business journal for the mattress...

| 36 BedTimes June 2012 www.bedtimesmagazine.com

According to the numbers, 2011 was a good year for the

U.S. mattress industry, with unit shipments, dollar val-

ues and average unit selling prices registering increas-

es—a trend that began in 2010 and an indication that

economic recovery, albeit slow, is finally under way.

Numbers. They often bring into focus insights that words

sometimes don’t tell us. That’s why this month’s cover story is a

presentation of economic analyses, comprising more than a dozen

graphic displays of fresh industry data and

vivid signposts that highlight recent bench-

marks, performance and trends in mattress

manufacturing.

The chart below, for example, shows the in-

dustry’s dramatic periods of growth beginning

2001 and the downturn it suffered during

the Great Recession. On the following pages,

you’ll find quantitative snapshots of both

U.S. and international productivity, including

mattress imports and exports, as well as an

overview of the mattress market in seven lead-

ing industrialized countries. In addition, this

report includes supplemental information to

help put the numbers in perspective.

The majority of the material was drawn

from the International Sleep Products Asso-

ciation’s recently released 2011 Mattress Industry Report of Sales

and Trends, including both statistical data and analysis. In addi-

tion, there’s research from CSIL Milano, the Centre for Industrial

Studies, and analysis by furniture industry expert Jerry Epperson

of Mann, Armistead & Epperson Ltd.

—Compiled by Mary Best, BedTimes managing editor,

and designed by Stephanie Belcher, BedTimes art director

-12%

-9%

-6%

-3%

0%

3%

6%

9%

12%

15%

Annual growth of mattress and foundation shipments from year to year

20062005200420032002

0.7%

4.2%

2.4%

7.8%

3.2%

12.1%

6.2%

12%

-1.4%

4.7%

A VISUAL Guide to the BEDDING Biz

www.bedtimesmagazine.com June 2012 BedTimes 37 |

n U.S. mattress and foundation shipments

Dollar value Units shipped Average unit selling price (U.S. $ millions) (thousands) Shipments 2010 2011 % chg 2010 2011 % chg 2010 2011 % chg

Mattresses $4,596.7 $5,029.2 9.2% 19,257.3 19,452.6 1.0% $238.70 $258.54 8.3%

Innerspring $3,439.0 $3,529.9 2.6% 17,100.7 16,771.6 -1.9% $201.10 $210.47 4.7%

Noninnerspring $1,157.7 $1,499.3 29.6% 2,156.6 2,681.0 24.3% $536.80 $559.23 4.2%

Foundations $1,296.3 $1,319.8 1.8% 15,539.9 15,426.9 -0.7% $83.42 $85.55 2.6%

Total $5,893.0 $6,349.0 7.7% 34,797.2 34,879.5 0.2% $169.35 $182.03 7.5%

2007 2008 2009 2010 2011

n Unit shipments n Dollar value of shipments

-2.1%

1.4%

-11%

-9.1%-8.6%

-9.4%

6.2%

4.1%

0.2%

7.7%

Source: ISPA

Note: Includes contract and residential products. Excludes futons, crib mattresses and dual-purpose mattress inserts. Noninnerspring includes foam (all types), air, mattresses

incorporated in hybrid-type flotation and electric adjustable ensembles.

‘For all the well-documented reasons, mattress sales continue to

do well and we expect this to continue for the foreseeable future.

Innovation, exciting new products, health issues, respected

consumer brands and excellent press all help.’

—Jerry Epperson, managing director of Mann, Armistead & Epperson Ltd.


Share of mattress market Share of mattress market by value* by units**

Retail price points 2009 2010 2011 2009 2010 2011

Less than $500 20.1% 22.1% 19.1% 42.6% 46.2% 42.5%

$500-$1,000 36.1% 32.4% 33.6% 39.0% 33.9% 36.7%

$1,000-$2,000 25.4% 26.7% 29.2% 13.8% 14.7% 15.8%

$2,000 and higher 18.4% 18.8% 18.1% 4.6% 5.2% 5.0%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Percent of industry participating in survey 70.3% 71.2% 72.8% 62.9% 62% 63%

