The State of the Dental Lab Industry
Yesterday
Today
Tomorrow
Norm Weinstock, Chairman
May 8, 2015
2008-2014
Population
320,000,000
315,000,000
310,000,000
305,000,000
300,000,000
295,000,000
Technicians
+4%
C&B units
50,000,000
45,000,000
40,000,000
15,000
10,000
5,000
-18%
+17%
2,900,000
2,800,000
2,700,000
2,600,000
2,500,000
2,400,000
2,300,000
-38%
0
Partial Dentures
Full Dentures
60,000,000
55,000,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Labs
4,000,000
+13%
3,000,000
+27%
2,000,000
1,000,000
-
Source: NADL
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Dental Prosthetics Market by Segment
US 2010 – 2020 (U$$M)
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Dental Prosthetics Market Breakdown
Dental Prosthetics Market Breakdown, US 2013
Dental Prosthetics Market Breakdown, US 2020
Source: iData Research
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Development Crown & Bridge Market US
– All Materials*
*Units sold from dental laboratories to dentists
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Crown Market by Material Type
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Crown Material by Type
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Key Takeaways
• Projected growth of the crown market is CAGR* 3.5%
• 41 million crown units were produced in 2012, and it is projected
to exceed 55.4 million units by 2019
• In 2012 the average laboratory selling price for all crown types
was $156; all-ceramic = $139
• Growth in the all-ceramic market is expected to drive down the
average laboratory crown price to $105 by 2019
• Adoption of CAD/CAM technology and the growth of all ceramic
restorations is commoditizing the market
*CAGR = Compounded Annual Growth Rate
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Total Glass Ceramic Crown & Bridge Market,
US 2010-2020
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Total Zirconia Crown & Bridge Market
US 2010 - 2020
Monolithic Zirconia Crown Market
US 2010 - 2010
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Key Takeaways
• Market Driver: Adoption of CAD/CAM production
• Market Driver: Lower cost restorations
• 56.1% of the all ceramic crowns and bridges
manufactured are composed of zirconia
• Competitive pricing will continue to drive down the
cost of both layered and monolithic zirconia crowns
and bridges, but is projected to grow by CAGR 3% 7%
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Full Denture Market
US 2010 - 2020
Partial Denture Market
US 2010 - 2020
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Denture Units by Type
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Denture Market Facts
• The denture market is projected to grow at
CAGR of 4.9% through 2019
• More than 6.2 million denture units were
produced in 2012, and it is projected to reach
7.7 million by 2019
• ASP of a denture unit will remain relatively
flat through 2019 increasing only 1.7%
• Higher margin, less price sensitivity than
fixed restorations
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Key Takeaways
• Increased growth of partial dentures,
particularly the demand for flexible partials
• Tripled growth of population over the age of 65
• Demand for implant supported dentures
• Growth of corporate dental chains who now
own 7.5% of the denture market
• Digital denture services
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Key Takeaways
• 12% of full denture cases are now supported
by implants
• The implant-supported denture market is
expected to grow at a CAGR 6.7%
• 59.2% of US dental laboratories offer full
denture services
• 56.2% of US dental laboratories offer partial
denture services
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US Implant Market by Type
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Implant Market Facts
• The US market for dental implants is
estimated at $1 billion
• Unit sales for dental implants will increase at
a CAGR 9.6% by 2019
• US dental implant market is projected to
reach $5 billion by 2018
• 10% of US dentists place dental implants
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Glidewell Laboratories 10 years ago
• Our dental technicians were
primarily comprised of waxers,
metal finishers, opaquers and
master ceramists
• Restorations were made by
hand
• There was a strong focus on
artistry and craftsmanship
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Glidewell Laboratories today
• 90% of our cases are now
done via CAD/CAM
• This means we have fewer
master ceramists handstacking porcelain
• Instead we have a growing
number of Technicians,
Engineers and IT
Professionals trained in the
development and support
of CAD/CAM and digital
technologies
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The Future
• Greater Digitization in the Industry
• New Materials for CAD/CAM and 3D printing
• Modeless Dentistry
• Greater Outsourcing – Products & Services
• Greater focus on Productivity and Profitability
• More focus on education by labs
• Fewer Laboratories
• Lower Prices
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The Drivers of Rapid Changes in the
Dental Lab Industry
•Outsourcing
•Technology
•Innovation
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If You Really Want Success…
Embrace
C H A N G E
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Long and Winding Road
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The Road to Success
(Surviving vs. Thriving)
• Online Opportunities
– The internet, social media, online marketing
• Providing Education and training to your accounts –
– Be a learning source
• Technical Support and Communication
– Be consultative
• Extreme Customer Service
• Building Relationships
– You need to become the dentist’s trusted resource
• Differentiating your lab
– Products and Services
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The Road to Success
(Surviving vs. Thriving)
• Be Better Business People
– Know your numbers and understand them
• Increase your lab’s productivity and profitability
– Don’t confuse activity with productivity
• Don’t become complacent
– Success breeds complacency
• Find the right partners
– Manufacturers
– Distributors
– Outsourcing facilities
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The Keys to Success
Innovate
Integrate
Differentiate
Affiliate
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You can’t stop the wind…
but, you can reset your sails
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THE FUTURE IS BRIGHT!
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