The U.S. Dental Industry has always been a stable industry. So why is there reason for concern?
Since 2008 the American dental market has been a solid industry to establish your career. The U.S. is where all international companies invested heavily to grow their brand. Ivoclar, Shofu, GC, Vita and more flourished here and employed thousands.
Why was America the beacon of international financial gains? There were two main reasons. First, the U.S. Dental industry never developed the manufacturing infrastructure to domestically supply our country. Second, the U.S. has always been a solid trading and financial partner. So, the U.S. was the “Land of Opportunity” for German, Korean and Japanese companies to park their “Hopes and Dreams” into.
The byproduct for dental professionals was an endless supply of jobs from international companies that paid well. True, there are outliers, such as Ultradent who is based in Utah, however most dental companies are based in their home countries. Being a career dental professional has been a solid career for many. Afterall, people have always needed their teeth.
Dental has always been the “Canary in a Coalmine” for the U.S. economy. Because people cancel their dental appointments when the economy begins to struggle. The dental world knows when the economy begins to slow down before the mainstream media. Unfortunately, dental quickly becomes disposal income for patients and is easily forgotten about.
This is why the last two years have been tough on the U.S. dental industry. The economic slump is felt first by dental practices, distributors and manufacturers. This happened in 2008 as well. Dental crawled into 2008 and it was dealt a near deathblow when the housing market collapsed.
This article is specifically for dental professionals who work for distributors, manufacturers and laboratories. If you work for a dental practice, you will feel the economic contraction, but your job is safer than other dental professionals. Patients will still visit your practice for preventative and endodontic care.
What about distributors, manufacturers and laboratories? The future is bleak, I’m sorry. Prior to the tariffs, many companies were operating on slim margins and trusted that the U.S. would endure any economic downturn because it always had. But it looks like the tariffs are here to stay.
The tariffs will kill the international supply pipeline our industry has historically relied on or will raise the cost. There is not enough American manufacturing infrastructure or historical innovation to make-up what is supplied from Germany to the U.S. Let alone what Italy, Spain, Japan, Korea and China supply us. It will take a decade of investment and innovation to replace our imports from these counties. Who will invest into the American infrastructure?
Maybe some international countries will invest into production capabilities in the U.S. But why would they invest into an economy that is slow with leadership that changes their policy based on emotions? That is on both sides of the political landscape. Business is based on the predictability of your partner. As of today, the U.S. seems problematic, and its financial vanity is off putting to many international investors. Will the government invest into building a stable infrastructure? Maybe, but do you have 10 years to wait for that to happen?
What does this mean for dental professionals who have relied on a stable and growing industry? I’m not clairvoyant, but higher prices for normal products combined with less cash flow being infused from the American public, equals tough times ahead. Layoffs, mergers and lower salaries are sure to come.
The worst-case scenario is that all small companies close and larger companies assume their market share. This will lead to everyone working for large corporations and dental will lose the “small town” charm it has always enjoyed. Unfortunately, this has already begun over the recent years. Dental survived the 2008 deathblow, however the tariff blow of 2025 is an American self-inflicted wound that the industry will forever be changed by. I don’t mean to be the bearer of bad news, I’m just trying to be the “Canary in a Coalmine”.