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BedTimes |

The Business Journal for the Sleep Products Industry January 2012

The Millennials:

Meet your



customers ISPA EXPO 2012 planning guide How you can be a winner in the face of losses

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The PowerStack is now available in a High Profile unit to meet the demands of todays taller boxspring configurations. Hickory Springs patented PowerStack zero deflection box spring is engineered for extreme stability. A series of cup-shaped internal supports are welded to the box springs’ border wire and cross-support grid, then secured at the base on two axes. This unique construction prevents head-to-foot and side-to-side sway and reduces pocketing as well. Assembly is quick and simple — just staple it in place and move it on down the line.



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BedTimes Editor in Chief Julie A. Palm 571-482-5442 Associate Editor Barbara Nelles 336-303-1114 Managing Editor Mary Best 571-482-5432 Ar t Director Stephanie Belcher 336-201-7475 Vice President of Adver tising Sales Kerri Bellias 336-945-0265 Ad Production & Circulation Manager Debbie Robbins 571-482-5443 Copy Editor Betsi Robinson Volume 140, Number 1 BedTimes (ISSN 0893-5556; Permit 047-620) is published monthly by the International Sleep Products Association. Periodicals postage paid in Alexandria, Va., and additional entry offices. Administrative and ISPA offices 501 Wythe St. Alexandria, VA 22314-1917 Phone 703-683-8371 Fax 703-683-4503 Postmaster: Send address changes to BedTimes 501 Wythe St. Alexandria, VA 22314-1917 Contents © 2012 by the International Sleep Products Association. Reprint permission obtainable through BedTimes.

Contributors |

Mark E. Battersby

Mark E. Battersby is a freelance writer who has specialized in taxes and finance for 25 years. Working from offices in the suburban Philadelphia community of Ardmore, Battersby currently writes for publications in a variety of fields, syndicates two weekly columns that appear in more than 65 publications and has written four books. He can be reached at 610-789-2480 or | Elaine


Elaine Dumler is an author, speaker and separations expert who helps military families transition through all phases of deployment. Using techniques and strategies she taught military families, Dumler helps businesses improve morale, profits and productivity. Her books, I’m Already Home…Again and The Road Home, provide resources and connection strategies for maintaining life balance. She wrote about the skills that military veterans bring to civilian employers in the April 2011 BedTimes. For more information on her books and trainings, call 303-430-0592 or visit | Patricia

Comroe Frank

Patricia Comroe Frank spent much of her career in advertising, first as a copywriter and then as chief executive officer of a California-based marketing communications firm. Clients included home furnishings and building industry companies. Now living in North Carolina, Frank specializes in reporting on niche markets, lifestyle trends and changing demographics. Her byline has appeared in numerous business and consumer publications. Frank wrote about the new frugality of consumers in the March 2011 BedTimes. Her debut novel, Falling Through Time, recently was published as an Amazon e-book. She can be reached at or 252-728-1668. | G  lenn Gutek Glenn Gutek is a speaker and chief executive officer of Awake Consulting & Coaching, a firm that helps small businesses and organizations improve their leadership and business development through training and coaching. He is the

author of Wide-Awake Leadership, which teaches leaders how to overcome mediocrity though effective leadership. For more information on his speaking and consulting, visit or contact Gutek at or 407-901-4357. | Phillip

M. Perry

Phillip M. Perry is an awardwinning writer who has published widely in the fields of business management, workplace psychology and employment law, and is syndicated in scores of magazines nationwide. He is past editor of a leading communications magazine and served as business editor of a major industry newspaper. Perry wrote about the economic forecast for 2012 in the December 2011 BedTimes. He can be reached at 212-274-8694 or | D  orothy


Dorothy Whitcomb is a freelance journalist and editor whose work has appeared in a wide range of business and general interest publications. Her primary focus for 25 years has been the home furnishings industry. She wrote a profile of industry supplier Enriquez Materials & Quilting Inc. in the December 2011 BedTimes. She can be reached at or 410-820-0456.


Coming up

Deadlines for ISPA EXPO show issue If you are exhibiting at ISPA EXPO 2012 and have news about new products and services you’ll be introducing at the show, submit information for the March issue of BedTimes, which will have bonus distribution on the show floor in Indianapolis. The deadline for EXPO news is Wednesday, Feb. 1. Submit releases and photos to Correction A report on the High Point Market in the December issue of BedTimes contained a typo in the name of sleep products manufacturer Glideaway. We regret the error.

January 2012 BedTimes


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Inside ■


9 | Brief Sheet

■ U.S. mattress sales post gains ■ What do employees and employers want from

each other? ■ New marketing methods attract consumers

& more…

15 | Profile ■



Dutch Craft Mattress Co. President Eli Schmucker draws on his Amish values—and entrepreneurial spirit—to manufacture a full line of mattresses in Tennessee.

19 | Skills

| 28 Coming to a store near you They are huge—some 80 million people born at the end of the last century—and they’re the most diverse generation in history. The Millennials have their own ways of shopping and buying. How can you adapt your marketing strategy to fit the values and lifestyles of this group?

| 40 When loss turns to gain

Building resilience A technique known as BAND can strengthen your problem-solving techniques and improve the decisions you make.

23 | Management

What’s your style? Not all types of management are equal. What works best often depends on the situation. Here are six styles you can use to direct and motivate your employees.

40 47 | Leadership

‘We regret to inform you’ As Sophocles wrote, “No one loves the messenger who brings bad news,” but there are good and bad ways to deliver it. Consider these straight approaches to sharing unpleasant information.

Special tax laws offer welcome relief for companies that have experienced disaster and misfortune.

65 | News

■ Culp’s sales rise in second quarter ■ Englander teams with Symbol Mattress in India ■ Comfort Solutions signs Restwell & more…

| 53 ISPA EXPO 2012 All the information you need to map out your trip to the largest machinery and components show for the mattress industry. This year’s event is March 14-17 in Indianapolis.

77 | Newsmakers

■ Ergomotion names new senior account manager ■ Info Retail adds two executives & more…



07 | Note 81 | Calendar

78 | ISPA

■ ISPA promotes product stewardship ■ Seats still available for product safety program

& more…

82 | Advertisers 84 | Classifieds


87 | On Sleep

■ NIH launches new sleep research initiative ■ Scientists discover the gene that regulates how long

we sleep & more… January 2012 BedTimes





Bois Le Roux is now FSC® certified, as part of our effort to remain a leader in business development and contribute to the sustainable management of the environment. Our FSC certified wood is another added value to our bedframe lumber and our company. • Rigid, lightweight, resistant products providing better support that extends mattress life. • Deal closely with the mill. • Our production is 100% bedframe lumber. • Two separate production lines for more versatility and greater productivity. • Fast delivery, thanks to our warehouses in the US and a loyal carrier working with us for over 10 years.

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It’s 2012: That means ISPA EXPO time again

I Mark your calendars The show returns to the Indiana Convention Center in Indianapolis, where it also was held in 2004.

Julie A. Palm Editor in chief

started as editor of BedTimes in mid-February 2004—just one month before ISPA EXPO in Indianapolis. I’d attended plenty of furniture and home accessories shows earlier in my career, but I’d never been to an event dedicated to all of the machinery, equipment, components, supplies and services needed to manufacture mattresses. I asked a co-worker what I could expect to see. “Hog rings,” she told me. Hog rings? I wondered what I had gotten myself into. During that first ISPA EXPO, I did indeed find someone to show me what a hog ring is. I also learned a good bit about serger-flangers, shoddy, tape-edge and all sorts of other oddly named items critical to mattress production. The International Sleep Products Association holds its event—the largest trade show for the manufacturing of mattresses and other sleep products—every two years in different U.S. cities. The coming show will be March 14-17, again at the Indiana Convention Center in Indianapolis. At ISPA offices, you can tell when another EXPO is coming around: Everyone gets a lot busier, planning educational sessions, booking exhibitors onto the show floor, preparing marketing materials and EXPO-dedicated websites, helping exhibitors and attendees plan their visits. The list goes on and on and on. At BedTimes, we work on three special show issues. This first one contains a special section to help you plan your EXPO experience and trip to Indianapolis. (See section starting on Page 53.) In March, BedTimes will be packed with more EXPO information, including an exhibitor directory and maps showing where you can find everything you’re looking for on the show floor. As always, the March issue will have bonus distribution at EXPO itself. Look for it at the convention center and in lo-

cal hotels. In May, we wrap things up with an overview of trends and new products that the BedTimes’ team has seen while covering the show. If you’re exhibiting at ISPA EXPO 2012 and have news about products and services you’ll be introducing there, you should plan to submit information to be included in the March BedTimes. The deadline for EXPO news is Wednesday, Feb. 1. Send news releases and photos to me at Questions? Call 571-482-5442. If you haven’t registered to attend EXPO, now is the time. If you register by Wednesday, Feb. 22, you’ll receive special advance rates. Check to find easy-to-use registration forms, plus links to hotel registration and information about transportation and Indianapolis. I’m looking forward to this year’s show. And not only because I plan to send our newest team member, Managing Editor Mary Best, on her own search for hog rings. ■ January 2012 BedTimes





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Brief Sheet

Making your sales pitch count


n these days of message overload, customers want concise, relevant and useful information to help simplify purchasing decisions, says Jeff Mowatt, a syndicated columnist and author of Becoming a Service Icon in 90 Minutes a Month and Influence with Ease. Mowatt suggests following five steps to help customers compare your products and services with the competition. Without naming names, explain Tell the truth and don’t what other providers in your line of exaggerate. business supply. Highlight the ways your product or Briefly point out the downside of service is different. their approach. Again, tell the truth and don’t exaggerate.


New marketing methods can lead customers your way for less

3 4 5



ith consumers receiving thousands of electronic and traditional commercial messages daily, they are no longer relying on billboards and television commercials—or “outbound” marketing—as a way of learning about products and brands. Instead of casting their nets far and wide, marketers today are turning to “inbound” marketing, a trend fueled by consumers who have become empowered by the Internet and social media to discover more effective alternatives to finding, researching and buying products. According to Voltier Digital, a content marketing agency headquartered in Delray, Fla., this new marketing strategy relies on consumers finding an advertiser rather than the other way around. A bonus: It costs less than traditional marketing, which many consumers no longer pay attention to anyway. According to Voltier Digital: ■ 44% of direct mail is never opened. ■ 86% of people skip through television commercials. ■ 84% of 25- to 34-year-olds have clicked out of a website because of an “irrelevant or intrusive ad.”


leader must identify himself with the group, must back up the group, even at the risk of displeasing superiors. He must believe that the group wants from him a sense of approval. If this feeling prevails, production, discipline and morale will be high, and in return, you can demand the cooperation to promote the goals of the company.”

U.S. mattress sales continue to rise T

he wholesale dollar value of mattresses and foundations sold in the United States increased 12.5% in October when compared with the same month in 2010, according to the Bedding Barometer, a monthly report of U.S. mattress sales published by the International Sleep Products Association. Unit shipments also rose, up 2.9% in October. The average unit selling price climbed 9.3% higher than October 2010. Looking at January to October 2011, year-to-date units and dollars remained in positive territory, increasing 1.5% and 8.7%, respectively, over 2010. AUSP was up 7.1%. 

