready to operate some time in 2011.

•Opportunities for sales and cost synergies.

•Products remain but change “ownership”.

•More focused R&D power?

Innovation in VMP’sInnovation in VMP’s

•Dogs benefited from overwhelming majority of innovation focus the last 10 years.

•Europe has a higher level of veterinary pharmaceutical innovations than the US the last decade.

•Veterinary specialties the most innovative category.

•Significant focus on anti parasitic.

Vetnosis 2010

Social NetworkingSocial Networking•More grandparents on Facebook than high

schoolers

•Italy is most active in world on Social Networks as of Jan, 2010

•Facebook & You Tube are largest networks

•More NA markets using SN(58%) vs Europeans (34%)

•In USA people value internet more than TV and radio

Social Networking - Facebook


•>500 million users

•1/2 of active users go on every day.

•1/6 internet pages in UK are Facebook

•Iceland has most penetraton 63% followed by Canada then Denmark

•Mobile users are twice as active. (<1/3)

•#3 site used by US users older than 65.

Social Networking - Linkedin

Social Networking - Linkedin

•Linkedin

Social Networking - Twitter

Conversations with your clients!

Social Networking - Twitter

Conversations with your clients!

Commercial Real EstateCommercial Real Estate

Commercial Real EstateCommercial Real Estate• Next wave of real estate defaults• Rising unemployment• Another round of banking “crisis”• Real Estate “value” decreasing• Short term notes = coming due• New issues • New opportunities

Global Competitiveness Report Global Competitiveness Report

Assesses the ability of countries to provide Assesses the ability of countries to provide high levels of prosperityhigh levels of prosperity

2008-2009 2008-2009 rankingsrankings

1. United States 5.75.744

2. Switzerland 5.65.611

3. Denmark 5.55.588

4. Sweden 5.55.533

5. Singapore 5.55.533

6. Findland 5.55.500

7. Germany 5.45.466

8. Netherlands 5.45.411

9. Japan 5.35.388

10.

Canada 5.35.377

1. Switzerland 5.65.600

2. United States 5.55.599

3. Singapore 5.55.555

4. Sweden 5.55.511

5. Denmark 5.45.466

6. Finland 5.45.433

7. Germany 5.35.377

8. Japan 5.35.377

9. Canada 5.35.333

10.

Netherlands 5.35.322

2009-2010 2009-2010 rankingsrankings

Ease of Doing Business Indexcreated by the World Bank

Ease of Doing Business Indexcreated by the World Bank

Higher rankings indicate Higher rankings indicate better, usually simpler better, usually simpler regulations for businesses and regulations for businesses and stronger protections of stronger protections of property rights property rights

2010 - 2009 Business Index Ranking

2010 - 2009 Business Index Ranking 1. Singapore 2. New Zealand 3. Hong Kong 4. United States 6. United

Kingdom 5. Denmark 7. Ireland 8. Canada 9. Australia 10. Norway

Cloud ComputingCloud Computing

•Data stored on server farms

•Safe

•Information accessible via the web only

•Amazon & Google

•Microsoft Office 2010

•Image Archiving

Cloud ComputingCloud Computing

AMAZONServer

CUSTOMERS

CollaborationCollaborationyelp.com

•Basecamp

•Yelp

•Go To Meeting

•Google Docs

YelpYelp

Everyone is Talking About You!Everyone is Talking About You!

Google DocsGoogle Docs

• Almost 1/3 of the total population in the Netherlands is member of a sports organization

• There is a trend in western society to work less hours and work more part-time.

• Leisure industry is booming!

• In the European Union, the Netherlands has the shortest average working week and the highest % of part-time workers

• In 2002 34 hours

• In 2006 31 hours

LifestylesLifestyles

Lifestyle changes / increased importance of leisure

Lifestyle changes / increased importance of leisureEU Stimulus - Rural DevelopmentEU Stimulus - Rural Development

Policy 2007 – 2013

• Increase diversity of farming

• Development of non agricultural sector

• Services of social value

• Providing employment in rural areas

• Make rural areas more attractive

• Special equine experiences

• There is a lot of EU money available for rural development!