2006 2008 2010

Bedding specialty stores 41% 42% 43%

Furniture stores 39% 39% 38%

Department stores 6% 5% 5%

Direct-to-consumer 5% 5% 5%

Warehouse clubs 4% 5% 5%

Other 3% 3% 3%

Factory direct 2% 1% 1%

n Share of mattress market merchandised at queen retail price points

Source: ISPA * This represents a limited sample (dollars) of total industry shipments. Each category is based on the number of bedding sets manufactured to be merchandised at specific retail price points using queen sets as the price-point benchmark.** This represents a limited sample (units) of total industry shipments. Each category is based on the number of bedding sets manufactured to be merchandised at specific retail price points using queen sets as the price-point benchmark.

n Bedding sales by retail distribution channel

Source: Furniture/Today market researchThe direct-to-consumer channel includes sales through the Internet, television, home shopping networks and via telemarketing.The “other” channel includes sales through furniture rental stores, discount department stores, off-price retailers and military exchanges, among others.

‘Mattress sales are healthy with

year-over-year gains in both units

and average selling price. The increase in

selling price is being driven by unit-share

gains for the noninnerspring category.

Pricing is likely to remain healthy as

noninnerspring unit share expands,

helped by new product introductions.’

—Goldman Sachs, Forbes.com, April 18

n Percentage of innerspring mattresses shipped by size 2011

Queen38.3%

Twin24.9%

Full 18.3%

King10.6%

Odd sizes4.1%

Twin XL1.7%

CaliforniaKing1.3%

Full XL0.8%

The growth of

noninnerspring mattresses

continued in 2011 with

unit shipments jumping

24.3% and the dollar value

rising 29.6% over 2010.

Source: ISPA

ISPA statistics are a key member benefit

Members of the International Sleep Products Association report that one of the most valuable of their member benefits is access to an array of statistical reports. Here’s a look at what’s

available from ISPA:n Mattress Industry Report of Sales and Trends. Published each

spring, this annual report provides comprehensive current and 20-year historical data and analysis of the U.S. and international mattress industry in terms of unit shipments, sales revenues and average unit selling prices. The report puts numbers into context with commentary on issues facing the mattress industry and data on econometric factors that influence mattress sales. It’s free to members.

n Mattress Industry Forecast. Published at least twice a year, the forecast provides a tool that companies can use in preparing their busi-ness plans. The forecast projects mattress unit shipments and dollar values for the current year and succeeding two-year period. It’s free for members.

n Bedding Barometer. The Bedding Barometer presents monthly, quarterly and year-to-date U.S. sales activity for 18 participating mat-tress producers that represent about 45% of the market by unit ship-ments and 55% by the wholesale dollar value of those shipments. It’s free for members.

n Cost Survey. This annual report includes an industry summary of manufacturing and operating expense ratios, net sales and profit ratios, data presented by volume categories and geographic regions for easy comparison, and charts and graphics that show how company trends compare with industry averages over time. It’s free to ISPA member companies who participate in the survey and includes a personalized, confidential company report for comparison. An industry summary is available to nonparticipating members for $500.

n Wage Survey. The Wage Survey allows companies to see how they compare with the larger industry regarding average earnings, employee longevity, employment practices, fringe benefits, union contracts, out-sourcing and more. Participants in ISPA’s Wage Survey receive a confi-dential report customized for their company free of charge. Other ISPA members may purchase the nonconfidential industry data for $500.

n CSIL World Mattress Industry Report. In partnership with CSIL Milano, the Centre for Industrial Studies, ISPA oVers this report of detailed import and export trends for the largest mattress manufac-turing countries, along with international trade analysis for additional countries. The report is included in ISPA’s Mattress Industry Report of

Sales and Trends. For more information about these reports or about becoming an

ISPA member, contact Jane Oseth, ISPA manager of member services and statistics, at [email protected] or 703-683-8371.


n Percentage of U.S. mattress and foundation shipments by region 2010-2011

Dollar value of shipments Unit shipments

20.6%

North

Central

15.2%

Northeast

42%

South

22.2%

West

20.8%

North

Central

14.9%

Northeast

45.8%

South

18.5%

West

All regions of the

United States

enjoyed value

increases while unit

shipments registered

slight decreases

in some regions in

2011.Northeast

South

North Central

West

Source: ISPA


Export value ($1,000s) 2007 2008 2009 2010 2011

Canada $52,176 $67,234 $58,481 $65,385 $82,899% change 6.3% 28.9% -13.0% 11.8% 26.8%