—Vince Lombardi January 2012 BedTimes


Brief Sheet ■ BEGINNINGS


Looking for a few good employers…

very man should

be born again on the first day of January. Start with a fresh page.” —Henry Ward Beecher


ife is one grand,

sweet song, so start the music.” —Ronald Reagan


eginnings are

always messy.” —John Galsworthy


rom the end spring

new beginnings.” —Pliny the Elder


very exit is an entry

somewhere else.”


mployees want to be recognized and appreciated by employers for their work and apparently are willing to change jobs to receive it, according to a recent survey by Globoforce, an employee recognition company based in Southborough, Mass. More than half of those surveyed (52%) said they weren’t happy with the level of recognition they receive from their employers, and, despite today’s challenging job market, 38% of respondents said they were looking for a new job. The Global Workforce Mood Tracker survey collected 630 responses from fully employed people 18 and older at U.S. companies with 500 or more employees in August 2011. Those responses were compared with ones gathered in February 2011. Other findings: ■3  9% of workers said they don’t feel appreciated, a 7% increase from the previous survey. One major reason for their dissatisfaction: having to perform other employees’ duties along with their own. ■ 49% of employees said they would leave their current jobs to work for employers that recognized employees for their efforts and contributions. Of those searching for a new job, only 24% said they are satisfied with the current level of recognition they receive for their performance. ■ 63% of employees who have no intention of searching for a new job are happy with the level of recognition they receive. ■ 66% of employees planning to leave—but only 40% of those not looking for a job— think their company should improve its recognition program.

■ 77% of employees planning to search for a

new job—and 65% of those not looking for a job—said they would work harder if their efforts were better recognized.

…and a few good employees


conomic wellness depends on a competent work force. So, with 14 million Americans unemployed, why can’t companies find qualified workers? Manpower Group, a work force solutions and services provider headquartered in Milwaukee, Wis., offers these insights: ■ 52% of U.S. companies report they are having a difficult time filling jobs. ■4  7% of employers blame candidates’ lack of “hard” job skills or technical skills. ■3  5% of companies say prospects don’t have the requisite experience. ■2  5% of companies cite candidates’ lack of business knowledge or formal qualifications. ■2  8% of companies are increasing training and development.

—Tom Stoppard |


BedTimes January 2012


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Brief Sheet

8 time-saving secrets of productive people


oes it seem like your co-workers glide effortlessly through the workday, completing tasks and leaving work on time while you feel hopelessly behind before you ever reach your desk in the morning? As Alexandra Gekas of Woman’s Day suggests, this doesn’t mean your workload is twice theirs. Instead, it may mean your co-workers have incorporated time-saving skills into their workday that you have yet to master. Check out these eight workplace habits that will increase your productivity and reduce your stress level:

1 Take breaks Your co-workers may be more efficient be-

cause they take breaks during the day, which is like hitting the reset button, says Christie Hohlbaum, author of The Power of Slow: 101 Ways to Save Time in Our 24/7 World. In addition to lunch, she recommends taking a few 10- to 15-minute breaks in the morning and afternoon.

2 Start your day on the right foot If you are stressed out be-

fore you even begin work, your productivity will decrease by as much as 10%. Hohlbaum suggests beginning your day by taking a few minutes to decompress. Establish a ritual that helps you connect with people, such as chatting with co-workers.

3 Watch what you eat Eating a heavy lunch can make you

lethargic and wreck your ability to concentrate in the afternoon. According to Kari Kooi, a wellness dietitian with the Methodist Hospital System in Houston, you should keep your blood sugar levels steady by eating three meals and two snacks. Stick with fiber-rich carbohydrates, water-rich veggies and lean meat rather than processed foods.

4 Keep a flexible to-do list While daily lists can be helpful,

they also can be restricting. Stay on course by updating your list throughout the day, noting what has and hasn’t been accomplished. At the end of the day, create a fresh list.

5 Don’t be a slave to technology In a 24-hour access world,

it’s easy to lose sight of how much time you spend on the Web, on social networking sites or answering email. Set aside 15 minutes at lunch to scroll through social networks and 15 to 30 minutes a day to check your personal email.

6 Maintain a balanced workload Because different tasks

require different levels of concentration, divide chores into “weeds” and intensive work. Weeds are small tasks, such as answering email or returning phone calls. Intensive work, like preparing a presentation, requires more extended concentration. The key is to mix these up to have a variety of tasks requiring different types of concentration.

7 Pick your perfectionist battles While we learned in kinder-

garten to turn in perfect work, that ideal is not realistic in the workplace. Prioritize your work. When you write an informal email, give it a quick read and spell check but don’t pore over it two or three times. On the other hand, make use of your perfectionist tendencies when writing a report.

8 Just say “no” It’s easy to get overwhelmed on the job so

minimize the influences that contribute to that feeling. Resist the urge to participate in conversations with people who gossip and complain by wearing headphones or closing your office door. When you feel like you should say “no” to your boss, ask her to prioritize the tasks you have on your plate.

Consumer spending continues to fall


mericans have tightened their belts during the past five years as the economic slowdown continues to take a bite out of consumer spending. According to the U.S. Bureau of Labor



BedTimes January 2012

Statistics, average annual expenditures per consumer unit—measured as a family/ shared household or single/ financially independent person—fell 2% in 2010, following a decrease of

2.8% in 2009. In 2010, spending on food and housing fell 3.8% and 2%, respectively. Spending on entertainment decreased 7%, cash contributions to charities dropped 5.2%, and

spending on apparel and services dipped 1.4%. While spending declined, prices for goods rose 1.6% from 2009 to 2010.

See us at:

In the 1950’s 1 in 10 mattresses sold were all latex.





March 14-17, 2012, Indiana Convention Center, Indianapolis.

Today, we are seeing a resurgence of that popularity as All Talalay Latex Mattresses are the fastest growing category in specialty sleep.

800-Latex-US •


Entrepreneur growing company from Amish roots Dutch Craft expanding with licensing deal, new plant


By Dorothy Whitcomb

Above Early start Eli Schmucker began working in the mattress business as a teenager.

even years after founding Dutch Craft Mattress Co., President Eli Schmucker is confident about the company’s potential for continued growth. He predicts that within three years, the production volume of his Celina, Tenn.-based factory will have tripled and that a second facility, scheduled to open this year, will be fully operational. Such growth—and Dutch Craft’s very identity—are tied to an unwavering commitment to quality, Schmucker says. It’s that commitment that drives every decision the company makes. “At Dutch Craft, our core belief is that we build the best product out there and that no one can touch us on quality,” Schmucker says. “Our challenge is to maintain our current standards as we grow.”

Below Primary plant Dutch Craft Mattress Co. has headquarters at a 45,000-square-foot plant in Celina, Tenn.

An Amish upbringing Schmucker draws all of his company’s core beliefs—integrity, honesty, hard work and the value of teams—from his Amish heritage. “I was raised in an Old Order Amish community in Middlefield, Ohio,” he says. “We had horses and buggies

and, like all Amish, I left school after eighth grade.” His formal education ended then, but his interest in learning never did. An affinity for motors and automobiles drew Schmucker away from the Amish life. By the time he was 17, he was working at Therapedic of the Great Lakes. And at 21, he was running that Therapedic factory. In fact, it was at Therapedic that the idea for Dutch Craft was born. When the company relocated its plant in 2002 to a rural facility near his hometown, Schmucker facilitated the hiring of a group of Amish workers, a move that turned out to be successful. “I wanted more to do so I initiated the idea of a highend line of mattresses based on my ‘Amishness’ and the Amish employees,” Schmucker says. A Southern startup When Therapedic passed on the concept, Schmucker decided to pursue the idea himself and took an exploratory trip to Tennessee—a place he had visited on vacation and appreciated for its warmer-than-Ohio weather. “The locals encouraged me to start a company down here and offered to help,” he says. “I was amazed that they took me seriously.” Schmucker believed that he had three things going for him: He knew how to manufacture mattresses, he could fix machinery and he was extremely motivated. With those assets—and the proceeds from selling everything he owned—he and Bill Troyer, an Amish friend who Schmucker says “wanted to experience life,” set out for Tennessee to make beds. (Troyer later left the company to return to school. He’s now in college and royalty checks from Dutch Craft help pay expenses.) Schmucker quickly learned that it took more than enthusiasm to launch a successful company. Initially structured as a factory direct, Dutch Craft foundered. “When I only sold one twin bed in a month, I knew I had to do something,” he says. What followed were two years of what Schmucker describes as “a really huge learning process.” “All I did was learn,” he says. “I learned how to use a computer, mastered QuickBooks software and read every book I could find on selling. If you have a passion for something, you learn it quickly and I really wanted this business to succeed.” Instead of relying on customers to come to him, January 2012 BedTimes

15 |


Doing it all Dutch Craft Mattress Co. makes a full line of mattresses, including innerspring and specialty sleep.

Schmucker took to the road, acting as his company’s only sales representative and knocking on retailers’ doors. When he delivered his first order, he found that his dealer customer was “hugely dissatisfied.” “The biggest lesson I learned is that dealers want quality and that they don’t want returns,” he says. “I decided right then that I wouldn’t use convoluted foams or fiber pads. I would use no foams with less than 1.5-pound density and all foundations would be made of hardwood. Today, even with beds that retail at $399, we have no returns.” A commitment to producing only high-quality products set Dutch Craft on a path to success. In 2011, the company posted $4 million in annual sales, an increase of 30% over the year before. Schmucker projects that within five years, annual sales will have doubled over 2011’s figure. Sue Eldridge, Dutch Craft’s bookkeeper and project manager, thinks that projection may be conservative. “Even in a bad economy, our sales have increased each year,” she says. “We’ve already surpassed many of Eli’s sales goals. If we keep growing the way we are, the next |


BedTimes January 2012

five years should be amazing.” Dutch Craft’s platform for growth seems sustainable. The company completely jettisoned its initial factory-direct model and now puts all of its efforts into wholesale sales to retailers. Four years ago, a 45,000-square-foot manufacturing facility replaced the company’s 5,000-square-foot startup plant. Dutch Craft’s current factory produces about 250 pieces a day but has capacity to turn out as many as 1,000. Schmucker plans to open an additional factory in New York this spring. He’s been shipping to the region for the past two years and has an average of 800 pieces a month going just to Pennsylvania, so he’s confident he has the volume to begin production there. “We want to start small and build from there,” he says. Partnerships & private labels Last summer, Dutch Craft signed a licensing agreement with Stuart Carlitz’s Mattress Development Co. to produce and distribute Eclipse and Eastman House brands in Alabama, southern Indiana, northern Georgia, Kentucky and Tennessee. “I’m very particular about not selling to two guys in the same

town,” Schmucker says. “Licensing gives us an opportunity to sell into a new region and to offer retailers opportunities they’ve never had before.” Dutch Craft also produces three private-label brands. For now, Schmucker is satisfied with his company’s private-label and licensing deals and isn’t looking for additional partnerships. “I need to get these up and running and always want to be able to focus on Dutch Craft first,” he says. The Dutch Craft brand Dutch Craft offers a variety of mattress constructions and designs under its own name, including an environmentally friendly collection called Back to Nature. A group of gel mattresses is scheduled to debut this month. The Paradise collection, introduced a year ago, has rapidly become a best-seller. With suggested retail prices from $799 to $2,999 for a queen set, the 12-model memory foam and latex collection is the company’s most expensive. It’s also a bit of a departure for a company that has specialized in innersprings— though many with foam and latex comfort layers—and foam-encased coils.

“I was skeptical about this in the beginning, but none have come back and we have had nothing but rave reviews from dealers and consumers,” Schmucker says. “I think the industry is moving toward foam and latex and this Paradise collection could end up contributing about 25% to annual sales in two years.” The Bouquet collection is Dutch Craft’s entry-level offering, with suggested retail prices from $399 to $999 for a queen set. Because customer demand remains high for two-sided innerspring mattresses, the company “still makes a ton of them,” Schmucker says. Most Dutch Craft bedding is sold through furniture retailers and specialty sleep shops in nearly a dozen states: Alabama, Arkansas, Illinois, Indiana, Georgia, Kentucky, Missouri, Ohio, Pennsylvania, Tennessee and West Virginia. The company has about 250 active accounts, but also does a substantial amount of custom work. “We’ve done almost all the tour buses for country music stars, including BarlowGirl, Aaron Tippin and Taylor Swift,” he says.

