U.S. recession effects gnaw at dentists’ business

Dentists are finally feeling some pain from the recession.

Privately held dentist offices (NAICS code 6212) have seen sales so far this year decline about 3 percent after posting ongoing-though-shrinking gains in their top lines throughout the recent recession, Sageworks found in a financial statement analysis of the industry. Sales growth rates for dentists in 2008 and 2009 were 5 percent and 15 percent, respectively, but dipped to 1 percent growth last year before the current year’s decrease,according to the data as shown in the graph.

Profit growth, too, has waned, Sageworks found. Private dentist offices generated a 15 percent increase in net profits in 2009 but have seen profits shrink 3 percent so far this year, according to the analysis of financial statements from the private companies.

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