According to IBISWorld, a leading market research company, a "return to disposable income will boost spending on race- and recreational horses" as well as on equine products in general in 2012.
IBISWorld predicts after a negative 2.7% growth from 2006-2011, we're poised for growth from the end of 2011 through 2016. And by some significant margins.
Profits on $1.6 billion in revenue should be around $82.2 million for more than 106,000 businesses in this sector. The recovery over this period is expected to get an initial bump in 2012, with revenue projected to grow 2.7%.
This is good news not only for those of us in the equine industry but for everyone who loves horses. Increased revenues means new players can enter the market and offer innovative products and services for those of us who ride.
Horses for recreation have never fallen out of favor in the U.S., even in tough times. Over two million people in the U.S. own the nearly ten million horses that reside here.
Over 4.5 million people are employed in the horse industry in some way.
And lest you think that horses are only for the well-to-do, nearly half of all horse owners have an income between $25,000 and $75,000. People love horses.
Through 2016, per capita disposable income is forecast to grow at an average annualized rate of 1.6%, twice the rate observed during the previous five years.
A depreciated U.S. dollar will boost export demand for horses, and equine products and services. Through 2016, the Horse and Other Equine Production industry is forecast to be on its way to pre-recessionary levels.
So this may be the year to get started on that dream project for your equine pals. Perhaps a new run-in, a new barn, or a new horse arena has been in the back of your mind for a while. Give us a call and let's talk about making your dream a reality.