Profile Getting the word out It was only last year that Schmucker began to seriously consider the benefits of marketing. “Eli has always been more interested in developing product than dealing with marketing,” Eldridge says. “He was counting on word-of-mouth to sell the product.” But Schmucker has come to believe that marketing and consumer education are synonymous. Dutch Craft now makes marketing and point-of-purchase materials available to retailers and has upgraded in-store displays with bed skirts, pillows and foot protectors. Schmucker jokes about “crawling out from under a rock,” but it would be a mistake to underestimate this 31-year-old leader. His employees don’t. “Eli was always taught to work

hard, do the right thing and respect other people,” Eldridge says. “That rubs off on everyone around him. He thinks of us as family and cares about what we’re doing, not only at work but outside of it, as well.” She adds: “Eli makes Dutch Craft what it is. He expects us to make a quality product and to work hard to achieve that. We don’t let problems get ahead of us. We all want the company to grow, but we want to keep the quality because it makes our customers happy and that makes us happy.” Meanwhile, the confident young man who set out to build “the very best mattresses” remains confident, if more realistic, after several years of experience. Dutch Craft, Schmucker hopes, will be a long-term player in the industry.




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He looks to companies like ultraluxury brand E.S. Kluft & Co. as guides. “The sky is the limit for us,” he says. “As time passes, everything

gets stronger. I don’t know how big we want to get. We certainly don’t want it to happen overnight. You don’t become Earl Kluft overnight.” ■

January 2012 BedTimes

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The big BAND theory A survivor’s

guide to problem solving / By Elaine Dumler

pens to you, but how you handle it that matters. This is when problem solving becomes a critical life skill. Resilience is the ability to recognize, recover from and adjust to misfortune or change—in short, to bounce back. Sustainability means figuring out how to get through a situation effectively and end up better for it. Resiliency and sustainability work together as you identify stressors that work against you and learn to get through them with fortitude and dignity. It’s like a rubber band: A crisis stretches you to the limit and when you’ve solved it, you return—intact—to where you were before. With the application of four tools that form the acronym BAND, you can solve problems like Makala.

B It’s not what happens to you, but how you handle it that matters.


iam walked into his office and was hit with problems from all directions—there were snags in a critical shipment to his largest customer, the company’s phone system was down and his computer wouldn’t load a PowerPoint presentation while executives from a prospective client waited impatiently. The tension was debilitating, which wrecked his mood, annoyed co-workers and compromised his ability to do his job. By the end of the day, Liam had been called to his boss’ office to be reprimanded. On the same day, Makala arrived at work to face similar problems stacked up on her desk—plus she had to fill in for a co-worker who didn’t show up. But unlike Liam, Makala wasn’t thrown off track and maintained her composure. One by one, she handled the crises, which lightened the mood of her co-workers. By the end of the day, she had been called to her boss’ office to be praised and promoted. Scenarios like this are played out in businesses every day. No one has a perfect day at work. That’s why it’s called work. So how did Makala breeze through the same problems as Liam, keep her cool and come out on top? Through a two-word, problem-solving technique often used by people in the military, public safety and other high-stress occupations: resiliency and sustainability. Both principles center on the realization that it’s not what hap-

—Breathe As stressors appear, step back—physically, mentally or both—and take a deep breath. This alone will help you clear your head, which enables you to process new information more efficiently. Breathing helps relax your muscles and lets your mind begin to decipher the circumstances at hand. Also, try to diffuse heightened emotions, especially if you’re dealing with angry people. It’s hard to help customers if they’re still venting about their problems. Can you call someone, like a co-worker, to help you put things into perspective and get better control of the situation?


—Assess Now that you have a clearer head, prioritize the steps you need to take to solve the problem as fairly as possible. What’s the specific problem? Who is affected by it? What’s the most critical part that needs to be handled first? Don’t forget that at this point, you’re only identifying and prioritizing your steps, not acting on them. For example, if you receive a message from a customer requesting a significant change in an order, you probably would determine that your first priority should be to call the customer for more information and then contact the appropriate departments in your company to assess the logistics of the request.

January 2012 BedTimes

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Resiliency is the ability to bounce back.

—Navigate You now know the problem and have developed steps to solve it. The next step is to act on your plan. Look ahead and determine exactly what you want to have happen when a good solution is reached. What will the perfect solution look like? Implement your plan based on the outcome you want. As you execute each step, occasionally pause to make sure you are on the right track. Make whatever adjustments are needed along the way. Are you including the people who need to be involved in the solution? By doing so, they will feel you’re working with them and not against them.


—Deter You did it! You successfully dealt with a challenging situation. Now implement the necessary steps to prevent the problem from happening again. What lessons did you learn from this experience that will help you set up parameters to avoid similar issues?


tep 1 Think of a problem as a paper chain. Problem “links” can develop into hazardous situations. Identify the good and bad links—people, experiences, outside forces—in the chain. Sometimes



BedTimes January 2012

removing a link can make the chain stronger when you put it back together.


tep 2 To prevent problems from happening again, determine the level of control you have over each circumstance and factor. Eliminate or adjust what you have influence or authority over and let go of areas beyond your immediate control.


tep 3 Establish a safety net. It should consist of current contacts and any new ones you’ve built over the course of solving this problem. Think about what you learned about yourself and those around you. Who stepped up when they were needed? Keep the information for those support personnel close by so you will have it when you need it. Although BAND may seem like a timeconsuming process right now, as you become comfortable with this creative technique, you will be able to work through the steps in a matter of minutes to apply practical problem-solving skills quickly and instinctively to handle—even excel in—any situation. ■

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Management EFFECTIVE Leadership

What’s your style? 6 approaches

to direct and motivate your staff / By Glenn Gutek

You can’t just assemble a group of people and claim you have a team.

Style matters.

Charismatic Here, a leader uses the power of

Beyond guidance for matching your belt to your shoes, it’s a universal truth that extends to the way you lead. Understanding your leadership style and recognizing what approach is needed in certain situations enable you to act quickly and effectively. After a successful career in the military, Noah retired at a young age with a high rank. Well prepared for his transition into civilian life, he landed an impressive position with an upstart social media firm. His new employer was confident his previous leadership performance would transfer to the battlefield of competitive social networking and e-commerce. But within months, it became painfully obvious that members of Noah’s team were not responding well to his command-and-control leadership style. As Noah and his company learned, effective leadership in one field or with one team doesn’t always translate to another. The complexity of today’s marketplace has heightened the importance of knowing your leadership style and discerning which style will work best for a particular team. Here’s a look at the six most prominent styles in today’s work force:

her personality to motivate employees. This style may encompass a variety of personalities, but the common ingredient is that the energy ushered in by the leader is closely tied to her personality. Once “Elvis leaves the building,” however, so does some of the infectious energy. While this style has been praised and panned over the years, leadership studies recognize that there is value to those who bring energy to a company by their mere presence. The downside is that some teams don’t need to speed things up but rather could use a little slowing down. The charismatic leader is an excellent visionary and can elicit a loyal and passionate following. Where this style often falls short is in the attention to details.

Technical This style of leadership displays both knowledge and skill. It is revered in cultures where high economic value is placed on competence. It is leading simply by being the best producer of what your company produces. This leader can influence a work force with an impeccable reputation and set the bar for the standard of work quality. A technical style is difficult to replicate throughJanuary 2012 BedTimes

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Management out a company. Some leaders who strongly employ this style can become like the wizard in The Wizard of Oz, hiding behind the curtain, pulling strings and leaving everyone to wonder, “How do they do that?” Nobody can argue with the value that quality plays in any arena, but keep in mind there’s a distinction between leading the best and being the best.

Strategic This is leadership by connecting the dots. It’s embodied in people who tend to be global and conceptual thinkers. They not only are able to see the destination, but they know the path to get there must be identified and paved. Tragically, this style can be marred by the blues, because not only do strategic leaders see what could be, they see what is not.

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BedTimes January 2012

Team building Here, leader-

Directive Here we have leader-

ship is done by defining roles to build unity. It recognizes that you can’t just assemble a group of people and claim you have a team. Team-building leaders look at people individually and find individual roles for them to fill. At the same time, they align these individuals into a cohesive whole.

ship by control. While some say command and control are no longer cherished, any company in crisis would love to have a directive leader step forward and bring order out of chaos. There is still a need for directive leaders.

Managerial This leadership style focuses on systems and doing things right. Processes and systems are designed and understood so that operations function consistently. Though some would argue that managers are not leaders, effective managers do have a profound influence on those around them. In fact, they have the capacity to lead a culture that prizes management, even at the expense of effectiveness.

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Just the right style The most important thing to understand when examining leadership styles is to recognize that there are circumstances in which certain styles flourish and others flounder. Years ago, the common philosophy was to master all of these styles. Today, the world is too diverse and complex. Truthfully, nobody has ever been excellent at all styles. Most experts encourage you to know your style and work in an environment where your

style will thrive. As a leader, not only should you know your natural style, you should know the “shadow side” of that style: How does your winning formula undermine your effectiveness? Typically, a leader’s ineffectiveness will not be exposed, even if one of her weaknesses is revealed. Ineffectiveness shines when strengths run amuck. Remember the saying, “If all you have is a hammer, everything looks like a nail”? Some of the biggest leadership mistakes are made when you pick up a hammer but need sandpaper. Effective leadership in today’s diverse culture requires a team approach, and teams need diverse leadership styles. By employing the best leadership style for you and knowing when to adopt other styles, you can effectively lead your team to success. ■

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BedTimes January 2012

Meet the Millennials:

Getting to know your

n e x t



customer By Patricia Comroe Frank

ere they come—all 80 million-plus of them. Technically savvy—to the point of being technically dependent—they’re ultraconnected to their peers by a constant stream of texts and tweets from everpresent electronic devices. Loving their mobility, they’ve replaced land lines with “app”-filled smart phones. Many have college diplomas but are job hunting. If they are working, they don’t stay at one employer for long—this group job hops. Most have little savings; tuition debt makes them penny-pinchers. More often renters than homeowners, you’ll find them in the city, their preferred habitat. Having little trust in big corporations, they shrink from sales pitches, yet feel affection for certain iconic brands. Raised by kid-centric, indulgent parents, they sometimes think the world revolves around them. They generally get along with their parents and aren’t in a hurry to marry. A social conscience often guides their choices: Google’s principle “you can make money without doing evil” speaks to them. Meet your next generation of customers: the Millennials.

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‘We’re turned off by the hard sell. We want a conversation, not a pitch.’

Different names, many faces We’ll call them Millennials but, depending on the demographer, this generation has various labels— Gen Y, Echo Boomers, Generation Next, Net Generation, the Next Boomers—and birth dates. Typically, Millennials are defined as being born between 1980 and 1994, though some demographers extend the date to 2005. William Strauss and Bill Howe, authors of Millennials Rising: The Next Great Generation, use the birth dates 1982 to 2001. Depending on the birth-date parameters, Millennials number between 80 million and 86 million. A 2010 Met Life study says they represent 25% of the U.S. population. Even at 80 million, this generation is enormous, topping the culture-shaping baby boomers, which number 76 million. Millennials don’t just embrace multiculturism, they are multicultural. The Pew Research Center, a Washington, D.C.-based nonpartisan research organization that tracks issues, attitudes and trends shaping the United States, describes this generation as more culturally diverse than any previous group: 61% white, 19% Hispanic, 14% black, 5% Asian and 1% other. Shaping a generation Several major events—some tragic, some financially challenging and some technologically inventive— have molded the Millennials. “9/11 is their defining event,” says Edward Boches, chief innovation officer at the Boston-based Mullen advertising agency. “It made them feel vulnerable, less confident in their future security.” The recent Great Recession is another influencer.



