Strong Positive Sentiment On Product Sales Volumes
13th Dec 16
Suppliers of dental products across Australia experienced a strong increase in sales volumes and selling prices over the first quarter of FY2016-17 according to sentiment expressed in the latest edition of the ADIA Dental Products Business Conditions Survey.
Key Issues For The Dental Industry —
Each quarter the Australian Dental Industry Association (ADIA) publishes the ADIA Dental Products Business Conditions Survey to provide timely insights into the current market for dental products. The results of this helpful market intelligence for the first quarter of FY2016-17 are now available.
The current edition can be downloaded without charge by employees of member businesses who log in to their ADIA Plus account. It can be accessed via the link below:
The ADIA Australian Dental Products Business Conditions Survey is produced using feedback from the businesses that supply products to dentists and allied oral healthcare professionals. It reviews current business conditions and future expectations on a quarterly basis.
Sales Volumes Index —
The Past Sales Volumes Index for the period July to September 2016 (inclusive) was 70.8 which indicates sentiment of strong upward pressure on sales volumes compared to the previous quarter.
Survey respondents advised that the situation across their clients (dental practices) was varied as some respondents said that the overall market seemed to be enjoying growth; however, some individual dental practices were not increasing sales. Survey respondents attributed this to the growth of new practices.
Selling Prices Index —
The Past Selling Prices Index for the period July to September 2016 (inclusive) was 69.7 which indicates sentiment of moderate to strong upward pressure on selling prices. It has increased significantly from the previous quarter that was depressed due to end of financial year sales.
Sentiment of an increase in selling prices was firmly attributed by survey respondents to two factors. The first factor is the adjustment that follows the previous quarters end of financial year discounting. The second factor stated by a large number of survey respondents is a regular scheduled price range that comes into effect with the commencement of a new financial year.
Input Costs Index —
The Past Input Costs Index (e.g. wholesale product purchase / manufacturing) for the period July - September 2016 (inclusive) was 66.9 indicating sentiment of moderate upward input cost pressures. This is amongst the lowest sentiment of upward pressure on costs across the dataset.
There was near uniformity amongst survey respondents was to why there is sentiment of upward pressure on input costs (e.g. wholesale product purchase / manufacturing), this being the last of the flow-on effect of the AUD$ over the previous two quarters. Whereas earlier in the year the value of the AUD$ fell compared to the currencies used to purchase products, typically US$, EUR€, JPY¥ and CNY¥, it remained relatively stable in more recent months. When the AUD$ falls it has the inverse impact of increasing costs for dental product importers.
Wage Costs Index —
The Past Wage Costs Index for the period July to September 2016 (inclusive was 55.9, indicating moderate upward pressure on wage costs. The drop on the first quarter of a new financial year confirms a pattern in sentiment changes that has been identified by survey respondents across the data series (see below).
The moderation of the Past Wage Cost Index reflects a pattern established in past surveys where increases moderate in the first quarter of a new financial year, survey respondents attribute this to the payment of end of financial year bonuses in the preceding quarter; however, the index remains positive due to commencement of salary increases in the new financial year.
The survey provides index figures for each of the above referenced categories plus additional measures of business costs. An index level of 50 indicating that there is an exact balance of sentiment between those who responded that the variable is growing and those who replied that the variable had declined. Thus, any level below 50 can generally be interpreted as meaning that the variable is falling, and conversely, a reading above 50 indicates the variable is increasing. This approach is used to determine the business conditions index for the previous quarter and also the business expectations for the coming quarter. The link below provides further information:
Production of the ADIA Dental Products Business Conditions Survey is just one of the many ways that ADIA works to create an environment in which member businesses can grow, create jobs and operate sustainably. The 2016-20 ADIA Strategic Plan places a specific focus on using ADIA’s experience in managing data and research projects will be used to develop a new understanding on how Australia can achieve a sustained increase in the demand for dental services, with the natural positive flow-on for ADIA member businesses.
Member engagement —
The ADIA-BAC Business Affairs Committee provides advice and guidance to ADIA staff in the preparation of industry and market research. Updates are provided at the quarterly series of ADIA State Branch Briefings.
Currency Of Information & Disclaimer —
This update was issued on 13 December 2016 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 information is available for your use in limited circumstances under a Creative Commons Attribution-NonCommercial-NoDerivatives LicenseAttribution-NonCommercial-NoDerivatives 4.0 International, with the exception of the ADIA logo, other images and where
4th Apr 19
The Therapeutic Goods Administration (TGA) has released its ‘Action Plan for Medical Devices’. The Action Plan is made from a three-part strategy than plans to further strengthen Australia’s regulatory requirements.
2nd Aug 19
Advertisers of medicines and medical devices sometimes promote on labels and in other advertising that their product is ‘natural’ or contains ‘natural’ ingredients.