EU Stimulus - Rural DevelopmentEU Stimulus - Rural Development

UnemploymentUnemployment

Regional Comparisons

U.S. Public DebtU.S. Public Debt•1980 Debt 33% of GDP $909

billion

•1990 Debt 55.9% of GDP $ 3.2 trillion

•2001 Debt 55.9% of GDP $ 5.7 trillion

•2009 Debt 90% of GDP $14.3 trillion

•2010 Debt forecast 100% of GDP

European UnionEuropean Union

GDP (PPP) list in international dollars


Rank Country 2007 2008 2009 est. 2010 est.

— World 66,121.542 69,489.851 69,743.258 72,980.183

— European Union 14,796.440 15,262.820 14,851.385 15,147.514

1 Germany 2,822.211 2,918.474 2,806.987 2,859.474

2 Russia 2,099.663 2,264.608 2,126.390 2,192.048

3 United Kingdom 2,165.345 2,228.001 2,163.525 2,216.580

4 France 2,078.867 2,130.126 2,112.323 2,163.977

5 Italy 1,798.208 1,817.527 1,750.903 1,781.946

6 Spain 1,345.644 1,395.421 1,363.793 1,374.353

7 Turkey 888.095 915.212 869.068 915.022

8 Netherlands 650.341 677.490 659.344 673.906

9 Poland 624.055 668.551 685.594 711.313



Rank Country 2007 2008 2009 est. 2010 est.

10 Belgium 377.977 389.793 383.273 389.293

11 Sweden 336.036 342.682 331.223 340.230

12 Greece 325.011 341.688 344.404 349.448

13 Ukraine 323.422 337.268 294.564 307.070

14 Austria 317.256 330.669 322.983 328.916

15 Switzerland 303.758 315.768 314.437 320.762

16 Romania 247.533 270.772 251.741 256.857

17 Czech Republic 249.570 261.777 254.375 261.620

18 Norway 246.605 257.243 256.273 263.505

19 Portugal 231.215 236.049 232.538 237.037

20 Denmark 202.429 204.269 202.407 207.388

Economy of GermanyEconomy of Germany

•Germany is the largest national economy in Europe, the fourth-largest by nominal GDP in the world, and fifth by GDP (PPP) in 2008.

•Germany is the world's second largest exporter with $1.170 trillion exported in 2009 (Eurozone countries are included). Exports account for more than one-third of national output.

Today’s World OpportunitiesToday’s World Opportunities

•Niche Markets

•Sector Growth

•Sustainable Economies

•Identifiable Environments

Equine Industry?Equine Industry?

Mobile ComputingMobile Computing

• Blackberry/iPhone/Droid//Nokia in NA

• Nokia/iPhone/Droid/Blackbery in Europe

• More people will access the web by mobile devises than laptops/desktops by 2013.

• >200,000 Apps

• 4 billion business by 2010 (Business Week 11/2/09)

• 13 billion business in 2013 www.techcrunch.com

iPadiPad

•>350,000 sold in first week

•14 million this year alone

•Practice Software

•Client Education

skype.comskype.comBusiness Buddy Tool

Map PointMap Point

Equine Vets Under Attack

Equine Vets Under Attack

Practice BurnoutPractice Burnout

Student Debt-the RealityStudent Debt-the Reality

Debt

Starting salaries

AVMA

106%

56%

North America

USA Student Debt - the Reality

USA Student Debt - the Reality

• Average debt-2009 graduate-US Average debt-2009 graduate-US veterinary collegeveterinary college

$129,976 (median debt = $125,000) $129,976 (median debt = $125,000) 89% of those graduating had student 89% of those graduating had student debtdebt

90% of the debt was incurred while in 90% of the debt was incurred while in veterinary schoolveterinary school

• 32% of the 2009 graduates have debt in 32% of the 2009 graduates have debt in excess of $150,000excess of $150,000

11% have debt in excess of $200,00011% have debt in excess of $200,000Some in excess of $250,000 Some in excess of $250,000

JAVMA 9/1/09JAVMA 9/1/09

USA Student Economic Realities

USA Student Economic Realities

Salary

Year Debt Practice Debt/Salary

1983 $18,897 $19,872 95.10%

1995 $45,251 $31,925 141.70%

2008 $119,658

$61,518 194.50%

Student Debt to Salary Ratios over Time

Comparisons - Professionals

Comparisons - Professionals

BLS 5/08

USA Debt vs Earnings Problem?