BedTimes January 2012

Boches puts it bluntly: “They feel screwed.” Carol Phillips, president of Brand Amplitude, a market research firm based in Stevensville, Mich., agrees that the terrorist attacks on the United States on Sept. 11, 2001, were a defining event for Millennials, but also points to mass shootings at Columbine High School (1999) and Virginia Tech (2007), as well as Hurricane Katrina’s hit to the U.S. Gulf Coast in 2005, as seminal events. And, she reminds us, Millennials “can’t remember life prior to the Internet.” B.J. Birtwell, president of the Armory Ad Agency & Production Co. in Dana Point, Calif., emphasizes how peer influence defines this group. “We must not forget how peer-to-peer sharing, social media and products like the iPhone have shaped their definition of what ‘immediate’ or ‘consumption’ means,” Birtwell says. “Beyond events, trends and products, the most influential shaping comes from their peers. This is often overlooked.” Bleak employment prospects impact every aspect of Millennial lives: marriage, housing, buying power, world view. A 2010 Pew study found that “fully 37% of 18- to 29-year-olds are unemployed or out of the work force, the highest share among this age group in more than three decades.” Phillips calls them “almost a recession generation.” Despite the tough economy and perhaps because of their relative youth, Millennials remain optimistic about their futures. And they have their share of success stories: Facebook founder Mark Zuckerberg (age 27), Mozilla software developer Blake Ross (age 26), basketball star LeBron James (age 27) and

entertainer Miley Cyrus (a mere 19), to name a few. Millennial entrepreneurs and developers, often working in accelerator groups in technology hot spots, are founding fast-growing digital and e-commerce companies. What sets them apart The Millennials are the most connected generation in history. The Pew Research Center calls them “history’s first ‘always-connected’ generation, treating their multitasking, handheld devices ‘almost like a body part.’ ” Millennials are great at working in teams but

Rules of engagement: Selling to Millennials

1 2 3 4 5



 reate a conversation Millennials care more about what their C peers tell them than what marketers tell them. And they’re in constant communication via texting, instant messaging, Facebook, YouTube, etc. Your goal—and challenge—is getting your products endorsed by the group. Use “pull” advertising techniques rather than “push.” Craft a new media strategy Selective print and broadcast campaigns still belong in a comprehensive advertising program, but digital media must take a starring role when trying to reach this generation. Your efforts should include websites (particularly mobile-enabled sites), social media (especially Facebook and YouTube), online advertising and search engine marketing. Be transparent and engaging What’s the story behind your brand? What’s unique about your company history? Engage buyers with a video showing how your products are made or the evolution of mattresses through the ages. Create online quizzes or, as Jason Ryan Dorsey, chief strategy officer at the Austin, Texasbased Center for Generational Kinetics, suggests, sponsor an online contest asking, for example, “If you could send a new bed to anyone in the world, who would it be?” Promote it heavily on your website and through social media.  ame that tune Millennials love music—both live N and downloaded. Consider marrying your brand to a memorable tune. Focus on lyrics that demonstrate a user benefit or capture a sense nostalgia—many of this generation actually like their parents’ music. Sponsor a music festival or concert. Reward loyalty More than three-quarters (77%) of Millennials participate in corporate or retailer loyalty or reward programs, according to a survey conducted by Harris Interactive on behalf of Montreal-based loyalty management firm Aimia. But, cautions Aimia’s Rick Ferguson, “They expect reward programs to be free, easy and fast.” In exchange for rewards, 44% of Millennials will promote products through social media, the survey found.

BedTimes January 2012

may not be strong leaders. Boches defines them as “collaborative, digitally savvy, entrepreneurial, open-minded and inclusive.” Phillips’ research finds them to be more adaptive than previous generations. “They want to participate, get engaged” in the world around them, she says. Given the current economic reality, it’s no surprise that Millennials aren’t particularly acquisitive consumers—except, perhaps, for those electronic devices that are viewed as necessities. “While they aspire to be successful, they don’t aspire to live in mansions. They don’t want a house full of stuff,” Phillips says. “Gen Ys make things last and don’t buy top-of-the-line products. They live small.” “Living small” is often dictated by the size of their living spaces. Spurning the suburbs, they’re drawn to urban settings. City apartments with tiny square footage mean belongings must be pared down to bare essentials. Lightweight, portable, multiuse furnishings have high appeal for this group. Consider price points, too. As Phillips notes, “The economy has forced them to be thrifty. They’re in search of the best value, the best deal.” Cautious shoppers, Millennials use the Internet and social media to search for and compare products and to get peer recommendations. Given this, successful manufacturers must craft and implement a digital marketing and sales strategy to capture their attention. Though confident in purchasing online, Millennials remain wary of making a bad buying decision. Most still go to brick-and-mortar retailers for big-ticket purchases. Experts say mattress manufacturers would be wise to develop branding strategies that build confidence and drive online shoppers to retail outlets. Millennials expect immediate payback on their expenditures. “We don’t think long term. How can your product improve our lives now?” asks Jason Ryan Dorsey, chief strategy officer at the Austin, Texas-based Center for Generational Kinetics. Dorsey—also known as “The Gen Y Guy”—describes his generation as “robo shoppers.” “We research online, buy offline in the store,” he says. Keeping this “now” orientation in mind, mattress manufacturers might do best to focus on the immediate payoffs of a new mattress, such as improved sleep and better back health, or how the next step in life, such as moving into a new place, can prompt a mattress purchase. Marriage, often a trigger for a new mattress, isn’t a high priority for Millennials right now. Research from Pew



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How the generations compare Silent Generation Born 1925-1945 Population 42 million Defining moments Great Depression, World War II New advertising medium TV Key characteristics Conformers, hard workers, technologically challenged, retirees

Baby boomers Born 1946-1964 Population 78 million Defining moments Assassination of President John F. Kennedy, Vietnam, Watergate New advertising medium FM radio Key characteristics Idealistic, collaborative, experimental, rebellious

Generation X Born 1965-1979 Population 50 million Defining moments Challenger shuttle explosion, fall of the Berlin Wall New advertising medium Internet Key characteristics Latchkey kids, skeptical, self-reliant, media- and technologically literate

Millennials Born 1980-1994 Population 80 million Defining moments Columbine High School and Virginia Tech shootings, Sept. 11 terrorist attacks New advertising medium Social media Key characteristics Goal-oriented, team players, technology masters Source: U.S. Census Bureau, Law Practice Today, Fairleigh Dickson University, American Marketing Assn.



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loyal to family

shows that many in this generation are postponing getting hitched. Only 22% of Millennials are married. By comparison, 33% of Gen Xers, 40% of boomers and 50% of the Silent Generation were married at the same age. Millennials also are postponing having children. For the third straight year, U.S. birth rates dropped in 2010. Experts attribute the decline to the weak economy. Timothy Smith—a five-year financial services industry “veteran” and, at age 28, a Millennial himself—writes and publishes Echo Boom Bomb, a blog that focuses on his generation from an economic and financial perspective. Smith says Millennials have “light wallets” and a different perspective on homeownership. “They don’t appear ready to buy homes and may not want homes,” he says. “The rental housing market is getting younger—the top amenity they want is Wi-Fi.” If they do want to buy, they’re hard-pressed to swing the purchase. Smith quotes one Millennial as saying, “I want to buy a home in the next five years or so, but honestly man, I don’t know how I’m going to do it. I just don’t make that much money.” How they shop & what they buy Peer recommendations and positive online reviews from product users and owners strongly influence Millennials’ purchases. Winning the stamp of approval of the group makes the sale. “They really want to know how the product or brand will bring a sense of belonging,” Birtwell says. “What social benefit can your product or brand offer that can deliver on that key psychological driver? Although price and features are important, they’re not nearly as important as providing social benefit.” Boches concurs. “Clearly price is an important attribute, but so are human and social values,” he says. “I think many want brands that aren’t ‘selfish’ and for-profit only, but that are for a purpose.” While Millennials favor environmentally friendly products, Phillips says they are “not willing to pay more for organic.” “Value is important—they’re tight,” she says. But they do make exceptions for cool, musthave products and will spend significant dollars on luxury brands that they deem necessities. “Gen Y is price sensitive, however, consider that the iPhone is priced at the top of its class and still remains the No. 1 seller,” Birtwell says. “We would never recommend anchoring Gen Y strategy on price.” Millennials are recrafting the shopping experience. This generation depends less on what you tell them about your products and more on what independent research and peer recommendations tell them. “They don’t care about brands unless you give

‘We don’t think long term. How can your product improve our lives now?’

them a reason to care,” Birtwell says. “Their purchase process is very deliberate. By the time they’re ready to make a purchase, they know exactly what they want and know what they’re willing to spend,” Phillips adds. When considering a purchase, Boches says, “Millennials use Google search, Facebook and other social media, plus word-of-mouth. Advertising may still work, but less than on any previous generation.” “We’re turned off by the hard sell. We want a conversation, not a pitch,” Dorsey says. “Most manufacturers use ‘push’ marketing. With Gen Y, it should be more about the users.”

Millennials are skeptical, even cynical shoppers. “When you’re selling, make it clear you’re selling,” Boches says. “Understand who they are and what matters. Build a following and create advocates so that peer-to-peer marketing emerges.” Because Millennials don’t want to make a purchasing mistake, Dorsey recommends lowering the perceived risk. Comfort returns may appeal to this generation, as would opportunities to improve a purchased mattress with customizing accessories like toppers. “In some ways, we’re more educated, but need to be guided through the process,” Dorsey says. Put videos in your dealers’ stores or on your website that show Millennials exactly how your mattresses are made and what components, particularly environmentally friendly ones, are included in the constructions. Boches suggests giving Millennials plenty of tools that help them make decisions, including mobileoptimized websites that allow them to research your products while on the go—or in the store. The Millennial opportunity At fully one-quarter of the population, Millennials represent a rich opportunity for mattress manufacturers. Tricky to sell to, they must be approached on their own terms. Manufacturer transparency earns points with this group. Be honest and open about your products and look for ways to connect with this alwaysconnected generation. Often in debt and facing high unemployment rates, Millennials seek both a good deal and value. If the product is cool, even better. Because purchase decisions are strongly influenced by peer recommendations, building a strong social media presence is key for any company wanting to sell to this group. This generation must like a brand before buying. Provide them plenty of information about your products, along with tips on buying the right mattress for them, and you’ll convert Millennials from researchers to purchasers to brand loyalists. ■



BedTimes January 2012


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When Loss turns to Gain


Tax laws that help cushion a disaster By Mark E. Battersby

side from the unwarranted fear that the Internal Revenue Service might occasionally label a small, moneylosing business as a hobby and reject all the write-offs it has claimed, many businesses are actually profiting from their losses. That’s right: Handled properly, those inevitable losses can generate badly needed funds for a troubled mattress manufacturer or supplier. Losses can result from natural disasters, dishonest employees or customers, bad business decisions and a poor economy. Insurance provides protection from some types of losses, and tax laws help reduce the bite of others, but planning for or reacting to the losses of a business can mean survival and, in many cases, even profits. Although so-called business continuation insurance covers the expenses of a company temporarily forced to close its doors after a natural disaster, it’s critical to anticipate other possible losses and develop strategies for coping or seeking affordable insurance protection for any possible contingency.


osses from theft Losses resulting from theft are tax deductible in the year the loss was sustained. Tax laws say, however, that theft losses are actually sustained in the year in which they are discovered—not necessarily in the year in which they occurred. In other words, a theft loss is not deductible in the tax year in which the theft actually occurs unless that’s also the year in which the company discovers the loss. Going one step further, if, in the year of discovery, a reasonable possibility of reimbursement for that theft loss exists, the deduction cannot be taken until reimbursement is actually made or ruled out



BedTimes January 2012

as a probability. Remember: The basic rule states that for losses to be deductible, there must be a “closed transaction.”


nvoluntary conversions There are other occasions when business property is taken. The government can, for example, legally take property by the simple act of condemnation. A new law, ordinance or regulation may be passed that permits a local government to seize assets that are no longer permitted within their jurisdiction. The loss of any business property by actions outside the control of the manufacturer or supplier is usually labeled as an “involuntary” conversion. These actions are unusual in that they frequently result in a gain. The local government that condemns your parking lot is required to reimburse you. That reimbursement frequently exceeds a company’s book value or basis in that property, resulting in a taxable gain. Fortunately, the rules governing involuntary conversions permit the property to be replaced with property of a “like kind,” eliminating the need to report and pay taxes on that gain. Instead, the basis of the old “lost” property is transferred to the new, which postpones the taxable gain to some date in the future. The IRS treats gains and losses from thefts, seizures or condemnation as Section 1231 gains or losses. Under Section 1231, if gains from the sale of property used in a trade or business exceed any losses, then each gain or loss is treated as if it were from the sale of a long-term capital asset. If, however, losses exceed the gains, all gains and losses are classified as ordinary gains and losses.

