Bedding suppliers' outlook remains optimistic
By David Perry -- Furniture Today, March 10, 2008
Baltimore — Suppliers to the mattress industry are offering plenty of new products as the industry moves into what is expected to be a challenging year. And they offer something else: An optimistic outlook.
Their array of products will be on display for the International Sleep Products Assn. expo that is being held here this week at the Baltimore Convention Center. Almost 200 suppliers in the industry, from about two dozen countries, will have booths at the show, giving mattress producers a wide selection of mattress machines and materials to choose from.
The suppliers' optimism is not surprising, given the strong history of dollar and unit gains recorded in the mattress industry. But even in a year like 2008, when a number of bedding majors are predicting a decline in units and only a modest dollar gain, suppliers know they will be playing a key role as producers seek to eek out growth.
The costs of the raw materials that go into mattresses are going up, suppliers note. That forces them to continue to push for greater efficiencies in their operations, and it encourages them to experiment with new materials.
Some suppliers note, for example, that products offering alternatives to foam are in increasing demand, as foam prices rise.
But foam suppliers remain vital players. New memory foams and latex foams, in particular, are the focus of considerable interest.
Innerspring producers are also doing their part to add value and excitement to mattress lines. A number of new coils are now on the market.
The federal mattress flammability law, which took effect last July, has had a significant impact in the industry as a growing group of suppliers has stepped forward to provide fire-resistant materials.
It's not just the FR materials themselves that are important. Also significant are the programs and services that suppliers offer to help mattress producers remain in compliance with the standard.
Here's what leading suppliers, many of whom will be exhibiting at the ISPA expo, say they are doing this year to spark sales.
"As producers of foam, wire and non-woven products, we have recently seen dramatic increases in the cost of our raw materials. Additional increases are forecast for the remainder of the year. In order to mitigate these increases as much as possible, Hickory Springs is taking a two-pronged approach of cost reduction and product innovation. Significant cost reductions are being derived through the implementation of lean manufacturing techniques. And alternative lower cost materials are being explored. Simultaneously, we continue our primary focus on innovative product and supply solutions to help lower the cost and/or provide unique features and benefits for our customers. We look for the next several months to be relatively slow and then begin a slow recovery that trails the comeback of the housing market by three to six months."
Stuart Spiller, Vice president, bedding division, Hickory Springs
"Ergomotion emphasizes healthy lifestyles as our adjustable bed business continues to gain favor with consumers nationally and internationally. The adjustable foundation industry is growing rapidly. We recently completed several business investments that will benefit our customer base this year. Additionally, we can now ensure reliable on-time delivery.
"Ergomotion products fit in any frame and elevate to a full sitting position. Seven sizes, including split queen, are available. All are wall-friendly and feature removable height-adjustable legs. We will be showing our top-selling models at the ISPA show and will also present several new innovations."
Kelly Clenet, President, Ergomotion
"Freudenberg North America has boosted its commitment to helping small mattress manufacturers meet the federal FR standard. Working in conjunction with the Lilly Management Group, a consulting firm to the bedding industry, Freudenberg has underwritten a prototype development program that will assure the implementation and documentation of FR materials using the manufacturer's own mattress design to demonstrate compliance.
"The purpose of the program is to remove the burden from small manufacturers of setting up the entire program and having to go through the trial-and-error process that many of them are simply not equipped to do. We want to take the doubt out of the process for them, so that they can focus on doing what they do best, which is to make mattresses.
"This type of commitment is typical of how Freudenberg approches new markets. .. At Freudenberg, we take the approach that every manufacturer has a set of requirements that are unique to them. It's a little like structural DNA, and our job is to figure it out."
Ashutosh Karnik, Bedding market manager Freudenberg North America
"Our outlook for 2008 is optimistic despite a challenging economy. Although traffic is down, consumers who do buy mattresses are stepping up to higher-end bedding. Talalay latex is becoming a featured comfort layer in the top one to three inches of a lot of hybrid (innerspring plus specialty foam) mattresses, not just in all latex/foam beds. Its unique feel, health story and pressure relief allow retail sales associates to tell a simple, credible and real story on the retail floor."
