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Dental Products Sales Up But Prices Down Says Survey

Dental Products Sales Up But Prices Down Says Survey

6th Feb 18

Summary —

The Australian Dental Products Sector Business Conditions Survey that assesses sentiment on sales volumes and selling prices suggests that although there was moderate sentiment of an increase in sales volumes, the composite index was weakened by minor sentiment of a decline in selling prices.

Key Issues For The Dental Industry —

The Australian Dental Industry Association (ADIA) publishes the Australian Dental Products Sector Business Conditions Survey which provides a quarterly assessment of the business conditions amongst dental product manufacturers and suppliers. 

The dental products sales composite index combines sentiment of sales volumes and selling prices (separate figures are available in the full report) for the second quarter of FY2017-18.  With an index reading of 55.2, a historically low reading across the survey series, it suggests sentiment of weak to moderate growth compared to the previous quarter. It comes off an already low index level of sentiment and the figure was heavily influenced by a substantial fall in the Actual Selling Prices Index which suggested sentiment of a decline in nation-wide selling prices for the quarter.

This edition of the survey reports on the actual business conditions within dental product manufacturers and suppliers for the second quarter of FY2017-18 and notes the following sentiment:

Index:
Reading:

Dental Product Sales Composite Index
55.2 (Previous Quarter 55.8)

 

Measure:

This index provides an assessment of sentiments as to whether sales volumes and selling prices rose, fell or stayed the same compared to the previous quarter.

 

Assessment:

The underpinning sentiment is that there was a moderate increase in sales volumes; however the composite index was weakened by minor sentiment of a decline in selling prices.

The Australian Dental Products Sector Business Conditions Survey also provides sentiment of cost pressures across dental product manufacturers and suppliers.  The dental products suppliers composite cost index was 69.6 which suggests that business costs are increasing.

Index:
Reading:

Dental Product Suppliers Cost Composite Index
69.6 (Previous Quarter 53.5)

 

Measure:

This index provides an assessment of sentiments as to whether product manufacturing / purchase and administrative costs rose, fell or stayed the same compared to the previous quarter.

 

Assessment:

There was strong sentiment that costs across the board increased.

Survey respondents that provided commentary as to current business conditions suggests that in a somewhat subdued market selling prices were relatively stable as businesses discounted (over and above end-of-year sales) to retain market share.

This data is designed to provide guidance on the sentiment within the dental industry and provides a useful way for dental product manufacturers and suppliers to assess whether the business conditions that they are experiencing are broadly in-line with sector-wide sentiment.

Dental Products Sector Sentiment Survey Information —


Australian Dental Products Sector Business Conditions Survey - Download current edition *
Australian Dental Products Sector Business Conditions Survey - Survey methodology


The data collected to provide this report was collected via an online survey over two weeks from 15 January 2018 that was completed by approximately one in four member businesses.  The Australian Dental Products Sector Business Conditions Survey is just one of many ADIA’s publications that analyse the market for dental products.  For information on other market analysis visit the ADIA website.

Member engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results.  With respect to the market research published by ADIA, representatives of member businesses serving on the ADIA-MSPC Market Statistics Projects Committee provide advice and guidance to the national office team responsible for managing the research projects.

Currency & Disclaimer —

This update was issued on 6 February 2018 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here. 


This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated. 

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