Note: Information in this article is intended for general educational purposes. Consult with your own tax professional or legal counsel for specific guidance related to your business.

January 2012 BedTimes

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B Surprisingly, a number of businesses have profited from casualty losses.



BedTimes January 2012

usiness losses from a disaster To help cushion losses suffered by a company, the tax laws contain a special rule for disaster losses in an area subsequently determined by the president of the United States to warrant federal assistance. For those losses, the executive, business owner or manager has the option of: ■ deducting the loss on the tax return for the year in which the loss occurred or ■ deducting the loss on the tax return for the preceding tax year. In other words, a mattress manufacturer or supplier has the option of deciding whether its loss would be more beneficially used to offset the current year’s tax bill or better used to reduce the previous year’s tax bill and generating a refund of previously paid taxes.


aining from a loss Surprisingly, a number of businesses have profited from casualty losses. If, for instance, the amount of the insurance reimbursement received is more than the book value or adjusted basis of the destroyed or damaged property, there actually may be a gain. The fact that a gain exists doesn’t necessarily mean it will be taxable right away. Most manufacturers and suppliers are able to defer the gain to a later year, or perhaps indefinitely, simply by acquiring qualified replacement property. In calculating that gain, any expenses incurred in obtaining the reimbursement, such as the expenses of hiring an independent insurance adjuster, are subtracted. Then, if the same amount as the rest of the insurance money received was spent either repairing or restoring the property or purchasing replacement property, tax on the gain may be postponed. But the

replacement must occur within two years of the tax year in which the gain was realized.


bandonment Finally, there are those losses that every company can control—a loss allowed for the abandonment of an asset. All a manufacturer or supplier needs to do is “manifest an intent to abandon the asset and make some affirmative act of abandonment.” The resulting loss is generally the adjusted basis or book value of the abandoned property. If a depreciable business or income-producing asset loses its usefulness and is abandoned, the loss is equal to its adjusted basis. Obviously, the abandonment loss must be distinguished from anticipated obsolescence. If a nondepreciable asset is abandoned after a sudden termination of its usefulness, a loss also is allowed in an amount equal to its adjusted basis. This applies to the abandonment of an enterprise, as well as to intangible assets, such as contracts.


oo many losses When the expenses of a business exceed its income, it suffers a loss. If a mattress manufacturer or supplier has too many tax deductions and too little income, a net operating loss usually results. Many businesses are using losses incurred during the economic downturn to reduce income from prior tax years, providing a refund of previously paid taxes. The IRS recently clarified the procedure for reaping the benefits from the expanded loss carryback option. Almost everyone is allowed to carry back a net operating loss from a trade or business, applying it as a deduction against prior income and to deduct from succeeding years’ income any unabsorbed loss. The relief provided under the Worker, Homeownership and Business Assistance Act of 2009 gave companies the option of choosing to carry back a net operating loss for a period of three to five years, which offsets taxable income in those preceding tax years. A net operating loss or a loss from operations carried back five years can offset no more than 50% of taxable income in that fifth preceding year. For net operating losses that occurred outside the window of Dec. 31, 2007, to Jan. 1, 2010, the carryback period is usually two years preceding the loss year and then forward to the 20 years following the loss year. A three-year carryback period exists for so-called eligible losses, including the portion of a net operating loss relating to casualty and theft losses, but not federally declared disasters. Unfortunately, net operating loss deductions are not permitted for partnerships or S corporations, although S corporation shareholders and partners in partnerships may use their distributive shares of any net operating loss to calculate individual net operating losses.


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osses that are shrinkage When is a theft loss not a theft loss? Consider the tax laws labeling it as inventory shrinkage and denying a theft-loss tax deduction. The supplies maintained by a mattress manufacturer or supplier obviously cost money. That cost, however, will not be taken into consideration or deducted until the goods are sold, used or disposed of. Naturally, if the goods are lost or stolen, the difference between the cost of all goods purchased and the amount received from the sale of the remaining goods will be less. There is no loss, however, because when it comes to goods or supplies, their purchase is reflected in the cost of the company’s inventory. The adjustment on their books and tax return for inventory shrinkage is permitted regardless of whether that shrinkage resulted from shoplifting, employee theft or because the item is simply missing. Insurance does provide protection from some types of losses, although the government—in the form of tax laws—provides a financial cushion for many of the losses suffered by a company. Unfortunately, recoveries via tax law are not always smooth, often requiring professional assistance or, at the very least, an understanding of how those tax rules work. Could your company profit from its losses? ■




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BedTimes January 2012

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‘I regret to inform you’ Straight methods

for giving employees bad news / By Phillip M. Perry

leaders of the company, lock arms and stop cooperating with the management. Instead of the negative approach, use phrases such as, “I have decided we need…” or “It has become clear to me…”. This helps position you as a connected leader and that builds credibility with your employees. Empathize with your employees, Anderson says, but don’t commiserate. In other words, it’s fine to use wording such as, “I can understand how you would feel discouraged by this news.” But avoid saying, “I feel the same way.” Once again, becoming the “naysayer in chief” separates you from the top decision-makers and undercuts your authority.

‘It’s important not to pass the buck.’


ad news. Leaders hate delivering it—and no wonder. It makes people feel terrible. It’s too easy to make a mistake in tone that can infect the entire workplace with a case of low morale. Leaders face a special challenge when times are tough. How do you announce budget cuts, layoffs, salary decreases or benefit reductions and still keep your employees motivated? The answer is to deliver bad news in good ways. Here are some tips on doing just that: Take charge Don’t undermine your own authority when you deliver bad news. “It’s important not to pass the buck,” says Randy Anderson, president of E3 Professional Trainers based in Lubbock, Texas. “Avoid saying things like, ‘Accounting is making us take these steps’ or ‘Yeah, you’re right, I can’t believe the powers that be are doing this.’ ” This type of phrasing communicates that you’re not in charge, which undermines your authority with your employees. “If you create a disconnect between those who send the message and the person who delivers it, the frontline people can turn against the company’s long-range strategy,” Anderson says. “They will start saying, ‘The boss doesn’t even believe in this strategy, so why should we?’ ” They lose faith in the

Damage control “Leaders in tough times often don’t control the flow of information,” Anderson says. “When there is bad news, you want to be the first one your employees hear it from, putting your perspective on things.” When you deliver the news, you can do so in a way that explains the short-term pain in relationship to long-term gain. Use wording such as, “We don’t expect this condition to last forever. But during the coming three months we have to make the following changes. We’re all going to take a small knock now to avoid a big knock a year from now.” You also can control the impact of bad news by engaging with those employees who are “thought leaders,” or people who influence others in the work force. You want to avoid letting your thought leaders interpret everything on the negative side, Anderson says. “People will start to look for the next person to be fired or the next customer to depart,” he says. Include your thought leaders in your strategy, Anderson says. Ask questions such as, “We are looking for a way to save $50,000. What are your ideas?” This approach has two benefits, Anderson says: “The naysayer has skin in the game and will be less likely to bad mouth. And also you can test the waters to see if that person can be a leader in a new position at some point.” Once you have engaged your thought leaders, get input from everyone. “It’s amazing the brainpower you have under your management that’s easy to overlook,” says Billy Arcement, a management consultant in January 2012 BedTimes



Leadership Prairieville, La. “You build ownership in the organization when you let employees give birth to ideas. So give people a chance to contribute.” It’s important to involve everyone in the process of seeking solutions. Put a problem on the table and ask, “What do you guys think?”You may not use any of their solutions, but keep asking anyway. “You have to challenge your employees to contribute rather than just come to work and collect their paychecks,” Anderson says. “Let them become part of the solution.” Stay upbeat Take positive, effective actions, always seeing the glass as half full. “As a leader you need to set the example for everyone,” says Diane Amundson, a management consultant based in Winona, Minn. “You need to find a balance between buying into the ‘doom and gloom’ of the economy and being in denial, pretending that there is nothing wrong.” One approach is to say something like, “We



BedTimes January 2012

Leadership refuse to participate in this recession. However, some of our customers and suppliers are participating, so we will have a few bumps. If everyone does their job exceptionally well, we will not only survive but thrive.” “Continue to notice what people do right and acknowledge that immediately,” Amundson says. “Employee surveys consistently show that people want to do work that is meaningful and feel appreciated. Focus on what your employees are doing well. This helps with burnout as people are being asked to do more.” Give them the big picture Share the steps you’re taking to resolve problems and move the company back to a state of full health. To a large extent that will mean uncovering the numbers. “Share financial information in the form of your business income statement on a quarterly basis,” Amundson says. “Report your revenues and bottom line and educate people on what those things mean. And share with them what

you are doing to turn around the numbers.” Sharing financials will help bring about two good conditions: Your employees will understand why you need to make the painful changes you’re making and they will see how the changes are making a positive impact on the business as the months go by. The process builds trust in both your plan and your company’s future. When it comes to maintaining a vigorous and productive work force, communication is king. “Companies that do employee satisfaction surveys invariably hear, ‘Communication needs to be improved,’ ” Amundson says. “I have never met a company that over-communicates. Especially in a slower economy, people want to hear both good and bad news. So be honest in terms of company and employee performance.” Creative leadership is vital to success in any economic climate. When times are tough, though, a firm hand on the wheel is more important than ever. Keeping the ship of business afloat in rough waters very often means mastering the skill of delivering bad news in good ways. ■

‘One company was considering emailing employee about layoffs. I love email but that is impersonal and stupid.’

January 2012 BedTimes 49 |

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Tackling tough situations How can you deliver bad news and keep your employees motivated? Here are some suggestions for handling three common workplace situations. Situation 1: You need to cut work hours across the board. “You can handle this problem in one of two ways,” says Randy Anderson, president of E3 Professional Trainers in Lubbock, Texas. “The first is to go to your ‘thought leaders’—those employees who tend to influence the thinking of the group—and tell them first. This has the advantage of investing them in your strategy and obtaining their input.” You can say something, like “I have something to tell the employees, but I want you to know it first.” The second approach is to bring all the employees into one room and have a single announcement. This reduces the risk of having information leak out ahead of time. You can say something such as, “I have something to share that’ll be frustrating to hear but this is the real world we’re in. I can understand this will cause uneasiness and frustrations and will mean we’ll have to go about things differently.” Then explain the problem that your business faces and the new cuts that have to be made. Don’t stop there: Ask for feedback. Say something like, “I want to work with you in any way I can to create a workable structure so we’re all more productive and we get back to where we want to be so we’re not in this position forever.” Finding productive ways to work within your new parameters is critical, Anderson says.

