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today IDS 2009 Show Preview

Prospects for the 33rd Inter- national Dental Show next month look promising, repre- sentatives of the German den- tal industry have agreed. At a recent press conference in Cologne, they also rejected fears of economic cutbacks due to the ongoing financial crisis. According to Dr Martin Rickert, Chairman of the Association of German Dental Manufacturers (VDDIe.V.),thereisstillasteady demand for medical and dental services. Today Editor-in-Chief Daniel Zimmermann spoke with Dr Rickert about the cur- rentstateoftheindustryandhis expectations for IDS Cologne 2009. Daniel Zimmermann: Dr Rickert,theeconomicvalua- tion of the German dental market in 2008 was fairly positive. Has this changed with the current financial crisis? Dr Rickert: Not really. As youcorrectlypointout,itispre- dominantly a financial crisis. Theindustry’soutlookfor2008 wasgoodandcurrentlythereis a trend towards a stable return which does not fulfil all our expectations but still promises to deliver satisfactory profits. There are certainly fluctua- tions in various market seg- ments and world markets that stem from different influences and are not attributable to a single cause. There have been initial reports on redundancies in the United States. Should we be preparing for cutbacks or restructuring measures in Germany as well? The US health sector differs from that in Germany and in most European countries and, therefore, many private in- vestors have been affected by the financial crisis. Mass re- dundancies in key sectors mean that many people can no longer contribute towards company health insurance schemes in the US. This will definitely not be the case in Germany because the statu- tory health insurance provider and private health insurance companies are prepared to cover the healthcare costs for their clients in the future. Even if we are in for job losses in var- ious economic sectors, there arenotlikelytobeanynegative effects on the German health- care market. What positive effects will IDS have on the industry? The 33rd IDS will again ex- hibit a comprehensive range of modern dental products and technologies. Visitors will be able to see and experience an abundance of new product and service innovations. Techno- logical developments in the medical field and our indus- try’s investment in research and development continually produce new and improved system solutions for dental practices and laboratories, which are of great financial in- terest to dentist and technician alike. IDS has always been a driv- ing force behind the dental market and will remain in this role in the future. I expect our partners—dentists, dental tech- nicians, dental hygienists, and prophylaxis assistants—to be able to convince patients that investing in their health is the best way to secure their own well-being and quality of life. Investments in health are in- vestments in one’s own future. I am confident that despite the current economic fluctuations patients will not neglect their oral health or decide not to makeuseofnecessarycareand treatment.Fallingpricesforen- ergy, the commuter tax relief refund, and private savings as- sets of around €10 trillion in Germany ensure the liquidity of a large portion of the popula- tion. Moreover, patients’ de- mands for health-related serv- ices are mostly governed by acute health problems and the desireforareturntohealthand recuperating quality of life. Dental implants and auto- mated fabrication of dental restorations are currently the fastest growing sectors in dentistry. Is this boom re- flected in the products and services that are going to be presented at IDS? Implant-borne restorations are in fact one of the fastest growing sectors, with more than 700,000 dental implants placed in Germany last year and an annual growth-rate of around 10 to 15 per cent. These high-quality restorations will continue to be in demand by many patients in the future be- cause they are one of the most progressive and long-lasting restorationsavailable.Inciden- tally, the growth in dental im- plants in Germany can largely be attributed to the fact that the statutory health insurance scheme has subsidised this treatment since the introduc- tion of a fixed coverage system in 2005. IDS will exhibit the en- tirerangeofmodernimplantol- ogy systems, presenting both innovations and developments in tried-and-tested systems. Whatothersectorsdoyou view as having potential for growth? Apart from implantology, I see the most potential in the all-porcelain sector, in which around 25 million restorations worldwide were fabricated using CAD/CAM technology. Modernlaserscannersareable to read more than 100,000 re- flecting points a second, and image-capturing has become quicker and more precise. Modern high-performance ma- terials provide the best possi- ble stability for a wide range of indications and are able to guarantee biocompatibility at the same time. Thelatestdigitalfabrication technology using laser metal sintering of, mostly precious metal-free, alloy powders can now also be considered for prosthetic restorations. These dentures stand out because of their incredibly precise fit and durability. German dental industry export activities again in- creased by approximately two per cent in 2007, which comprises 55 per cent of the total turnover. Is the domes- tic market losing its value? There is no doubt that Ger- many remains our key market. It is here that the German den- tal industry researches and de- velops new products and serv- ices in collaboration with den- tal institutions at universities, technicalcolleges,andtraining schools (Meisterschulen). We need this market in order to in- troduce products and services in conjunction with healthcare providers and users because, with the high standard of healthcare, dentistry and den- tal technology in our country, these products and services are considered models for den- tal practices and laboratories worldwide. The shift of sales is a result of an expansion of our market position overseas dispropor- tionate to growth in