The State of the Dental Lab Industry
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1 The State of the Dental Lab Industry Yesterday Today Tomorrow Norm Weinstock, Chairman May 8, 2015
2 ,000, ,000, ,000, ,000, ,000, ,000,000 Population +4% 0 10,000 20,000 30,000 40,000 50,000 60,000 Technicians -18% 40,000,000 45,000,000 50,000,000 55,000,000 60,000,000 C&B units +17% 2,300,000 2,400,000 2,500,000 2,600,000 2,700,000 2,800,000 2,900,000 Full Dentures +13% - 1,000,000 2,000,000 3,000,000 4,000,000 Partial Dentures +27% 0 5,000 10,000 15,000 Labs -38% Source: NADL
3 Dental Prosthetics Market by Segment US (U$$M) 3
4 Dental Prosthetics Market Breakdown Dental Prosthetics Market Breakdown, US 2013 Dental Prosthetics Market Breakdown, US 2020 Source: idata Research 4
5 Development Crown & Bridge Market US All Materials* *Units sold from dental laboratories to dentists 5
6 Crown Market by Material Type 6
7 Crown Material by Type 7
8 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 8
9 Total Glass Ceramic Crown & Bridge Market, US
10 Total Zirconia Crown & Bridge Market US Monolithic Zirconia Crown Market US
11 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% 11
12 Full Denture Market US Partial Denture Market US
13 Denture Units by Type 13
14 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 14
15 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 15
16 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 16
17 US Implant Market by Type 17
18 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 % of US dentists place dental implants 18
19 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 19
20 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 20
21 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 21
22 The Drivers of Rapid Changes in the Dental Lab Industry Outsourcing Technology Innovation 22
23 If You Really Want Success Embrace C H A N G E 23
24 Long and Winding Road 24
25 Online Opportunities The Road to Success (Surviving vs. Thriving) 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 25
26 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 26
27 The Keys to Success Innovate Integrate Differentiate Affiliate 27
28 You can t stop the wind but, you can reset your sails 28
29 THE FUTURE IS BRIGHT! 29
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