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Situation 2: You need to reduce health insurance benefits for everyone. “This is a good example of how sharing financial information can help resolve a problem,” says Diane Amundson, a management consultant based in Winona, Minn. “In your quarterly financial presentations you have been sharing how health care costs are going up. So when it comes time to have a tough talk, it is not a surprise.” You can say something such as, “As all of you are aware, health care costs have been skyrocketing. We need to get costs under control so we can keep our jobs here. So here are our options: We can increase deductibles or we can decrease benefits. But we cannot stay on our present path.” And what if you haven’t been having those critical quarterly talks? “Now is the perfect time to start sharing finances,” Amundson says. Situation 3: You need to lay off employees. “If you’re going to have layoffs, you have to keep it on a personal level,” says Billy Arcement, a management consultant in Prairieville, La. “One company was considering emailing employee about layoffs. I love email but that is impersonal and stupid. If you are going to be a leader, you have to look at people face to face, give them the truth and tell them why.” Give the terminated individuals reasons why their jobs are no longer needed. Communicate that the cut is being done for reasons other than fattening the bottom line. Instead, explain why it was necessary that their positions be cut in the grand scheme of things. “Take an honest approach and even those laid off can understand the rationale,” Arcement says. “You can also help people make transitions by warning them to be prepared for possibly more layoffs down the road.” And you can help them find new positions by providing referrals and references. Doing this the right way is vital. “If you handle layoffs badly, there is a big impact on the employees who remain,” Arcement says.

to the

Mattress industry!



innovation March 14-17, 2012 IndIana ConventIon Center Indianapolis, Indiana, USa

www.ispaexpo.coM The only trade show in the world devoted exclusively to the mattress industry.

The Voice of the Mattress Industry January 2012 BedTimes

53 |

education First class educational sessions will help you stay on top of the latest trends! Wednesday, March 14th

tuesday, March 13th Pre-Conference Seminar for International attendees

the World Mattress Industry: an overview and the Latest trends, 3:30 – 5:00 pm


Speakers: n alessandra tracogna, director, Country analysis and Forecasts Unit, CSIL Centre for Industrial Studies n Mark rupe, Senior analyst for Consumer durables, Longbow research n representatives of the Better Sleep Council (BSC) Designed especially for our international guests, this session will give you a comprehensive view of the current state of the international mattress market from several perspectives. The session will begin with the numbers, including a summary of the latest CSIL report covering mattress production, consumption and international trade from CSIL’s director of the country analysis and forecast unit. You will then hear from Mark Rupe, a senior analyst with Longbow Research, who has more than 10 years of experience in covering the consumer goods and services sector. Mark will discuss the mid and long-term consumer trends in the U.S. and global markets, and the impact the recession and changing demographics have on the mattress replacement cycle. Representatives of the Better Sleep Council (BSC) will then help you understand how to apply this information, as well as the results of the BSC’s research and other tools to your own market messaging. This session will be immediately followed by an InternatIonaL reCePtIon — your exclusive opportunity to network with colleagues and make valuable business connections with exhibitors and other attendees. RegistRation foR this session is limited to inteRnational attendees, and is pResented in english. |


BedTimes January 2012

Leveraging Key Benchmarking tools to Improve Your Bottom Line! 3:00 – 3:45 pm


Speaker: thomas noon, Principal, Industry Insights, Inc. How does your company measure up compared to your peers and how can you best plan for the future? ISPA’s Mattress Industry Wage and Cost Surveys (covering the U.S. and Canadian markets) can help! Both exclusive surveys, available only to ISPA members, provide a treasure trove of industry-specific data designed to help you understand how you stack up against your competitors and help you make better business decisions. Tom Noon, co-founder and principal of Industry Insights, Inc., the consulting and research firm that compiles ISPA’s surveys, will bring these numbers to life so you can you interpret and leverage the results while gaining insights into your own operations. All session participants will receive valuable executive summaries of the most recent surveys.

MoSt SeSSIonS are Free For ISPa MeMBerS! regISter onLIne todaY at WWW.ISPaeXPo.CoM

There’s lots of exhibit hall space to cover at ispa expo, so come with your colleagues so you can gather information, then share and compare!

thursday, March 15

What Motivates Women to Buy? Insights into How to Influence Women to Purchase and Build Loyalty with Your Brand, 7:45am – 9:00am Speaker: delia Passi, Ceo, Medelia, Inc. Women make or influence the vast majority of all consumer purchases, including mattresses. And although your marketing messages are important, they only go so far in closing sales and creating long-term customer loyalty with female customers. In this lively and engaging session, you’ll hear from Delia Passi, the nation’s leading authority on selling to women and CEO of a successful training, consulting, and research firm. Her WomenCertified® series of training programs are based on more than a decade of research and experience in understanding and translating the nuances of what motivates women to buy and their selection process. You’ll also be the first to hear the results of a survey of 5,000 female consumers that will be conducted exclusively for this event. Hear Delia’s findings about what influences women to purchase one brand over another. She’ll give you her considerable insights and help you develop strategies to successfully create, market and sell your bedding products to this highly influential consumer segment!

the Importance of Selling Sleep, 11:00am – 12:00pm Moderator: Cindy Williams, vP of Client Services, Inforetail Panelists: Karrie Forbes, vice President Marketing, Mattress Firm Pete Bils, vice President, Sleep Innovation, Select Comfort A mattress is more than just a commodity; it is an integral part of overall health and well-being. Find out how simply focusing on the importance of a good night’s rest can help educate consumers and sell more mattresses! In this interactive panel discussion, you’ll hear how you and your retailers can successfully engage customers by using sleep, rather than price, as the main discussion. Learn about statistics that show that more and better mattresses and accessories are sold when sales associates use this messaging. Also hear about the latest efforts of the Better Sleep Council to support you in correlating quality sleep to the purchase of a new mattress. Come armed with your questions for our panelists!

Succeeding in the Chinese Market – opportunities and obstacles, 3:00 – 3:45 pm


Speaker: Jeff Holmes, President & Ceo, J. Homes, LLC With an exploding middle class the demand for goods in China is growing rapidly. This offers many opportunities for mattress manufacturers, but entering this market also presents challenges and pitfalls. Jeff Holmes, former president and CEO of several of the largest U.S. furniture and bedding manufacturers/importers, and now consultant for manufacturers of interior furnishings, will discuss his insights on selling consumer goods in China. You’ll learn: • What is the Chinese consumer looking for? • How demographics, a rising standard of living and politics are driving Chinese consumption patterns • The dos and don’ts of exporting and strategic issues to consider when establishing your presence in China Hear what it takes to succeed in this burgeoning consumer market and find out about opportunities in other, growing Asian markets!

Friday, March 16

the Future of Mattress recycling, 11:00


– 11:45am

Moderator: ryan trainer, President, ISPa Panelists: Mary Sharkey, Sales and Production Manager, St. vincent de Paul Society of Lane County Pascal Cohen, President, recyc-Mattresses Inc/ recyc-Matelas Inc. A growing number of consumers and local governments are concerned about what happens to discarded mattresses. In response, more companies are dismantling used mattresses and selling the steel, foam and other materials they contain for use in manufacturing other products. At the same time, some states are considering whether to enact so-called Extended Producer Responsibility rules, which would make manufacturers legally responsible for collecting and recycling all used mattresses discarded in their states. While many agree that increased recycling of used mattress components would be good for the environment and the industry’s image, how best to accomplish that goal is unclear. Hear two recyclers as they share their insights on trends likely to affect mattress recycling, and discuss best practices to be more efficient and to attract a steady supply of used products. ISPA staff will also discuss the status of pending legislation.

MosT sessions are free for ispa MeMbers! regisTer online Today aT www.ispaexpo.coM Schedule subject to change. Photography and videotaping is strictly prohibited on the Exhibit floor. Audiotaping and videotaping of ISPA educational sessions is not permitted. Official photos and video taken at the event are the property of ISPA and may be used in future promotion and on ISPA’s social media sites.

January 2012 BedTimes

55 |

innovation See and compare the latest innovations in machinery, equipment, supplies, and services for the mattress industry… all in just a few days! 5

Top reasons to attend ispa expo 2012

see hundreds of suppliers froM around The world and a full range of products and services specifically for the mattress industry. find new suppliers and new producTs eXPo is a popular venue for new product launches – don’t miss the opportunity to see the latest offerings that can save you time, money, and increase your profits. geT ideas for cost-effective product enhancements, manufacturing efficiencies, and innovations. coMpare and ask quesTions as you see firsthand demonstrations of machinery and inspect hundreds of other products. build relaTionships and connect with business partners, colleagues, and customers.

who will benefit from attending ispa expo? • • • •

CEOs Business Owners Presidents, Vice Presidents Plant/Production Management/ General Management • Sales/Marketing Management • Purchasing • R&D/Engineers To regisTer, visiT www.ispaexpo.coM

products and services you’ll see at ispa expo • • • • • • • • • •

• • •

• •

• • • •

accessories adhesives adjustable Bed Mechanisms Chemicals Computer Software Fabrics (Knit, Woven, and non-Woven) Fibers Fixtures Foam Fr Materials and Services (barrier materials, product testing, quality assurance, and supply chain management services) Hard goods (bed rails, box springs, foundations components, frames, lumber) Innerspring Units Machinery & Fixtures (binding, border, flanging, label sewing, materials handling, packing, panel cutting, quilting, sergers, staplers, tape edge, wire-forming) Parts, Supplies & tools Soft goods (gel, eyelets, labels, insulators, filler cloth, mattress tape, tufting buttons, wools, webbing) Services (consultants, licensing opportunities, mattress disposal/scrap recycling, transportation & logistics) testing Labs and Services thread ticking top of Bed (pillows, mattress pads and covers, comforters)

Be sure to patronize those suppliers who support your industry through their exhibit at ISPa eXPo.

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networking Make Connections at these Special eXPo events! tuesday, March 13

Friday, March 16

International reception, 5:00



– 6:00pm

Sponsored by Flexible Foam Products, Inc. A reception exclusively for international attendees the evening before the show floor opens. Enjoy refreshments and mingle with other attendees from around the world. You’ll have the opportunity to meet with exhibitors before the show opens the following day. a fRee dRink ticket will be included with youR badge.

Wednesday, March 14

ISPa Women’s network Breakfast, 8:00


– 9:00am

Open to all women in new! the mattress industry! Start off your EXPO experience in the company of other women in your industry and enjoy a breakfast program featuring a special guest speaker. Connect with and learn from other women in all sectors of the mattress industry!

Wednesday, March 14

Welcome reception, 5:00


– 6:30pm

Sponsored by Atlanta Attachment Company. Enjoy food, drinks and fun socializing with friends and colleagues at this always entertaining and interactive opening event featuring the insomniaczzz, your industry band! youR badge is youR entRance ticket to the Reception which includes a fRee dRink ticket!

indianapolis, indiana has it all! 58


BedTimes January 2012

ISPa Industry Breakfast, 7:45am – 10:00am Featuring Keynote Alan Hobson, Mt. Everest climber, world adventurer, best-selling author, and cancer survivor

redefine the Possible! Join us for this special event that is included in your ISPA EXPO attendee registration. The story of Alan Hobson’s life is a stunning portrait in passion and persistence spanning four decades. He is not only an Everest summiteer and world adventurer, but a successful businessman who has trademarked his own niche. One of his greatest challenges came three years after summiting Everest, when he was diagnosed with acute leukemia and given less than a year to live. Thanks to raw courage and the miracles of modern medicine, he not only survived, but thrived. He has appeared on many national television talk shows, including Oprah. His expeditions have required millions of dollars to finance and execute, and they have stretched Alan’s leadership, team-building, sales and communications abilities even more than they have his physical skills. Hobson will share his story and offer practical steps to manage the unexpected and turn obstacles into opportunities! ISPA also takes this opportunity to recognize its leaders, acknowledging those who have given outstanding service to the industry.

