Employment
The industry employs 619,400 people directly. Some are part-time employees and some are seasonal so this equates to 338,500 full-time equivalent jobs.
The industry generates over 1.4 million FTE jobs across the U.S. as follows:
Racing - 136,400 - 472,800
Showing - 105,000 - 441,000
Recreation - 56,400 - 316,900
Other - 40,600 - 173,800
Total - 338,500 - 1,404,000
The horse industry directly employs more people than railroads, radio and television broadcasting, petroleum and coal products manufacturing and tobacco product manufacturing.
Taxes
The industry pays a total of $1.9 billion in taxes to federal, state and local governments as follows (in millions of dollars):
Federal - 710
State - 470
Local - 720
The Diversity of the Industry
The results of the study show that the horse business is a highly diverse industry that supports a wide variety of activities in all regions of the country. It combines the primarily rural activities of breeding, training, maintaining and riding horses with the more urban activities of operating racetracks, off-track betting parlors, horse shows and public sales.
Urban versus Rural
The study concludes that the horse industry has a direct economic effect in urban areas of $2.8 billion and employs 45,800 FTE employees and a direct economic effect in rural areas of $22.5 billion and employs 292,700 FTE employees.
Income Levels
The study dispels the misperception that the horse industry is an activity only for wealthy individuals. In fact, the horse industry is a diverse activity with stakeholders including recreational and show horse riders, and moderate-income track, show and stable employees and volunteers.
The median income for all U.S. households is $36,000, while the median income for horse-owning households is $60,000. Fourteen percent of horse-owning households have incomes under $25,000, 38% under $50,000 and 64% under $75,000.
Study Done by Barents Group
The National Economic Impact Study of the Horse Industry was commissioned by the AHC Foundation in 1996. The year-long study was conducted by Barents Group, LLC, the economic and fiscal consulting unit of KPMG Peat Marwick LLP.
The Economic Impact of the Horse Industry in 11 States:
California
•The California horse industry produces goods and services valued at $3.4 billion.
•The national industry has an $11.4 billion impact on the California economy when the multiplier effect of spending by industry suppliers and employees is taken into account. Accounting for off-site spending of spectators would result in an even higher figure.
•720,500 Californians are involved in the industry as horse owners, service providers, employees and volunteers. Even more participate as spectators.
•The California horse industry directly provides 36,000 full-time equivalent (FTE) jobs. Spending by suppliers and employees (in California and other states) generates additional jobs in California for a total employment impact of 124,400.
•There are 642,000 horses in California, over 70 percent of which are involved in showing and recreation.
Colorado
•The Colorado horse industry produces goods and services valued at $754 million.
•The national industry has a $2.6 billion impact on the Colorado economy when the multiplier effect of spending by industry suppliers and employees is taken into account. Accounting for off-site spending of spectators would result in an even higher figure.
•191,600 Coloradans are involved in the industry as horse owners, service providers, employees and volunteers. Even more participate as spectators.
•The Colorado horse industry directly provides 7,700 full-time equivalent (FTE) jobs. Spending by suppliers and employees (in Colorado and other states) generates additional jobs in Colorado for a total employment impact of 30,800.
•There are 194,000 horses in Colorado, over 60 percent of which are involved in showing and recreation.