Mexico $6,441 $7,779 $11,129 $13,545 $5,886% change 25.1% 20.8% 43.1% 21.7% -56.5%

Japan $13,410 $7,887 $6,734 $3,052 $3,042% change -18.0% -41.2% -14.6% -54.7% -0.3%

Australia $4,154 $4,940 $3,466 $2,141 $3,153% change -14.8% 18.9% -29.8% -38.2% -47.3%

Taiwan $4,119 $3,623 $3,358 $2,872 $2,970% change 27.3% -12.0% -7.3% -14.5% 3.4%

Germany $1,274 $1,338 $1,684 $1,190 $4,469% change -59.1% 5.0% 25.9% -29.3% 275.5%

Other countries $23,655 $27,502 $18,979 $26,035 $24,755% change -1.0% 16.3% -31.0% 37.2% -4.9%

Total exports $105,229 $120,303 $103,831 $114,220 $127,174% change -0.5% 14.3% -13.7% 10.0% 11.3%

n U.S. imports & exportsU.S. exports of mattresses and foundations by largest countries

n U.S. imports & exportsU.S. exports of mattresses and foundations by largest countries

Export units 2007 2008 2009 2010 2011

Canada 451,756 568,334 495,158 505,220 621,439% change 8.3% 25.8% -12.9% 2.0% 23.0%

Mexico 64,979 88,673 107,150 125,051 58,601% change -4.1% 36.5% 20.8% 16.7% -53.1%

Japan 62,261 47,394 38,177 29,948 33,048% change -21.3% -23.9% -19.4% -21.6% 10.4%

Australia 27,848 28,572 27,041 25,067 24,773% change 18.4% 2.6% -5.4% -7.3% -1.2%

Taiwan 18,799 18,930 21,242 18,577 15,504% change 49.5% 0.7% 12.2% -12.5% -16.5%

Germany 9,085 7,220 10,359 6,979 21,372% change -71.7% -20.5% 43.5% -32.6% 206.2%

Other countries 201,974 190,783 125,026 187,995 166,141% change -35.6% -5.5% -34.5% 50.4% -11.6%

Total exports 786,394 949,906 824,153 898,837 940,878% change -4.1% 20.8% -13.2% 9.1% 4.7%

Source: U.S. International Trade CommissionNote: Includes mattress supports (Harmonized Tariff Schedule 94041), mattresses of cellular rubber or plastics (HTS 940421) and mattresses of other than cellular rubber or plastics (HTS 940429).

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Import value ($1,000s) 2007 2008 2009 2010 2011

China $86,454 $74,908 $89,849 $137,741 $136,267

% change -3.9% -13.4% 19.9% 53.3% -1.1%

Mexico $49,372 $75,404 $57,637 $89,582 $90,322% change -2.0% 52.7% -23.6% 55.4% 0.8%

Canada $29,421 $25,393 $21,775 $26,852 $25,197% change -34.5% -13.7% -14.2% 23.3% -6.2%

Sweden $6,985 $6,469 $639 $2,897 $2,545% change 43.8% -7.4% -90.1% 353.4% -12.2%

Spain $1,827 $1,753 $456 $2,657 $2,193% change 55.1% -4.1% -74.0% 482.7% -17.5%

Dominican Republic $644 $1,196 $2,335 $1,953 $678% change -50.8% 85.7% 95.2% -16.4% -65.3%

Other countries $18,341 $13,972 $12,741 $12,030 $13,602% change 179.7% -23.8% -8.8% -5.6% -13.1%

Total imports $193,044 $199,095 $185,432 $273,712 $270,804% change -11.1% 3.1% -6.9% 47.6% -1.1%

U.S. imports & exportsU.S. imports of mattresses and foundations by largest countries

Innerspring and noninnerspring mattressesPercentage of value of production

United States

Brazil

Italy

Canada

Germany

France

United Kingdom

Spain

Mexico

NetherlandsBelgium

Sweden

Denmark

Switzerland

Portugal

Austria

Ireland

Sources: ISPA, Eurostat, CSIL MilanoNote: Map is not to scale. Innerspring Noninnerspring