ISPA EXPO 2012 will take place in Indianapolis, Indiana, USA, a convenient, centrally-located city. Accessible by all modes of transportation, downtown Indianapolis is easy to get to and is just 15 minutes from the international airport. The Convention Center is connected to major hotels, restaurants, and attractions via enclosed skywalks. The appealing and compact downtown area features public art and gardens, fine dining, shops, and entertainment. And in a city that built its reputation on sports, both amateur and professional, you’ll almost always find some sort of competition going on. Indy is the perfect place for business and pleasure!

visiT www.ispaexpo.coM To regisTer

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exhibiting companies A. Lava & Son Co. Adfast Corp. Advance Fiber Technologies Corp/AFT AEC Narrow Fabrics American & Efird, Inc. American Nonwovens Inc Apropa USA Aquila Textiles, Inc. Ateja Tritunggal Atlanta Attachment Company Balcan Plastics-First Film Extruding Baumer of America Bechik Products, Inc. Bekaert Textiles Black Bros. Co. BLR Lumber Bo-Buck Mills, Inc. BoMei Tex Ltd. BRK Group, LLC Bruin Plastics Company Inc. C.J. Hodder Lumber Company Carpenter Co. Changshu DAFA Warp Knitting Co., Ltd. ChemTick Coated Fabrics, Inc. Coats North America Costa International Cranston Trucking Company Creative Ticking CT Nassau Tape - Ticking Culp Home Fashions D.R. Cash Inc. Deslee Textiles USA Diamond Needle Corporation DMM Bedframe Lumber Duncan Tickings, Inc. Dunlap Sunbrand Int. DBA Jumpsource Earnhardt Manufacturing, LLC East Grace Corporation Eclipse Sleep Products/Eastman House Sleep Products Edgewater Machine Co., Inc. Enkev Group BV Enriquez Materials & Quilting, Inc. Entex Textil S. L. Ergomotion, Inc. FabricTech International Farnsworth Logistics, Inc. Fecken-Kirfel America Fine Cotton Factory, Inc. Flex-A-Bed Flexible Foam Products, Inc.



BedTimes January 2012

(as of december 2, 2011)

FMA Trading LLC Foam Solutions, Inc. Foshan Qianfang Home Supplies Co., Ltd. Foshan Ruixin Nonwoven Co., Ltd. GelMakers LLC Global Latex Global Systems Group Guangzhou Xinsheng Industrial Co., Ltd. Hangzhou Chenyu Textile Co., Ltd Hangzhou Landscape Imp.& Exp. Co. Ltd. Hangzhou Xiaoran Import and Export Co. Ltd. Hangzhou Xiaoshan Lianhong Polyester Textile Co. Hangzhou Xiaoshan Meixin Decorative Fabric Plant Hangzhou Xinyada Fabric Co., Ltd. Harvard Manufacturing Enterprises, Inc. Healthcare Co., Ltd. Henkel Corporation Herculite Products, Inc. Hickory Springs Mfg. Hot Melt Technologies, Inc. IDEAL Fastener Corporation Industrias Marves S.A. de C.V. Innofa Integrity Software Solutions Interwoven Group Jacquard Textile South America S.A. James Cash Machine Company Jayhawk Plastics, Inc. Jiangsu Dreamerry Mattress Manufacturing LTD John Marshall & Company LTD Jomel Industries, Inc. Jones Fiber Products, Inc. Knickerbocker Bed Company Komar Alliance LLC Ko-SI d.d. Lampe USA Inc. Latex Green (Private) Ltd. Latex International Latex Systems Co Ltd. Latexco LLC Lava Leggett & Platt Bedding Components Group Leigh Fibers, Inc. Lenzing Liberty Threads, N.A., Inc. Lonza Microbial Control Lucerne Textiles Inc. Macao Com. & Ind. Spring Mattress Manufacturer Markwell Florida Masias Maquinaria, S. L.

Matsushita Industrial Co., Ltd. Matt Tech Inspections Inc. Maxime Knitting Mills Inc. Middleburg Yarn Inc. MidWest Nonwovens Milliken & Company Monks International NV Ningbo New Haiyan Belt Industry Co. Ltd. OHM Systems Inc. Orsa Foam SPA Plastic Monofil Company Pratrivero Group Precision Blades Inc. Precision Fabrics Group Precision Textiles QAI Laboratories Qingdao Richriver Electrics Co., Ltd. Response Computer Group, Inc. Rock Island Industries SABA North America Shaoxing Huajian Mattress Machinery Simalfa Simmons Engineering Corporation Soff-Art Spec-Tex, Inc. Springs Creative Products Group Spuhl AG Stein Fibers Ltd. Stork Twin City Testing Sunkist Chemical Machinery Ltd. Tekscan Inc. Texas Pocket Springs The Govmark Testing Services Inc. Therapedic International Tietex TMI Products, Inc. Transfer Master Products, Inc. Uni-Source Textile Upaco Adhesives Viking Engineering Vintex Inc. VMOD Fibers LLC Westech Building Products ULC (Westlake) Wm. T. Burnett Wright of Thomasville Xidengbao Mattress Machinery (Guangzhou) Co., Limited Xsensor Technology Corp. Z Wood Products Co Inc.

Since   1944

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schedule at a glance tuesday, March 13, 2012 8:00am – 5:00pm 3:30pm – 5:00pm

ispa expo 2012 event sponsors

5:00pm – 6:00pm

registration open Pre-ConFerenCe SeMInar: the World Mattress Industry: an overview and the Latest trends InternatIonaL reCePtIon

Wednesday, March 14, 2012 7:00am 8:00am 9:00am 3:00pm 5:00pm

– – – – –

5:00pm 9:00am 5:00pm 3:45pm 6:30pm

registration open ISPa Women’s network Breakfast ISPa eXPo exhibit Hall open Leveraging Key Benchmarking tools to Improve Your Bottom Line! WeLCoMe reCePtIon, featuring the Insomniaczzz

thursday, March 15, 2012 7:00am 7:45am 9:00am 11:00am 3:00pm

– – – – –

5:00pm 9:00am 5:00pm 12:00pm 3:45pm

registration open What Motivates Women to Buy? ISPa eXPo exhibit Hall open the Importance of Selling Sleep Succeeding in the Chinese Market – opportunities and obstacles

Friday, March 16, 2012 7:00am – 5:00pm 7:45am – 10:00am 10:00am – 5:00pm 11:00am – 11:45am 5:00pm – 7:00pm

registration open Industry Breakfast featuring alan Hobson – “redefine the Possible” (included with your eXPo attendee registration) ISPa eXPo exhibit Hall open the Future of Mattress recycling Private exhibitor appointments

Saturday, March 17, 2012 8:30am – 10:00am 9:00am – 12:00pm

registration open ISPa eXPo exhibit Hall open

schedule subject to change.

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BedTimes January 2012


Culp sales up sharply in 2nd quarter


extile supplier Culp Inc., with headquarters in High Point, N.C., reports that net sales for its fiscal second quarter of 2012 were $58 million, a 19% increase over the second quarter of fiscal 2011. Culp’s fiscal 2012 second quarter ended Oct. 30. The company’s mattress fabric sales were up 24% and upholstery fabric sales rose 11% over the same period a year ago. Pretax income was $2.9 million, or 4.9% of sales, compared with $3.2 million, or 6.5% percent of sales, in the prior-year period. Net income was $6.3 million, or $0.49 per diluted share, compared with net income of $4 million, or $0.30 per diluted share, during the prior-year period. Net income included an income tax benefit of $3.4 million, while net income for the previous year included an $801,000 income tax benefit. “We are pleased with the positive sales trend for the second quarter and through the first half of fiscal 2012,” said Frank Saxon, Culp president and chief executive officer. “Both of our businesses had impressive sales gains, in spite of an uncertain global economic environ-

ment, and we are well-positioned to build further on this sales momentum. These trends reflect the success of our various sales and marketing initiatives, along with the benefits of our excellent design capabilities and efficient manufacturing platform. Overall, our profitability is down somewhat compared with a year ago, primarily due to higher raw material costs in both businesses and the currency impact in the upholstery fabrics business.” Culp’s financial position remains strong, the company said, with cash and cash equivalents and short-term investments of $24.3 million and total debt of $9.2 million as of Oct. 30—even with stock repurchases of $4.8 million, capital expenditures of $2.6 million and debt repayments of $2.3 million. As of Nov. 25, the company repurchased 585,000 shares of Culp common stock for approximately $5.1 million, or 4.4% of the shares outstanding at the beginning of its repurchase program announced in June. Mattress fabric sales for the second quarter were $35.2 million, compared with $28.3 million for the second quarter of fiscal 2011.



Second-quarter snapshot Total net sales

$58 million

Mattress fabric sales

$35.2 million

Upholstery fabric sales

$22.8 million

“Our mattress fabrics business delivered a strong sales performance in the second quarter, reflecting improved industry demand, and our sales and marketing initiatives,” said Iv Culp, president of Culp’s Mattress Fabrics Division. “Our ability to leverage recent investments in our production facilities, along with the expanded capacity, have enhanced our ability to serve our customers. We are wellpositioned with a diverse product line that meets the current market demand in all product categories.” Sales of upholstery fabrics were $22.8 million in the second quarter of fiscal 2012, an increase over the $20.5 million posted during the same period in 2011. The company projects that its overall sales in the third quarter will increase 2% to 6%, with pretax income expected in the range of $1.9 million to $2.8 million.

Comfort Solutions signs licensee Restwell Mattress


attress licensing group Comfort Solutions, with headquarters in Willowbrook, Ill., and Restwell Mattress Co., a manufacturer based in Surrey, British Columbia, have signed a deal enabling Restwell to make and market Comfort Solutions mattresses in several U.S. states. Restwell will distribute Comfort Solutions products throughout Idaho, Montana, Oregon and Washington. In 2011, Restwell began shipping products to Alaska, the first time that state has been served by Comfort Solutions brands. “We’re extremely pleased to

have Restwell Mattress as a new licensee serving retailers in five Northwest states,” said Dave Roberts, Comfort Solutions chief operating officer. “The company has been a successful family business since it was founded in 1990 and has a well-established reputation for building quality,

comfort and value into its products.” Owned by Chief Executive Officer Troy Zanatta, Restwell manufactures its own branded and private-label bedding and related sleep products. The company serves a range of furniture, department store and specialty mattress retailers in

British Columbia, Alberta and Saskatchewan, and also sells to hotels, motels and health care facilities throughout Western Canada. Restwell takes over a Comfort Solutions territory once serviced by Northwest Bedding, a Spokane, Wash.-based factory-direct manufacturer of mattresses and bedroom furniture. Comfort Solutions has 10 domestic and 37 international licensees, serving more than 80 countries. Its brands include King Koil, Laura Ashley, Sleep ID and eXtended Life. January 2012 BedTimes

65 |


Englander inks deal with India producer M

attress licensing group Englander Sleep Products has issued an international license to Mumbai-based Symbol Mattress Industries LLC to manufacture and market a full line of beds under the Englander brand. Symbol Mattress Industries is a major mattress producer for the India market. The deal is part of Englander’s continued international expansion, said President Kevin Toman.

“Symbol Mattress focuses on premium bedding and has established a sturdy quality reputation,” Toman said. “Their excel-

lence in product development and quality mattresses is recognized throughout India. This combination of premium products and high quality coincides with Englander’s position in the marketplace.” Englander has seven licensees in the United States and international licensees serving Australia and New Zealand, China, Egypt, Malaysia, South Korea and United Arab Emirates.