Kevin Stein, Vice president marketing and R&D, Latex International
"With the cost trends with foam, we have several customers who are taking advantage of our foam replacement products. We expect those products to continue to be a bright spot for us in the coming months.
"'Sustainability,' 'natural' and 'green' are terms that are becoming more important to consumers. Adding some or all of these attributes to our barrier products will be a plus in 2008. The major challenge is that while most want these features, few will pay for the added value. Still, we are closely watching this market develop and expect that demand for those features will continue to grow. The key to improved sales in 2008 is to transform the FR barrier with improved physical performance characteristics and to add marketing value at retail. That will be the focus of Western Nonwovens in 2008, to provide more value for the buck."
Tom Taylor, Bedding business manager, Western Nonwovens
"To kick-start sales in 2008, we are targeting more and better training of sales associates. And we are offering targeted consumer advertising, focusing on health and hygiene messages."
James Bell, Principal, Protect-A-Bed
"We are emphasizing domestic production. Tietex is a completely vertical producer of fire-resistant mattress fabrics. We purchase raw yarn and fiber for our own greige production and finishing operations in Spartanburg, S.C. This complete domestic manufacturing allows us to control the strict quality requirements of the federal FR standard for every stage of manufacturing.
"We are also focusing on technical solutions. Our core competency is product innovation and development. Tietex has more than 30 years of technical expertise in a wide range of performance-driven markets. We concentrate on developing a solution that brings value to the mattress, and not just a fabric.
"Finally, we are adding value through technical consulting. Part of the solution we provide our customers is in technical consulting. We don't just produce the fabric. We help our customers with the challenge of FR compliance through training and assistance in the areas of quality control, record keeping, testing and continuous improvement."
Reed Cunningham, President, Tietex
"We at Carpenter Co. are very committed to better sleep and the bedding industry both inside the bed as well as top of the bed. We even have a dedicated Web site at www.sleepbetter.org.
"Our bedding lab at our Technical Center is working on trying to identify the properties of support and comfort materials that promote better quality sleep. In that regard, we are working with Dr. Michael Breus, who is a renowned sleep specialist. We think what we are learning will help us and our customers sell the message of better quality sleep and the resulting impact on the quality of life.
"In the product area, we have a full range of foams, fibers and latex geared to the bedding industry. This includes 19 different grades of visco elastic material. One of the most exciting areas for us now is the area of engineered foam. Engineered foam is the use of mechanically altered and laminated foams, fibers and latex to promote the ultimate in support and comfort based on pressure and temperature mapping. We have already introduced these to our customers both in bedding and top of the bed and we will be highlighting these at the ISPA Expo."
Ed Malechek, Executive vice president, Carpenter Co.
"Chili Technology, a leader in sleep temperature regulation, has a primary focus on the upper-end American consumer, those most insulated from economic downturns. Product innovation is the key to maintaining or growing sales for both retailers and manufacturers as floor traffic is decreasing, and competition is increasing. The top 2% of households are responsible for more than 50% of the discretionary spending in this country. In order to keep this demographic spending their dollars in the mattress industry it is critical that they are made aware of products that will allow them to live a more rested, healthier life. We are fortunate to be actively participating in the largest economy on earth. Out of the $3 trillion dollars spent this year in this country, we are confident that our market positioning will allow for significant growth. In order to get the word out on our mattress cooling and heating product, we are increasing spending on sales staff and internet marketing. These are both easily tracked to determine the return on investment."
Todd Youngblood, President, Chili Technology
"With its three production sites in Europe and the United States, Bodet & Horst is able to offer a variety of products to the international mattress industry. These include the entire range of knitted mattress cover materials and spacer fabrics. "We are focusing this year on the Eco Collection, featuring Green Cotton, Cottanic, Bamboo Tex, Hemp Tex, Soya Tex, Linen Tex and Ingeo. Especially interesting for the U.S. market will be our presentation of our FR mattress sleeves. Also, we offer zippers and other accessories, including climate belts for the completion of mattress covers."
Karsten Siewert, Vice president of sales, marketing, Bodet & Horst USA
"At GBS Enterprises, we offer a menu of items, from sheets to assorted accessorypackages of sheets, pillows, blankets, etc. to offer either as a 'take with' premium from the store or as a 'fulfillment' transaction where the retailer offers one of our linen packages as a 'free gift' on a mattress sale and gives the consumer a custom coupon to redeem with GBS via mail. The 'gift' products are prepared and shipped to the consumer within 48 hours of coupon receipt.
