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As offshore competition reshapes the dental laboratory market, Australian labs are being forced to rethink where their real value lies. By Shane Conroy
Australia’s dental laboratory sector generated about AUD$359 million in revenue in 2023 and is projected to reach approximately AUD$577 million by 2030. Despite that growth, keeping the lion’s share of that revenue in Australia is becoming increasingly difficult for local labs.
That’s largely due to strong price competition from offshore labs that can manufacture crowns and other routine restorations at significantly lower cost than Australian labs.
“The loss of high-value work to overseas laboratories is very significant,” says Ashleigh Clark, CEO of the Australian Dental Technicians Association. “Some of our member labs have seen a revenue decrease of 40 to 50 per cent.”
Much of that pressure sits in posterior crown and bridge work, where restorations are less visible and cost often becomes the deciding factor for dentists.
Clark says increased competition from overseas laboratories has reduced margins in this category, meaning dentists need to potentially risk aesthetic quality or craftsmanship to achieve better margins.
As a result, work that once formed the steady backbone of many laboratories is now increasingly produced overseas. That shift is forcing local laboratories to rethink where their real value sits and where they can still command sustainable margins.
So where is the genuine low-hanging fruit for Australian laboratories today?
Opportunity #1
As routine posterior work becomes increasingly price driven, many laboratories are focusing more heavily on complex aesthetic anterior cases.
Anterior restorations place far greater emphasis on aesthetics than routine posterior work. Shade, translucency, tooth shape and surface character all influence the final result, and achieving a natural appearance requires careful judgement from the technician.
The technical skill required creates a natural barrier to low-cost offshore competition, and dentists often prefer to work closely with a trusted local laboratory rather than sending these cases offshore.
There may also be an opportunity for patients to visit the laboratory for shade matching to ensure the restoration blends naturally with surrounding teeth. That level of interaction gives Australian laboratories a practical advantage that offshore providers cannot easily replicate.
“Dentists want technicians they can lean on for technical expertise in high-end aesthetic cases,” Clark says. “That is something overseas laboratories simply cannot offer.”
Opportunity #2
Labs that view material selection as a strategic decision will be better placed to ease compressed profit margins due to overseas competition.
Anthony Minichilli, director, Bioart Dental, explains that material innovation must be driven not only by aesthetics and strength, but by economics, manufacturability, and workflow efficiency.
The loss of high-value work to overseas laboratories is very significant. Some of our member labs have seen a revenue decrease of 40 to 50 per cent.
Ashleigh Clark, CEO, Australian Dental Technicians Association
“Material innovation is no longer a peripheral consideration; it is central to how modern dental laboratories remain profitable and relevant,” he says.
“Emerging materials such as high-performance polymers, hybrid ceramics, and glass-filled resins are enabling laboratories to produce restorations faster, more consistently, and at lower cost.
“When implemented correctly, these materials do not compromise quality. They enhance reproducibility, reduce remakes, and improve overall system reliability.
“The opportunity lies in adaptation. Laboratories that embrace new materials and integrate them into digital workflows can reduce costs, improve turnaround times, and deliver consistent outcomes at scale.”
Opportunity #3
Collaboration between dentists and local technicians remains important across a range of more complex restorative work. Many such cases involve multiple stages, including try-ins, adjustments, and refinements that require ongoing communication between the dental practice and the laboratory.
Clark says this type of workflow strongly favours local laboratories. “Many dentists still want technicians they can collaborate with,” she explains. “They want to be able to pick up the phone, discuss the case, and work through any issues together.”
That level of collaboration is difficult to achieve with offshore providers. As a result, prosthetic work that requires ongoing refinement often remains with local laboratories where dentists can rely on direct communication and fast support.
Opportunity #4
Dentures and removable prosthetics continue to provide reliable income for many laboratories, but the economics have shifted. Laboratories that have adopted hybrid or fully digital workflows are now best placed to capture this work.
Digital production allows technicians to modify designs quickly, repeat try-ins, and remake appliances with far greater efficiency than traditional manufacturing methods. CAD/CAM production also reduces turnaround time, which is critical when dentists need to resolve fit issues or make rapid adjustments for patients.
“There is still reliable income in dentures,” explains Clark. “But we are seeing that labs set up with hybrid or fully digital workflow systems are the ones maintaining reliable income.”
A new model for labs?
Looking ahead, Clark believes successful laboratories will increasingly specialise in areas where technical expertise and collaboration remain essential. Premium aesthetic work will continue to favour local production, particularly when dentists and technicians need to work closely together on complex cases.
At the same time, digital manufacturing is reshaping the production model. CAD/CAM milling centres may handle much of the initial manufacturing, while local laboratories focus on finishing work and aesthetic refinement.
“Overseas laboratories will find it extremely difficult to match the precision, quality, and high-end aesthetics of Australian dental laboratories,” Clark concludes. “Cheaper imports risk poor fit, inconsistent shade, and compromise patient safety and satisfaction, while local labs will continue to deliver reliable, meticulously crafted restorations that meet the highest standards.”