USA Debt vs Earnings Problem?

• Cost of veterinary education has risen dramatically -about 31% over four years (CPI increase over same period ~ 16%)

• School funding down dramatically

• Increase in tuition exacerbated by the recent increase in interest charged on government and private student loans

Private Clinical Practice % Mean 1st Year

$

Large animal exclusive 2.5 62,424

Large animal predominant 2.7 57,745

Mixed animal 9.3 58,522

Small animal predominant 7.6 61,753

Small animal exclusive 31.5 64,744

Equine 3.3 41,636

USA Veterinarian Starting Salaries 2008

USA Veterinarian Starting Salaries 2008

Social-economic survey 2010 Netherlands (7.000

academics)


academics)

Veterinary medicine:

• Find (veterinary) job within 3 months: ++

• Salary after 1.5 year: +

• Permanent job after 1.5 years: --

• ++ = top 10

• + = top 20

• -- = lowest 10Elsevier/University of Amsterdam


academics)


academics)Income after 1.5 years:

Income before tax Hours Male

• Dentistry € 5,900 29.2 40%

• Fiscal law € 3,225 39.3 86%

• Medicine € 2,975 39.6 31%

• Economy € 2,850 37.3 67%

• Construction € 2,825 39.4 70%

• Veterinary € 2,725 35.2 23%

Elsevier/University of Amsterdam

KNMvD 2009

• Female equine vets work 20% fewer hours.

• Female equine vets are on average 6 years younger.

• No gender differences with respect to diseases and injuries, sick leave, and occupational disabilities.

• Female equine vets are more often employees than employers.

• 50% of the female vets who gave birth, left practice for some months and returned to work on same level.

• Female equine vets had to take care of management and work changes related to pregnancy by themselves.

Loomans et al 2008

Worldwide TrendFemale Dominated Profession within

10 years

Hot off the PressUS TB registrations

Down 10%

Lowest since 1973

•Ireland (Karin Hennessy UCD, 2009)

Coverings thoroughbreds Europe down 15-20%

Coverings warm blood Ireland down 40%

•The Netherlands

Auction prices Warm blood foals 2009 down 16%

Warm blood Coverings

•2008 15,889

•2009 down 10%

Friesian Coverings

•2008 7,475

•2009 down 10%

Sales In North AmericaSales In North America

•Keeneland Sales

•2008 ave $90,984, med $37,000

•2009 ave $60,734, med $22,000

•Ave -33%, med -41%

•Lexington Select Yearling Sales (Standardbreds)

•med $25,000, +13.6% over Tbs

Business ResourcesBusiness Resources

•Drive - Daniel Pink

•Flip The Funnel - Jeff Jaffe

•Switch - Chip & Dan Heath

•Linchpin - Seth Godin

Books of 2010 so farBooks of 2010 so far

Business ResourcesBusiness Resources

• Kindle - for how long?

• Magazines

• Business Week

• The Economist

• Inc

• Fast Company

• Blogs

• Podcasts - iTunes

• What are European Resources

BlogsBlogs•www.equinevetbusiness.com

•Links with EBMS website

•AAEP Practice Management Facebook Page

ResourcesResources

• AAEP.org

• Veterinary Study Groups (VMG Groups)

• Consultants VetPartners.org

• Equine Best Practices

• Benchmarking

• NCEVI.org

• AAEP.org

• Veterinary Study Groups (VMG Groups)

• Consultants VetPartners.org

• Equine Best Practices

• Benchmarking

• NCEVI.org

• Government Web Sites– Bea.gov – Bls.gov

• Networking • Other industries• Community Business

Leaders & Friends

2010 Workshop2010 Workshop

November 5-6, 2010Indianapolis, Indiana

2010 AAEP ConventionBaltimore, Maryland

2010 AAEP ConventionBaltimore, Maryland

We want to hear your ideas and We want to hear your ideas and suggestions as we build upon this new suggestions as we build upon this new

initiative!initiative!

Thank YouThank You