U.S. imports & exportsU.S. imports of mattresses and foundations by largest countries

Import units 2007 2008 2009 2010 2011

China 1,614,897 1,026,407 1,280,310 1,641,312 1,552,730% change -26.2% -36.4 24.7% 28.2% -5.4%

Mexico 688,702 878,464 664,289 948,384 936,669% change 0.2% 27.6% -24.4% 42.8% -1.2%

Canada 371,889 175,005 263,798 274,915 286,989% change -6.3% -52.9% 50.7% 4.2% 4.4%

Sweden 22,177 25,796 9,379 7,305 7,058% change 151.8% 16.3% -63.6% -22.1% -3.4%

Spain 7,386 4,294 2,932 90,395 117,973% change -19.0% -41.9% -31.7% 2983.0% 30.5%

Dominican Republic 29,188 16,695 18,200 44,480 21,309% change 36.4% -42.8% 9.0% 144.4% -52.1%

Other countries 223,359 183,436 202,774 148,149 235,647% change 23.9% -17.9% 10.5% -26.9% 59.1%

Total imports 2,957,598 2,310,097 2,441,682 3,154,940 3,158,375% change -19.3 -21.9% 5.7% 29.2% 0.1%

Source: U.S. International Trade CommissionNote: Includes mattress supports (Harmonized Tariff Schedule 94041), mattresses of cellular rubber or plastics (HTS 940421), mattresses of cotton (HTS 9404291) and mattresses of other materials (HTS 940429909).

Russia

Malaysia

Finland Production Innerspring Non- (U.S.$ millions) innerspring

United States $4,701 75% 25%

Brazil $1,062 15% 85%

Italy $745 33% 67%

Canada $700 80% 20%

Germany $678 38% 62%

France $647 31% 69%

United Kingdom $532 86% 14%

Spain $472 58% 42%

Mexico $416 72% 28%

Russia $335 75% 25%

Belgium $267 36% 64%

Turkey $251 85% 15%

Netherlands $229 84% 16%

Sweden $194 36% 64%

Denmark $193 17% 83%

Switzerland $190 35% 65%

Portugal $108 80% 20%

Malaysia $102 85% 15%

Austria $97 5% 95%

Ireland $41 84% 16%

Finland $20 55% 45%

Total 21 countries $11,981 60% 40%

Total

60%

40%

Turkey


Production Exports Imports Consumption Population Total GNPCountry (U.S.$ millions) (U.S.$ millions) (U.S.$ millions) (U.S.$ millions) (millions) (U.S.$ billions)

Canada $700 $36 $105 $769 34 $1,423

France $647 $77 $215 $786 63 $2,755

Germany $678 $137 $284 $826 82 $3,485

Italy $745 $211 $78 $612 60 $2,112

Japan $254 $14 $167 $407 128 $4,830

United Kingdom $532 $42 $108 $599 62 $2,567

United States $4,701 $104 $261 $4,858 307 $14,503

Total $8,258 $621 $1,218 $8,855 735 $31,675

Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Consumer sentiment 77.3 82.8 92.3 92.2 93.6 103.2 104.6 105.8 107.6 89.2

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer sentiment 89.6 87.6 95.2 88.6 87.3 85.6 63.8 66.3 71.8 67.3

n Index of consumer sentiment

‘Americans aren’t cutting back a whole lot. Personal consumption as a share

of gross domestic product is floating along at the highest it has been since

at least 1948, at 71.1%. For comparison, it was way down at 62% as recently

as the early 1980s.’—Peter Coy, Bloomberg Businessweek, May 7

n Overview of the world mattress market in 7 major industrial countries

Sources: CSIL Milano, World BankNote: Consumption means apparent consumption at production prices, excluding markup.Mattresses data are for 2010. Apparent consumption = production - exports + imports.Population and GNP data for 2009 from the World Development Indicators 2010.

CSIL Milano forecasts $3.18

billion (U.S.) of mattresses will

be traded between 60 countries

in 2012.

n International trade of mattresses between 60 countriesCurrent U.S.$ millions

Source: CSIL Milano* Forecasts

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012*

$3,182

$2,919

$2,678

$2,444

$2,767

$2,437

$1,967

$1,700

$1,424

$1,140

$892$796

Source: University of Michigan (1966 =100)

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