NATIONAL ECONOMIC IMPACT STUDY

In 2004, the American Horse Council (AHC) commissioned Deloitte Consulting LLP to develop a current economic impact analysis of the horse industry in the United States. The study, issued in July 2005, updates and expands upon the original economic impact study released by Barents Group LLC in 1996 which established the size of the horse industry and, for the first time, its impact on the national economy.

Once again, The Jockey Club was among the industry organizations to provide major funding support for the updated study. Others include American Association of Equine Practitioners, American Quarter Horse Association, American Paint Horse Association, Keeneland Association, National Thoroughbred Racing Association/Breeders’ Cup Ltd., Thoroughbred Owners and Breeders Association, U.S. Equestrian Federation and U.S. Trotting Association. 

Copies of the Deloitte study are available for purchase by contacting the AHC at (202) 296-4031; or by visiting the AHC web site at http://www.horsecouncil.org.


  Impact of the Horse Industry on the US Economy

Total Impact on the US Gross Domestic Product (GDP) $101.5 billion
  • Including direct, indirect and induced effects.
Total Full-Time Equivalent Jobs Generated (FTE) 1.4 million
 
Total Taxes & Fees Paid including $1.9 billion
 
Federal 588 million
State 1,017 million
Local 275 million
Direct Value of Horse-Related Goods and Services $39 billion
 

Diversity of the Horse Industry

By Activity

The service produced by three activities (racing, showing and recreation) each contribute over 25 per cent of the total value of goods and services produced by the industry.

  NUMBER OF HORSES NUMBER 0F PARTICIPANTS GDP* CONTRIBUTION (PERCENT) GDP* ECONOMIC IMPACT (PERCENT) FTE EMPLOYMENT (PERCENT) FTE JOBS GENERATED (PERCENT)
Racing    844,531 N/A 10,697 (27.5) 26,100 (25.7) 146,625 (32.3) 383,826 (27.2)
Showing 2,718,954 N/A 10,759 (27.7) 28,800 (28.4)   99,051 (21.8) 380,416 (27.0)
Recreation 3,906,923 N/A 11,886 (30.6) 32,000 (31.5) 128,324 (28.3) 435,082 (30.8)
Other 1,752,439 N/A   5,501 (14.2) 14,700 (14.5)   79,612 (17.6) 212,010 (15.0)
Totals 9,222,847 4,659,719 38,843           101,500           453,612           1,411,333          


* Dollars in millions

 

By Breed

Although the Thoroughbred accounts for just 14 percent of the total horse population in the U.S., the breed generates 33 percent of the horse industry’s total economic impact


Number of Horses by Breed and Activity

BREED
RACING
SHOWING 
RECREATION 
OTHER
TOTAL
Thoroughbreds
559,322
   336,992
   228,290
167,203
1,291,807
Quarter Horses
127,720
1,078,639
1,353,236
728,707
3,288,302
Other Horses
157,489
1,303,324
2,325,398
856,528
4,642,739
Total
844,531
2,718,954
3,906,923
1,752,439 
9,222,847

 


Total Effect on GDP by Breed and Activity*

BREED

 RACING SHOWING RECREATION OTHER TOTAL
Thoroughbreds 20,271   6,089   3,414 3,424 33,598
Quarter Horses   1,627 10,822 10,582 4,539 27,569
Other Horses   3,726 11,877 17,979 6,788 40,371
Total 26,124 28,788 31,975 14,651 101,538


* Dollars in millions

 

By Demographics

The horse industry includes participants from all socio-economic strata. Ownership is broad-based among income classes, with 33.9 percent earning under $50,000 and 24.2 percent over $100,000.

Distribution of Households by Income Class

2004 HOUSEHOLD INCOME CLASS PERCENT
OF ALL
HORSE-OWNER HOUSEHOLDS
Under $25,000     
10.7
$25,000 – 49,999
23.2
$50,000 – 74,999
22.3
$75,000 – 99,999
15.7
$100,000 +          
24.2
Not Reported      
  3.9
           Total
100.0 

 

By Location

The horse industry is active in every state of the union, and contributes to both the urban and rural communities.

Distribution of Households by Location

AREA

 OWNERS PERCENT
Urban    836,133 42.8%
Rural 1,119,694 57.2%
Total 1,955,827 100%


Size of the Horse Industry

Number of Horses 9.2 million
Number of Industry Participants 4.7 million
  • Including owners (1.96 million), non-horse-owning service providers such as jockeys, drivers, trainers, veterinarians and horse transportation providers; race tracks; shows; employees of these groups; and family members of owners and other volunteers involved in the care of horses without pay excluding spectators.
 


Economic Relationship of Breeding & Racing

Number of Horses in Training 416,708
Number of Horses Involved in Breeding for the Race Track 427,823
Total 844,531


Economic Impact of the Racing Sector

DIRECT

GDP CONTRIBUTION*

GDP

ECONOMIC IMPACT*

FTE

JOBS PROVIDED**

FTE

JOBS GENERATED
Race Tracks & OTB Operations
  5,382
11,653
42,257
126,190
Horses in Training
  3,068
  8,507
65,792
158,350
Breeding
  2,247
  5,964
38,575
  99,286
Total
10,697
26,124
146,624
383,826


* Dollars in millions


** Full-time employment