Industry Analysis & Industry Trends
Great progress has been made in the past 50 years in understanding and acting upon common oral diseases such as tooth decay and gum disease. More people now retain their natural teeth for their whole life, promoting demand for dental services. The Dental Practices industry is expected to generate revenue of £6.2 billion in 2013-14, up by 1.5% on the previous year, thanks to the modest economic recovery and stronger household spending.
Most firms in the industry are small, with average revenue per firm estimated at just £640,000 in 2013-14. However, the industry has started to consolidate, which is expected to bring up average revenue per firm to about £740,000 in 2018-19.
Industry revenue is estimated to decrease by at a compound annual rate of 0.5%... purchase to read more
Industry Report - Industry Investment Chapter
The industry combines relatively high labour inputs with low capital inputs, meaning that it has a low level of capital intensity. Its capital-to-labour ratio is 1:7.33, which means that, for every pound operators spend on capital, they spend £7.33 on wages.
Labour costs are high due to the personalised nature of services and the use of highly trained professionals to provide most of these services. The level of training required to become a dentist is significant and dentists can command high levels of remuneration.
There is limited use of fixed assets in this industry, although investment in fixed assets is increasing. In addition to dental chairs and the tools used in a basic dental exam, other tools are used for a number of purposes... purchase to read more