Market Trends

US Dental Laboratories
2007

Changes in the Laboratory Industry and Technician Profession

CAD/CAM
Offshore (competition and collaboration)
Dental Client Demographics
Government Regulation and Enforcement
Digital Impressions
Dental Materials
Aging Workforce
Increasing market demand/dental patients

Dental Laboratories A Changing Demographic

Approximately 12,500 dental labs and 48,000 technicians in U.S.

5,000 of those are single technician labs

Consolidation reducing customer ranks

Many technicians are reaching retirement age

By 2014, 11,000 technician employees will leave the profession

There are only 21 ADA accredited dental laboratory technology programs

remaining in the United States. Down from 34 just 8 years ago. Down from
just over 50, 20 years ago

Demand for Dental Services

Increase in educational level of population

Increase in disposable income

Two wage earner couples
Increase in third party coverage

Increased general health consciousness

Fitness, diet
Smoking and alcohol consumption

Increased awareness of dental health

Demand for Dental Services (2)

Increase in number of older Americans

We are living longer
More teeth at risk
Increased income

Low but growing utilization rate

Increasing third party payments

Top Five Issues Impacting the Dental Laboratory Industry and Dental Technician Profession
The Next five years as determined by the NADL

1. Proliferation and cost of new technology

2. Globalization of dental devices/import trade
3. Shortage of qualified technicians and managers
4. Federal regulation of processes and facilities
5. Insurance driven dentistry/control of market through reimbursement standards

Percentage of the U.S. population that visited a dentist

within the past year by age group

Data source: The Third National Health and Nutrition Examination Survey (NHANES III) 1988-1994, National Center
for Health Statistics, Centers for Disease Control and Prevention.

7.1.1

Solid Dental
Industry Growth
Total Dental Products and Services Spending
($ in billions)

$180
$160

$167

Projected Growth: 7%

$140

$125

$120
$100
$80
$60
$40

$50

$54

$57

$62

$68

$73

$77

$82

$87

$20
$0
1997 1998 1999

2000 2001 2002 2003 2004 2005P 2010P 2015P

Source: Centers for Medicare and Medicaid Services

Chart 4-1: Dental Prosthetics Market Value

U.S., 2004 - 2014
16,000

12.0%

10.0%

12,000
8.0%

10,000
8,000

6.0%

6,000

4.0%

4,000
2.0%

2,000
0

0.0%
2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

Market Vlaue (US$ Millions)

14,000

Chart 4-3: Unit Share by Prosthetics Type

U.S., 2007

Dentures 7.8%
Veneers 6.0%
Inlays/Onlays 3.4%
Crowns 63.0%

Bridges 19.8%

Chart 5-1: Crown & Bridge Market Value

U.S., 2004 - 2014
14,000

12.0%

10.0%

10,000
8.0%
8,000
6.0%
6,000
4.0%
4,000
2.0%

2,000
0

0.0%
2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

Market Value (US$ Millions)

12,000

Chart 5-2: Crown & Bridge Market by Material Type

U.S., 2007
Full-cast 6.5%
PFM Precious 29.7%
All-ceramic 24.5%

PFM Semi-precious
18.0%

PFM Non-precious
21.3%

Chart 5-3: Crowns & Bridges Segmented by Material Type

U.S., 2004 - 2014
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2002

2004
Full-cast

2006
All-ceramic

2008
PFM Non-precious

2010

2012
PFM Semi-precious

2014
PFM Precious

2016

Chart 5-4: Number of Crown Units Sold

U.S., 2004 - 2014
8.0%
7.0%
50
6.0%
40
5.0%
30

4.0%
3.0%

20
2.0%
10
1.0%

0.0%
2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

NUmber of Units Sold (Millions)

60

170

5.0%

165

4.5%

160

4.0%
3.5%

155

3.0%

150

2.5%
145

2.0%

140

1.5%

135

1.0%

130

0.5%

125

0.0%

2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

NUmber of Units Sold (Millions)

Chart 5-5: Average Selling Price per Crown Unit

U.S., 2004 - 2014

18,000,000

8.0%

16,000,000

7.0%

14,000,000

6.0%

12,000,000

5.0%

10,000,000
4.0%
8,000,000
3.0%

6,000,000

2.0%

4,000,000
2,000,000

1.0%

0.0%
2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

NUmber of Units Sold (Millions)

Chart 5-6: Number of Units of Bridges Sold

U.S., 2004 - 2014

Chart 5-5: Average Selling Price per Bridge Unit

U.S., 2004 - 2014
185

3.0%

2.5%

175

170

2.0%

165
160

1.5%

155
1.0%

150

145

0.5%

140
135

0.0%
2004

2005

2006

2007

2008

2009

Year

2010

2011

2012

2013

2014

Annual Growth Rate

NUmber of Units Sold (Millions)

180

Chart 4-7: Average Price of Gold

U.S., 2004 - 2007

NUmber of Units Sold (Millions)

700
600
500
400
300

200
100
0
2004

2005

2006

Year

2007

Chart 8-3: Leading Competitors in the Market for Dental Alloys

U.S., 2007

Ivoclar 11.0%

Dentsply 10.0%
Jensen 9.0%

Pentron 9.0%
Argen 45.0%

Aurident 4.0%
Captek 3.0%
Sterngold 3.0%
Metalor 2.0%
Other 4.0%

Market for Dental Porcelain Powder

U.S., 2004 - 2014

Year

Units Sold

Growth (%)

2004 36,276,880

Quantity per
Unit (g)

ASP per
ASP per Unit
Gram (US$)
(US$)
Growth (%)

1.0

$0.87

$0.87

Market Value
(US$)

Growth

$31,560,885

2005 39,350,421

8.5%

1.0

$0.88

$0.88

1.1%

$34,628,371

9.7%

2006 42,414,833

7.8%

1.0

$0.89

$0.89

1.1%

$37,749,201

9.0%

2007 45,442,500

7.1%

1.0

$0.90

$0.90

1.1%

$40,898,250

8.3%

2008 48,704,592

7.2%

1.0

$0.91

$0.91

1.1%

$44,321,179

8.4%

2009 52,034,048

6.8%

1.0

$0.92

$0.92

1.1%

$47,871,324

8.0%

2010 55,650,506

7.0%

1.0

$0.93

$0.93

1.1%

$51,754,970

8.1%

2011 59,580,181

7.1%

1.0

$0.94

$0.94

1.1%

$56,005,370

8.2%

2012 64,010,737

7.4%

1.0

$0.95

$0.95

1.1%

$60,810,200

8.6%

2013 68,521,693

7.0%

1.0

$0.96

$0.96

1.1%

$65,780,825

8.2%

2014 73,412,654

7.1%

1.0

$0.97

$0.97

1.1%

$71,210,274

8.3%

7.1%

1.1%

8.2%

Chart 8-4: Market for Dental Porcelain Powder and Growth Rates
U.S., 2004 - 2014

$80,000,000

12.0%

10.0%

$60,000,000
8.0%

$50,000,000
$40,000,000

6.0%

$30,000,000

4.0%

$20,000,000
2.0%

$10,000,000
$0

0.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Year

Annual Growth Rate

NUmber of Units Sold (Millions)

$70,000,000