"In terms of mattress protection, we are still promoting two step-up 'velvet touch' mattress protectors. Our Silver Bullet program, launched in Las Vegas, was a resounding success. The CD program illustrates to the retailer the incremental profit formula and impact to net profit for offering second and third protectors at adiscount once you have confirmed the initial protector for the mattress purchase.
"While it seems this is something most would do anyway, we have found people need to be reminded of the inherent health benefits of using mattress protection on existing beds in their homes. The most effective means to multiple protection sales to one consumer is to stress the health benefits before the stain protection."
Dave Powers, President, GBS Enterprises
"Lilly Management Group's main objective in 2008 is to help U.S. mattress producers increase efficiencies in their factories. Our own experience is that virtually every mattress factory has inefficiencies in one or more of its operations, such as quilting and machine utilization, materials handling or floor operations.
"A new service we call Factory Solutions focuses on the reality that for many plants, their biggest hidden profits are right on their factory floors. This program will substantially increase efficiencies, reduce waste and raise productivity levels, creating new profit dollars that can be reinvested in driving business."
Susan Ebaugh, Partner, Lilly Management Group
"At Leggett & Platt, we are creating products that are relevant to the industry and to the end consumer so that there are compelling reasons to buy from our company. We are focusing our efforts on the VertiCoil introduction and communicating the benefits of making beds with one of the most technologically advanced sleep surfaces in the world.People are sleeping on old technology and we want them to benefit from some of the most up-to-date sleep technology in the industry. We are also helping our customers find ways to innovate and compete in a tough environment.We have to continue to define who our partners are and work with them to succeed in the market."
Mark Quinn, Group executive vice president, bedding, Leggett & Platt
"Although 2008 is expected to be a challenging year, we see this as the ideal opportunity to help retailers gain market share by delivering greater value to consumers.
When budgets are limited, consumers tend to be more selective in their bedding choices and are concerned with making the right purchase decision.By including our SleepTrust Guarantee, retailers can provide customers with added assurance their bedding investment is fully protected. The SleepTrust Guarantee is designed to resolve any mattress problem with the delivery of an outstanding customer service experience.
"To reinforce the value of exceptional customer satisfaction, we also know it's important to win the hearts and minds of retail sales associates.These are the frontline relationship builders.They are the essential connection between manufacturers, retailers and the buying consumer.In 2008, we're sponsoring a nationwide Better Bedding Sales Training Tour in cities across America featuring '90 minutes with Gerry Morris,' one of the industry's foremost bedding sales experts.With more than 20 years of field sales and coaching experience, Morris will be sharing his successful bedding sales techniques with retail sales associates.
"We believe a combination of improved consumer value, better selling approaches and the delivery of exceptional customer satisfaction will be the distinguishing marks of successful bedding retailers in 2008."
Brad Geddes, President, Magi Seal Corp.
"Value Ticking is offering an array of fabrics targeted for the federal FR standard. We have decorative circular knits with Integrated Barrier Systems, decorative printed fabrics, and the popular FR socks. All the FR products are domestically produced, which is such a plus for our customers. We have also introduced some natural products, such as organic cottons, and we are working on recycled fibers to incorporate them into fabrics for future introductions."
Gayden Truluck, Executive vice president, Value Ticking
"Wm. T. Burnett is very optimistic and expecting 2008 to be a good year for us in the bedding arena. Burnett is one of the industry's leading producers of inherent, durable fire barriers with the WhisperShield line of fire barriers.
"It appears that things are beginning to settle down with FR raw material supply and capacity. An adequate supply of FR raw material is available. Our suppliers have advised us that we should see some stability in raw material pricing during the last half of 2008 on FR components.
"The new western facility in Arizona is up and running extremely well. With the addition of industry veteran Steve Greenough as general manager in Arizona, I am very optimistic about our new plant and our western opportunities.
"Our East Coast facility is also running very well. With increasing foam costs, a renewed interest from bedding manufacturers in super-densified foam replacement fiber pads has once again emerged."
Tim McRee, National bedding manager, Wm. T. Burnett
