Demand for routine and specialized dental procedures kept revenue steady through the recession
Los Angeles, CA (PRWEB) August 20, 2012
Over the past five years, the Dental Clinical Instrument Manufacturing industry has been growing steadily. IBISWorld expects industry revenue to grow at an annualized rate of 4.7% to about $1.2 billion over the five years to 2012. Despite a slight downturn during the recession, the industry proved resilient thanks to consistent demand for routine dental procedures from the growing population of Americans over the age of 65 and rising demand for preventative dental care, cosmetic dental procedures and other specialized practices. “More frequent trips for standard teeth cleaning and other services boosted revenue performance overall as dental care establishments kept their offices stocked with newly manufactured clinical instruments,” says IBISWorld industry analyst Antonio Danova. “Concurrently, increased demand for more specialized procedures created greater industry profitability as more dental laboratories demanded high-end, high-margin clinical instruments for such procedures.”
In addition to changing demographic trends, Dental Clinical Instrument Manufacturing industry performance over the past five years has been accentuated by growth in total US health expenditure. Health expenditure describes all public and private funding on activities that promote health and prevent disease, including dental care. Over the five years to 2012, total health expenditure in the United States has grown at an annualized rate of 4.6% to about $2.8 trillion. This growth in funding gave dentist offices and dental laboratories greater opportunities to restock their clinical instrument supply, benefiting manufacturers in the long run. This trend gained steam after the recession and will continue through the remainder of the year, with expected growth of 3.4% during 2012. “Many of the industry's smaller firms operate on a localized or regional basis or concentrate on developing specialized technology for various dental procedures,” adds Danova. “Often times, larger companies will acquire smaller manufacturing firms to increase their range of products or their market scope.” This was the case with major player Danaher, when the firm acquired two dental instrument manufacturers, Kavo and Gendex, in 2004 to facilitate its entry into the industry. As larger firms continue to grow through acquisitions, industry concentration is expected to increase.
Over the next five years, the pace of industry growth will be dictated by heavy investment into research and development (R&D) by the industry's largest firms as well as a shift toward higher-skilled labor. These trends will help industry operators continue producing specialized instruments, tools and other equipment to meet the continually changing dental care needs of consumers. As a result, IBISWorld projects that industry revenue will grow over the five years to 2017. In addition, greater production of high-end products will spur profitability. For more information, visit IBISWorld’s Dental Clinical Instrument Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures tools and other instruments used in clinical practices by dentist offices and dental laboratories. These include diagnostic and procedural tools, cements and other impression materials, instrument storage and cleaning systems. This industry does not include dentist office equipment such as dental chairs, x-ray machines or other heavy duty furnishings.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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