the domes- tic market. It is important to guarantee dentistsanddentaltechnicians in the German market accept- able remuneration for their services.Thisistheonlywayto ensure that young people find their way into the health serv- ice, to prevent professional mi- gration, and to ensure patients gain access to the latest devel- opments in general dentistry and dental technology. German patients have to carry more medical expen- ses due to the introduction of the national health fund. Is this having an effect on dentistry as well? I expect not only an added burdenfortheinsured,butalso an increase in bureaucracy that we will all have to toler- ate. Calculations by a council of experts for the national health fund predict a shortfall of €440 million in 2009 alone! I think notable negative effects are to be expected due to the revamped dental practi- tioners’ fee schedule, which is the new basis for private dental billing in 2009. In their calculations, the Association of German Dentists has con- cluded that large cutbacks in salaries could be the outcome of these regulations. If one considers that a significant portion of the annual turnover in many practices already comes from patients who pay out of their own pockets and are, therefore, essential for practices’survival,onecannot understand why the dental profession should be content with a slight increase in re- funding of only 0.46 per cent after 21 years. In which markets has the German dental industry gained shares in 2008, and which markets do you re- gard as difficult to gain ac- cess to? The results of our latest member questionnaire under- line the fact that export figures in East European markets, es- peciallyRussia,andAsianmar- kets have shown a positive trend. Furthermore, the eco- nomic outlook for Latin Amer- ica has improved remarkably in the last few months; how- ever, it must be noted that growth development in this market is still at a very low level.Aslightweakeninginthe outlook for the North Ameri- can market has been reported. Regardless of this, the number of members who predict an in- crease in business prospects for the first half of 2009 is higher than those who predict adeclineinbusinessprospects. Onaverage,WesternEurope presents itself as a very stable market environment and re- mains one of the most impor- tant sales regions for our mem- bers in terms of turnover. One- fifth of our members expect an improvement in their prof- its within the first half of 2009 compared with the same pe- riod last year. An increasing number of companies from emerging markets, such as India and China, are beginning to gain market shares. How do you size up the competition? It is important to remember that IDS is also a global market- place. These countries do not necessarily come to Germany to attend IDS, in order to com- pete in these highly developed markets. For most companies, markets in developing coun- tries are of primary impor- tance, as the world’s largest dental marketplace is a meet- ing point for suppliers from de- veloping countries and their consumers from other devel- oping countries. However, this doesn’t mean they don’t have anythingtoofferEuropeancon- sumers. The German dental industry has enjoyed an international reputationasoneofthemostin- novative dental industries. Our exceptionally high standard of quality, service-friendly prod- ucts, and high level of innova- tion, as well as distinct cus- tomer orientation with a high quality of service, make our products globally competitive. We confidently meet the chal- lenge of all competition in any market worldwide. During the last two years you have travelled abroad to promote IDS in other re- gions. Can you tell us more about perceptions of the show in different parts of the world? IDS is THE international meeting for the dental sector. For years, it has been an es- tablished communication and marketing platform for the in- ternational dental communi- ty. This recognition has not changed very much, as was ev- ident during our several inter- national press conferences last year held in collaboration with Koelnmesse subsidiaries in Japan, China, Russia, and the UnitedStates.Participantscon- sistently displayed much in- terest in and support for IDS. We were also given credit for the high quality of accommo- dation, careful organisation, and the show’s international character. Only at IDS is such a com- prehensivedisplayoftheinter- national dentistry market pre- sented—thecompletespectrum of dentistry and dental tech- nology is available to be seen and experienced. All products and services that make the work of dentists easier, help them work economically, and provide their patients with the state-of-the-art in dental tech- nology are available at the show. Unlike other internation- al meetings, IDS seems to growinpopularityeachyear. In your opinion, what are the main factors contribut- ing towards this growth? IDS has an appealing and powerful concept that was de- veloped in cooperation with our partner Koelnmesse. In particular, the sheer amount of state-of-the-art innovations makes IDS the most compre- hensive dental exhibition and one of the liveliest and most significantmarketplacesinthe dental world. It is important that we plan this growth carefully to keep up with market demands. We donotwanttheshowtoexpand too rapidly and possibly out- grow its market. Wealreadyhaveahighlevel of international participation atIDSfrombothexhibitorsand visitors. The show is cosmo- politan, the standard of ac- commodationattheshowisex- ceptionally high, and the effi- cient organisation behind the show makes a visit to the show easy. Finally,thecityofCologneis ideallysituatedintermsofpub- lic transport within Germany, as well as to and from Europe and the World. Thank you very much for the interview! AD “IDS has always been a driving force behind the dental market” Interview with Dr Martin Rickert,Chairman of theAssociation of German Dental Manufacturers (VDDI e.V.) Dr Martin Rickert (left) speaks at the European press conference in December 2008. (DTI, Daniel Zimmermann) opinion04 Show Preview IDS Cologne 2009