New York, NY (PRWEB) January 01, 2014 -- The Dentists industry knew the drill over the past five years and has thus benefited from favorable demographic trends, technological advances and mounting awareness of oral hygiene. Furthermore, private dental clinics were one of the nation's most profitable industries during the economic downturn. This profitability is partially attributed to industry operators being less dependent on reimbursement from healthcare insurers, as many patients pay for dental treatments out of pocket. However, better preventive care at home has slightly suppressed revenue growth. Improved toothbrushes and formulas for toothpastes that promote tooth enamel health have slightly mitigated demand for traditional dental services. According to IBISWorld Industry Analyst Sarah Turk, “During the five years to 2013, IBISWorld expects revenue to grow at an annualized rate of 1.5% to $118.8 billion, including 3.1% growth in 2013.”
Meanwhile, the cost of dental education has soared over the past five years. Weighed down with debt, dental graduates have been hindered from starting practices, which require significant capital investments. Rapid advancements in technology have also made it expensive to cover overhead costs for dental office equipment. These factors have led to the growth of dental practice management companies (DPMCs), large companies that provide services for multiple dental offices. Because DPMCs also buy independent practices, their growing dominance has led to industry consolidation. In the five years to 2013, the number of industry operators is expected to increase at an annualized rate of 0.4% to 164,966. Continuous consolidation will be one of several factors that are anticipated to bolster industry profit margins from 2013 to 2018.
The five-year outlook for dentists is promising, with favorable demographic trends, an improving economic environment and growing access to dental insurance boosting revenue over the period. IBISWorld forecasts revenue to increase in the five years to 2018. “Revenue is projected to jump in 2014 as healthcare reform legislation increases the number of insured individuals,” says Turk. In addition, as the job market improves, increased dental coverage from employers and rising disposable income will result in more patient visits. DPMCs will continue to penetrate the industry and grow in size as more dentists recognize the benefits of spreading costs across practices.
In 2013, IBISWorld estimates there are 172,218 dentist offices and clinics operating in the United States and generating annual revenue of $118.8 billion. No major companies dominate this highly fragmented industry. Nearly 93.1% of dentist offices have fewer than 20 employees, based on the latest available US Census Bureau's data from 2010. According to the US Surgeon General, most private dental practices consist of either one dentist (68.7%) or two (19.6%). The remainder (11.7%) includes group practices of three or more dentists who share expenses and revenue.
For more information, visit IBISWorld’s Dentists in the US industry report page.
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IBISWorld industry Report Key Topics
The Dentists industry includes firms of health practitioners with Doctor of Dental Medicine (DDM), Doctor of Dental Surgery (DDS) or Doctor of Dental Science (DDSc) degrees. Industry firms are primarily engaged in the independent practice of general or specialized dentistry or dental surgery. These practitioners operate private or group practices in their own offices (e.g. centers or clinics).
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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