Selling Prices & Sales Volumes Sentiment Remains Positive
2nd May 16
The sustained growth in the dental industry continues with businesses reporting moderate to high upward pressure on selling prices and volumes. This is the finding of the latest reading of sentiment arising from the ADIA Australian Dental Products Business Conditions Survey covering the FY2015-16 third quarter.
Key Issues For The Dental Industry —
Results of the latest ADIA Dental Industry Business Conditions Survey indicate positive sentiment with respect to selling prices and sales volumes, providing evidence of sustained positive business conditions.
The ADIA Australian Dental Industry Dental Products Business Conditions Survey composite index was 67.0 indicating moderate to strong upward pressure on selling prices and volumes (the composite index being composed of these two measures which are listed in the report.
Survey respondents attributed the increase in prices to the need to pass-on wholesale prices rises that came about from the fall in value of the Australian dollar which increased the cost of imported products.
The increase in sales volumes was attributed by suppliers to the positive impact on sales of the ADX Sydney dental exhibition and also the introduction of new products for a number of businesses.
The ADIA Australian Dental Industry Dental Products Business Conditions Survey is the nation’s only longitudinal study of business sentiment within the dental industry and provides guidance on selling prices, sales volumes, input costs, administrative costs in addition to employee numbers and wages. The current report can be downloaded via tke link below:
Download / purchase the current edition —
FY2015-16 Third Quarter Report – Member $0.00 [PDF]
FY2015-16 Third Quarter Report – Nonmember $38.50 [PDF]
Manufacturers and suppliers of products are also suggesting that the upward pressures on administrative and wage costs are relatively stable with moderate upward pressure as reflected across most quarters in the data set. However, this is partly cyclical with the impacts of wage increases typically felt by business in the first quarter of a new financial year with little change over the January to March Period.
The ADIA Australian Dental Industry Dental Products Business Conditions Survey is a national survey that aggregates data provided by ADIA member businesses. It covers businesses of all sizes operating in every state / territory, and is Australia’s only specialised survey that targets the dental industry. Free copies of the survey results and an exclusive briefing are provided to each ADIA member company and reviewed in detail at the quarterly series of ADIA State Branch briefings and non-members can purchase a copy.
How the index figure is calculated —
The survey provides index figures for each of the above referenced categories, with 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. [Read More]
The ADIA Australian Dental Industry Dental Products Business Conditions Survey is now in its tenth edition and remains a highly valued service by ADIA members interested in sentiment on current business conditions experienced by manufacturers and suppliers of dental products in Australia. Along with the ADIA Bite Magazine Dental Practice Business Condition Survey and the Australian Dental Industry Intelligence Report they provide the guidance on business sentiment that allows member businesses to make the decisions to grow, create jobs and operate sustainably.
Currency of Information —
This update was issued on 3 May 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 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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