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2nd Quarter 2011 U.S. Market Snapshot Series (MSS) Report on Dental Practice Activity - Stalling Economy, Stalling Business

Report #: 110533-100

Date: 07/09/2011

Fees: subscription-based (please inquire for quarterly subscription fees)

Ordering the report: please inquire at publications@afg-research.com

 

Overview:

The 2nd Quarter 2011 edition of OMNIDEN™ - AFG Research’s U.S. and international dental omnibus - included several questions designed to gather dentists’ opinions regarding the current state of the U.S. economy and the way their practice has been affected by the current economic environment. Results for these questions are made available as part of a new report titled: “2nd Quarter 2011 U.S. Market Snapshot Series (MSS) Report on Dental Practice Activity - Stalling Economy, Stalling Business”.

Specifically, AFG Research probed into what 250 U.S. dentists think about the current economic environment and the challenges faced by their practice (2,350 U.S. dentists since the 4th quarter 2008). As part of this study, AFG Research measured the changes experienced in the volume of twenty different dental procedures during the past six months, including direct restorations, implant procedures and many others.

According to the U.S. Department of Commerce, real GDP increased at an annual quarterly rate of 1.9% in the first quarter of 2011 (third estimate). In contrast to the growth of 3.1% recorded for the final quarter of 2010, the lower growth experienced over past quarter points to a significant loss of momentum across the wider American economy.

On the other hand, the national unemployment rate increased from 8.8% in March to 9.2% in June (equivalent to an increase of half a million unemployed Americans), while the number of non-agricultural jobs created in June – a mere 18,000 - was the lowest in the last 9 to 10 months.

Employment losses have disproportionally affected the government sector. With a loss of 39,000 jobs (14,000 in the federal government) in June, government employment has followed a downward trend for approximately 36 months. In addition, the number of long-term unemployed (those jobless for at least 27 weeks) remained unchanged over the month of May at 6.3 million, making up 44.4% of persons currently unemployed.

This virtual stall in employment generation should be closely examined by the overall dental industry and by those dental practices that directly or indirectly rely on employment-sponsored insurance plans for service payments.

Regarding inflation, the seasonally adjusted consumer price index for all items decreased by 0.2% in June, being a major factor for this decline the decrease in the gasoline index (which decreased by 6.8% in June). However, the index for all items less food and energy increased 0.3 percent for the second consecutive month. While the increasing trend for gas prices seems to erode, the increase in the prices of other consumables promise to continue eroding the purchasing power of many Americans.

Given the current economic atmosphere, the expectations of economic expansion post-recession been revised downward, as discussed by the major think tanks and opinion leaders:

  • “What's wrong with America's economy?”, The Economist, April 28, 2011

  • “Employment Report Is Cause for Concern”, Morgan Stanley, July 12, 2011

  • “Why Bank Bailouts Haven't Led to Jobs”, Harvard Business Review, July 11, 2011

  • “A Job Market Stuck in Neutral: Comments on the June 2011 Employment Situation”, Brookings, July 8, 2011

  • “No, We Can’t? Or Won’t?”, Paul Krugman, The New York Times, July 10, 2011

This quarter’s report continues to analyze current and expected production for 20 key dental procedures. It also focuses on two measures for tracking both the current state and the expected state of dental practice activities over the last 9 quarters: the “AFG Research Current Dental Practice Activity Index” and the “AFG Research Dental Practice Activity Expectations Index”. These indices, each of which is constructed from the re-scaled results of twelve questions (six questions on current practice conditions and six questions on expected practice conditions), provide a clear and concise view on the evolution of current business perceptions and expectations over the recessionary period.

The report will help dental manufacturers and distributors to: a) assess the current business environment of the industry, b) better understand the ways in which dentists across the U.S. are coping with changes in the economic environment, c) identify key opportunities for adapting their business to better address the needs of their customers d) track the changes in key dental business activities during both the recessionary and post-recessionary periods, and e) identify future trends and developments to better forecast business activity in 2011 and beyond.

Research Focus:

  • Influence of the U.S. economy on dental practices (current and historical levels by specialty and segment)
  • Current dental practice current activity index
  • Perceived conditions of the U.S. economy & practice activity (local economy, business conditions, revenues, profitability and technology investments, practice daily calendar, conversion rate for elective procedures)
  • Expected dental practice activity index
  • Expected conditions of the U.S. economy & practice activity (local economy, business conditions, revenues, profitability and technology investments, practice daily calendar, conversion rate for elective procedures)
  • Dental procedure volume analysis (current and historical levels by specialty and segment)
  • Dental procedure volume variations in past 6 months
  • Dental procedure volume variation expectations for next 6 months
  • Number of patients seen per week (current and historical levels)
  • Number of orthodontic cases & Invisalign patients (by age group of patients)
  • Dental impression methods (conventional versus digital impressions)
  • Practice expansion intentions (add new operatory, practice relocation, add new office)
  • Practice management priorities

Dental Procedures Covered:

Regional Market Covered: USA

Data Collection Date: June 2011

Report and Data Availability:

  • Online report (iCharts) available using name-based account
  • 400 key charts presented by key topics (current and expected practice activity metrics, procedure volume and variations)
  • 150 interactive charts with filtering capabilities (census region, dental practice size, etc.)
  • Summary of key findings and executive summary
  • Cross-tabulation of survey results by multiple classification questions (MS Excel)
  • Downloadable report (MS PowerPoint)

Information on Report License:

  • Site License: This license allows for use of the report by an unlimited number of people within the same enterprise location. Each of these people may use the report on any computer, and may print out the report, but may not share the report (or any information contained therein) with any person or persons outside of the enterprise location. Customers who infringe these license terms are liable for a Global Site license fee.

  • Global Site License: This license allows for use of the report by an unlimited number of people within the same enterprise worldwide. Each of these people may use the report on any computer, and may print out the report, but may not share the report (or any information contained therein) with any other person or persons outside of the enterprise. Please contact us for details.

DTA Members Discount:

Dental Trade Alliance (DTA)

 AFG Research is a member of the Dental Trade Alliance (DTA)

Any organization which is currently a member of the Dental Trade Alliance (DTA) is eligible to an additional discount on the report license fees. Please request your coupon code if applicable.

Additional Questions:

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