Straumann sets sites on the future with Vision 2020 plan

At its Capital Markets Day event last week in Amsterdam, Straumann unveiled a project its calling Vision 2020 which is a plan based on the companies projections about the future of dentistry and the markets for replacement, restorative and regenerative dentistry.

The Vision 2020 plan was built on top of existing industry data, new research and interviews conducted by Straumann, and the company created the plan as a way to anticipate market trends and properly position it’s business to thrive in the changing industry. In fact, if everything goes according to plan, Straumann expects to be twice its current size in both staffing and revenues by 2020.

A bit of that growth has already hit with the announcement last week that Straumann had acquired a 49% stake in Neodent, Brazil’s largest implant company. The deal would allow Straumann to assume 100% ownership of the currently privately-held company by picking up options over the next six years.

Achieving the rest of its planned growth will require the company to be correct in its read of the coming trends and capitalizing on those predictions. As the Neodent investment shows, the company is taking steps in this direction. Straumann is also trying to drive digitalization in the industry by partnering with other companies in the industry to create standardized software platforms and increasing its sales force in key markets including North America.

Forecasts

The company expects the industry to consolidate in many ways in the coming decade with single-dentist practices becoming less common and single-owner practices steadily decreasing throughout the rest of this decade. Other demographic trends Straumann is planning around include the increasing number of female dentists and the way those clinicians’ family needs will increase the trend of group dental practices.

However, the demographics will also be pushing those practices to more efficient operations out of necessity. According to Straumann’s research, the number of dental surgeons will not keep up with the increasing demand for implants and other restorative services. This means developing systems and technologies that increase clinical efficiency will be a big part of Straumann’s plan for future success.

Straumann’s report also expects consolidation of the dental lab industry, and in fact predicts an even faster rate on that side of the market. The plan bases this assumed contraction on the need for small labs to band together to leverage production technologies most efficiently and to the best competitive advantage.

In response to these business changes, technology will adapt with more widespread adoption of digital dentistry workflows that in turn will become more comprehensive. Straumann expects the overall cost of implant treatment to drop as new materials, techniques and technologies increase patient access. However, with more implants being placed and seeing lengthy service lives, the Vision 2020 plan sees a need for implant maintenance, particularly for the restorative components.

Plans

In planning for where the business wants to be in 2020, Straumann looked to wider economic trends and conditions. With implants traditionally showing market fluctuations in tune with the wider economy, Straumann anticipates growth from Latin America, Asia and other parts of the world while North America will hold it’s share of the global implant marketplace and Europe’s share will decrease.

Overall, with all factors that drive growth-acceptance, access and affordability-predicted to be stable or trending upwards during the next 8 years, Straumann is expecting to see the global market for implant, restorative and regenerative dental treatments to grow in the “high single digit range” by 2020.

But Straumann’s Vision 2020 plan is really a guide to outpace that predicted growth. One strategy the company plans to employ has already been put into action with the Neodent acquisition that allows Straumann to offer dual brands in emerging markets. In general, the plan calls for Straumann to take a leadership role in educating clinicians and promoting clinically efficient and effective systems