A Powerful Shift in Attitude is the Most Awesome Highlight of Chicago

Change happened. Our industry has definitely found its power! Recent technological developments for laboratories far outpace those for dentistry and the enthusiasm for what lies ahead is palpable. Considering the lousy state of the economy, could those of us in Chicago for Mid-Winter events have been any more "up" than we were--than we are?

This is a powerful shift in attitude from the laboratory community of yesteryear. That community--for the most part--did not exude the confidence in its ability to succeed that it exudes today. Today's typical dental laboratory recognizes the power it has to provide optimal patient care for the dentists it serves.

Being in Chicago this year was almost like being at a day spa. Attendees wore optimism and enthusiasm like a terrycloth robe as exhibitors pampered them with fantastic technologies--equipment, consumables and services--that offer greater prosthetic predictability and esthetics. The upbeat mood made this one of the best LAB DAY shows ever!

Part of the delight is that people came without high expectations. The media made sure we were properly browbeaten with a sense of foreboding about our country's economic condition. Yes, everyone was acutely aware that business for many laboratories is down, in some cases as much as 20-40%. And, sadly, there are reports of laboratory closures in Michigan and elsewhere, that impress us with how real and close to the surface troubles are. [The show mantra was "level is the new up."] But the prevailing attitude is that this is no time to wallow or give up. There's much to be done, help is available and now is the time to seize opportunity.

This is a time to innovate. Those who came to Chicago were very clear that they intend to push beyond what they see as a short-term glitch on the radar. They have a bigger vision of what lies ahead and remain steadfast in focusing on that future.

Here are some of the highlights (look for full coverage on lmtcommunications.com and from our April 2009 April issue):

Who's Doing What to Trump the Market

Diversifying. To generate additional income, some LAB DAY attendees said they're protecting their margins by diversifying, expanding their product mix and offering more value in this difficult market.

Pricing strategies. This is our community's oldest trick but now there's a twist that makes it seem not so, uh, tacky. Offshoring has created the opportunity for market segmentation and with it, pricing strategies. The great divide is between commodity and custom prosthetic offerings. At Vident's sold-out panel discussion, Billy Drake, owner of Charlotte, NC-based Precision Dental Laboratory, said restorations priced between $100-$250 are in "the kill zone" --the most vulnerable price point affected by offshore outsourcing competition.

"Relationships cannot be outsourced," said Mark Murphy, DDS, moderator of Vident's program. The importance of relationship building echoed heavily within the walls of many CAL-Lab, Jensen Education Day and LAB DAY presentations. The reason: prognosticators predict offshoring will grow from its current 20% to 40% of all laboratory casework in the next five years.

Implants, all-ceramics and removables continue to outpace growth in other categories. Some predict that all ceramics may actually overtake PFMs as the restoration of choice as early as 2011. Currently, 75% of the C&B market is metal based.

Predictions, predictions

Industry trend watchers including LMT are in agreement that the size of the lab market will indeed be shrinking; the lowest number being tossed around is 5,700 labs remaining in the U.S. by 2014. With the entrepreneurial spirit that defines the typical lab owner, I personally think that number is low.

Acquisitions will be on the rise. Part of that shrinkage is happening by way of consolidation. The venture capital market is looking at our community. This is excellent news for owners of larger laboratories nearing retirement age.

Biggest news on that front: Green Bay, Wisconsin-based Lord's Dental Studio was acquired by the GeoDigm Corporation, a provider of proprietary rapid-prototyping technology that will only be available to laboratories it acquires. Former acquisitions include four Minnesota-based laboratories: Excel, Webster, Premier and Apple Valley, which were folded into the GeoDigm family over the last four years. Lord's is GeoDigm's first acquisition funded by the large private equity investor, Welsh, Carson, Anderson & Stowe.

This LAB DAY was our 25th

Despite the economy, once again over 3,000 attendees came to stay ahead of the curve and on top of their game. We thank you for your participation, for your incredible resilience and for your willingness to embrace change. You guys are just amazing!