AUD Fall Puts Pressure On Dental Product Suppliers
27th Jan 16
The ADIA Dental Products Business Conditions Survey covering business sentiment for the second quarter of FY2015-16 has shown that businesses in the dental industry are optimistic for performance in the coming quarter, but the falling dollar is causing cost pressures that dampen optimism.
Key Issues For The Dental Industry —
Results of the latest ADIA Dental Products Business Conditions Survey have indicated that businesses in the dental industry, overall, had positive sentiment regarding the second quarter of the 2015-16 financial year, but a consistent, overarching concern remained for the performance of the Australian dollar against the US dollar. The full report on the survey can be downloaded via the link below:
ADIA Dental Products Business Conditions Survey (FY2015-16, Q2)
The Australian Dental Industry Association (ADIA) produces the ADIA Dental Products Business Conditions Survey using feedback from the businesses that supply products to dentists and allied oral healthcare professionals. Business sentiment on current conditions and future expectations is analysed on a quarterly basis across a number of key indicators.
Key findings for the survey of actual business conditions —
The dental product sales and services composite index which measures both selling prices and selling volumes rose from 58.9 to 72.3 in the second quarter for FY2015-16, indicating that business sentiment was very positive; and
The dental business costs composite index which measures both input (manufacturing / wholesale buying prices) costs and administrative overheads also rose to 73.3 from 71.0, indicating that businesses continue to experience strong upward pressure on input and administrative costs.
An indices reading of 50 indicates a balanced environment; an index reading greater than 50 indicates positive sentiment and an index reading less than 50 indicates negative sentiment.
Survey respondents had the option of providing commentary to support their survey answers and a recurring theme was that the falling value of the Australian dollar compared to key currencies was increasing the costs of purchasing products from overseas.
Respondents also indicated that strong sales volumes during the quarter were aided by customers buying to get through the holiday season demand and beat new year price rises. Business sentiment regarding expected sales volumes for the coming quarter (FY2015-16, Q3) was also positive with respondents anticipating success at the ADX16 Sydney dental exhibition in March.
The ADIA Dental Products Business Conditions Survey and its assessment of business sentiment is one of a number of resources produced by ADIA to provide member businesses with the information necessary to plan for the growth of their business, the creation of jobs and long-term sustainability.
Member Engagement —
ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. As the peak representative body for suppliers of quality dental products our services and advocacy agenda is by members in pursuit of a vibrant dental industry.
Currency of Information —
This update was issued on 2 February 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. [Read More]
PDF Downloadable File
5th Mar 18
The TGA is proposing to levy for the first time an application fee for placing Class 1 medical devices on the Australian Register of Therapeutic Goods (ARTG), a proposal that will significantly add business compliance costs.
2nd Aug 18
The Shadow Minister for Health, the Hon. Catherine King MP, will meet with the dental industry’s senior leadership when the annual Dental Industry Parliamentary Roundtable event convenes in Canberra in October 2018.