Technological advances in recent years and aging baby boomers bode well for the industry.
Los Angeles, CA (PRWEB) November 12, 2012
For patients, economic pressures brought on by the recession have made it more difficult to afford or justify higher-priced cosmetic procedures and the products created and customized by firms in the $4.3-billion Dental Laboratories industry. With disposable income declining, individuals were less willing to pay for dental services out of pocket, even if they were already paying for these services directly before the recession. As unemployment increased, dentist visits also decreased among people who lost insurance coverage, which reduced demand for dental laboratory services. During the five years to 2012, revenue is expected to fall an average of 2.8% per year, including a 0.1% increase from 2011 to 2012, according to IBISWorld industry analyst Nima Samadi.
Nevertheless, rapid technological changes within the Dental Laboratories industry in the past five years, including new filling, bonding and implant compounds such as all-ceramic restorative systems; cutting edge computer-aided design/computer-aided manufacturing (CAD/CAM systems), and computer-imaging including 3-D systems, have helped dental laboratories evolve and have increased long-term demand for their services. These technological advances have improved efficiency, allowing dental laboratories to create more dental products in a given day.
Revenue will increase by 2017, Samadi says. Revenue growth is expected to pick up in 2013 as healthcare reform legislation increases the number of insured Americans. As the job market improves, increased dental coverage from employers and rising disposable income will result in more patient visits and more demand for dental laboratories services and products. The aging population also presents the industry with an opportunity for growth as well as challenges. In 2011, the oldest segment of the baby-boom generation reached 65 years of age, marking the beginning of an important demographic shift for dentistry and, consequently, dental laboratories. As individuals age, dental health generally declines and requires more maintenance. As a result, growth in the number of elderly Americans increases demand for dental implants and other cosmetic dental procedures, which in turn increases demand for dental laboratories. The Dental Laboratories industry is highly fragmented and has a low level of concentration. For more information, visit IBISWorld’s Dental Laboratories in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that manufacture dentures, crowns, bridges and orthodontic products customized for individual application as prescribed by licensed dentists.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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