Lenzing fibers earn USDA label


The Lenzing Group, a supplier of cellulosic fibers headquartered in Lenzing, Austria, has announced that its Tencel and Lenzing flameresistant fibers have been certified as 100% bio-based by the U.S. Department of Agriculture. The certification is part of the USDA’s BioPreferred program, which encourages government agencies and contractors to purchase products that are bio-based or made from significant amounts of bio-based materials. The USDA defines bio-based products as “goods composed in whole or in significant part of agricultural, forestry or marine materials.” Additional information about the BioPreferred program can be found at

L&P teams with TV show As part of the company’s enhanced marketing focus, Leggett & Platt’s Consumer Products Group has partnered with the ABC television program “Extreme Makeover: Home Edition,” donating three Leggett & Platt Fashion Bed products to recently taped shows. The first Your mattress will provide years of comfort—and entertainment—if it’s sewn with A&E thread. Our filament brands, Anefil,® Anecord® and Cocoon Performance® Bobbins offer exceptional quality, performance and durability, so you’ll know you’re providing superior products to your customers. Call us at 1-800-861-3256 to try A&E filaments for your products.

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BedTimes January 2012

5/10/10 9:05:31 AM


Leigh Fibers closes Canada facility W

ellford, S.C.-based Leigh Fibers, a fiber and textile recycler and mattress industry supplier, shut down its fiberreprocessing facility in Montreal, Leigh Textile Co., in December due to a declining customer base for recycled textiles in Canada and the northeastern United States. “It was a difficult decision to close an operation that has been part of the Leigh family since 1948,” said Keith Taylor, Leigh Fibers

president. “But so many customers in this region have gone out of business or substantially reduced their volume in the past few years that the plant can no longer operate profitably. The Canadian market, however, remains an important component of Leigh’s future growth, and we will continue to serve our existing customers and to actively seek new opportunities.” All Leigh Textiles customers will be

served from the Leigh Fibers facility in Wellford, which has a capacity of 1 million pounds a day. It is North America’s largest fiber-reprocessing operation, Taylor said. The company provided careertransitioning support to all Leigh Textiles employees and retained an outplacement firm to aid in the effort. Some employees were expected to take positions with the company in South Carolina.

donation, a Euro platform bed with faux leather finishing, was included in an episode that aired Nov. 18. The bed went to the Dunning family of Cool Spring, Del. The company’s Sasha and Miami ornamental beds will be part of episodes of the TV program focusing on the rebuilding of Joplin, Mo., a city near L&P’s corporate headquarters in Carthage, Mo., that was devastated by a tornado in the spring of 2011.

Foundation’s videos raise awareness During Pancreatic Cancer Awareness Month in November, the Seena Magowitz Foundation—a charity best known in the mattress industry for its annual golf classic fundraiser held in December—debuted a series of videos to raise awareness of the disease. Roger Magowitz, a bedding industry veteran who is founder and president of the foundation, has asked the mattress and home furnishings industries to distribute the videos in an effort to educate and inform consumers about pancreatic cancer and what they can do to help. The four videos are available for download at www.seenamagowitz

Naturepedic is top pick in magazine Baby Bargains, a best-selling product review guide by Alan and Denise Fields, has rated Naturepedic’s Lightweight Series as the No. 1 pick in crib mattresses. Naturepedic, based in Chagrin Falls, Ohio, manufactures certified organic cotton mattresses for babies and children, mattress pads, sheets, pillows and changing pads.

January 2012 BedTimes

67 |


Bäumer offers new looper for foam cutting


lbrecht Bäumer GmbH & Co. KG, a machinery supplier based in Freudenberg, Germany, has introduced a new foam-cutting looper, a basic model that can be equipped with additional options to meet customers’ needs. “The great benefit for the customer lies in the flexibility to buy only the options needed for their cutting applications,” the company said. By utilizing the latest servo technology for the belt-drive motors, the machine allows users to exchange a foam roll without having to stop the machine completely. Bäumer also has been able to reduce the machine velocity during the roll-exchanging process to prevent unwanted marks on the foam or inaccurate cutting, the company said. After the new roll has been wound, the machine continues to cut with the selected production speed. A new option allows for an automated change of cutting thickness so that it is no longer necessary to manually adjust the cutting thickness of the foil during the production process. This ensures an accurate result from the start of the cutting process, according to the company. The looper can be serviced remotely using a VPN connection to the Internet.

Jumpsource plans introductions at EXPO


umpsource, a metal components supplier to a number of industries, is planning to roll out more than 100 new parts offerings at ISPA EXPO 2012, held March 14-17 in Indianapolis. Jumpsource, based in Beverly, Mass., describes itself as a supplier of “OQ” (“original quality”) parts for bedding and textile machinery. It is owned by Michael Porter Sr. and his children. The Porter family has a long history in the bedding industry. Porter’s father started Porter International in 1948. The machinery maker was sold to Leggett & Platt in 1998 and still operates under the Porter International brand name as part of L&P’s Global Systems Group. Porter and his two sons, Michael Porter Jr. and Sam Porter, formed Jumpsource in 1999 and, in recent years, re-entered the bedding business as an after-market parts supplier. “After being out of the industry and servicing customers in construction, golf and turf by manufacturing metal parts, I have realized that the people in the bedding industry are great people,” Porter said. “The bedding industry is small and everyone knows each other. I really missed it and am very happy I am back in it.” The company stocks more than 4,400 parts for bedding and textile equipment that it ships around the world. It has a Shanghai office that oversees its Asia manufacturing operations. U.S. distribution centers are located in Kentucky and Massachusetts. “We sell parts to the bedding industry that are as good as or better than the OEM’s (original equipment manufacturer) at a savings of 25% to 40%,” Porter said. “We make parts for all the major bedding machines and all the textile sewing machines.” The company’s bedding industry website is

Plenty of parts Jumpsource stocks more than 4,400 parts for bedding and textile equipment that can be shipped around the world. |


BedTimes January 2012


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An Ergomotion adjustable base is more than just a bed, it’s a lifestyle. Our bases revitalize customers and energize sales by adjusting to their needs. Ergomotion adjustable bases boost the profit potential of your average sale in the same amount of space as a traditional foundation. Our easy ordering, fast delivery, simple set-up, and impeccable customer service make Ergomotion base foundations an easy, profitable sell.


Atlanta Attachment extends technical support hours


achinery supplier Atlanta Attachment Co., with headquarters in Lawrenceville, Ga., has added after-hours emergency technical support staffed by an on-call technician from 5 p.m. to 8 p.m. EST, Monday through Friday. These hours are in addition to its standard weekday hours, 7 a.m. to 5 p.m. EST. The evening hours were added to better serve customers in other time zones, the company said. Callers may reach Atlanta Attachment technical support by calling 770-963-7369, Ext. 222. The company said all callers directed to its voice mailbox should leave detailed messages. Phone calls to technical support during emergency hours will be answered in the order received. Nonemergency requests will be handled the next business day. A dedicated email address,, has been set up for customers needing nonemergency technical assistance, documentation or machine manuals. For a prompt response, write “Help Needed” or “Information Needed” in the subject line and include a detailed explanation of needs, workstation name and model number, the company said.

Advanced Sleep Concepts sells Mattress Barn chain


attress maker Advanced Sleep Concepts Inc. has sold its Mattress Barn subsidiary, a 25-store retail chain in Florida, to Glenn Haneberg and Vito Favia, owners of two Midwestern sleep shop chains, Back To Bed and The Bedding Experts. Terms of the deal were not disclosed. Advanced Sleep Concepts, headquartered in Rome, Ga., is the holding company for Spears Mattress Co., the original Englander licensee. Its mattress brands include Englander, Lady Englander and Rest & Restore, as well as the newly introduced gel lines Englander Egel and Vista Body Cool. President Terry Spears retired from the company last year. “While at one time, owning a successful specialty sleep retailer fit the company’s strategic vision, this divestiture reinforces ASC’s primary strategy of reinvesting in our core manufacturing business,” said Dominick Azevedo, Advanced Sleep Concepts president and chief executive officer. “It will allow us to focus 100% of our efforts on enhancing relationships with our existing customers, as well as develop relationships with new customers, while optimizing the excess capacity in our production facility.”  Azevedo added: “I had the pleasure of working with both Glenn Haneberg and Vito Favia for five years during my tenure as executive vice president of sales at Simmons and feel confident they can lead the Mattress Barn team to the next level.”

Visit us at the 2012 ISPA Expo | Booth 2117

The Flex-A-Bed Base


The quality of sleep a mattress provides is only as good as the base it rests on. Our team of expert craftsmen hand-builds each Flex-A-Bed base in the USA, using the same principles of care and consideration we’ve built our reputation on since 1969. We stand behind our product with a transferable, industry-leading warranty that covers the entire base including motors, and our hands-off service policy allows customers to call our factory direct with questions about warranties and/or service.



We offer a full line of bases designed to suit every customer’s needs and can quickly ship any size order.

Furthermore, all Flex-A-Bed bases have been fire tested under worst case scenario situations, and we have an opinion letter from the CPSC that states that our bases can be used with any 16 CFR Part 1633 compliant mattress. Now, more than ever, Flex-A-Bed is the perfect adjustable bed partner for your company.

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BedTimes January 2012

Made in the USA


Pure LatexBLISS unveils ‘cool’ collections comfortable for warm or cold sleepers, providing a happy medium for them and their sleeping partners.” Two new collections the company is calling 3.0 Hybrids offer durability and comfort “at an attractive price.” The beds feature between 2 inches and 5 inches of natural Talalay latex with different recovery characteristics, along with high-density polyurethane support cores and heavyweight fabric covers. The three models in the Fast Response 3.0 Hybrid group offer traditional Talalay latex comfort and support. They have suggested retails from $1,399 to $1,999. Three beds in the Slow Response 3.0 Hybrid group incorporate the company’s new

ActiveFusion Talalay latex. The gel-infused latex mimics the feel of memory foam and the gel-infused ticking adds extra cooling. They retail for $1,499 to $2,099. “Retailers are looking for in-

Sealy fundraiser aids Salvation Army



tlanta-based mattress brand Pure LatexBLISS is introducing three latex collections at the Las Vegas Market, which starts Jan. 30 at the World Market Center in Las Vegas. The company’s new Climate Control ActiveFusion collection incorporates gel and phase-change material in both the Talalay latex core and the fibers of the fabric cover. The beds have suggested retail prices from $1,499 to $3,299 for a queen-size set. “This collection is designed to appeal to a variety of consumer issues and needs,” said Kurt Ling, Pure LatexBLISS co-founder and chief executive officer. “ActiveFusion technology makes sleeping more

novative new products that give gel entries a point of differentiation—and reason for existence,” Ling said. “Incorporating gel into the ticking places it closer to the sleeper’s body, optimizing the cooling and comfort benefits, which provides consumers with a good night’s sleep.”

For the second year in a row, Trinity, N.C.-based mattress maker Sealy and its luxury Stearns & Foster brand are holding a Gift of Sleep fundraiser to benefit the Salvation Army and its residential shelters. For every Stearns & Foster sold through participating retailers, Sealy donates $100 toward new mattresses for the shelters. The Gift of Sleep runs through Jan. 8. The program calls attention to nearly 3.5 million Americans experiencing homelessness, while emphasizing the Salvation Army’s continued need for mattress donations, Sealy said.

Catch your competitors napping. Some mattress manufacturers haven’t woken up yet to the fact that consumers want more than comfort and value… they want to feel they’re reducing waste and preserving our environment. That’s what SafeLeigh™ shoddy does. SafeLeigh is a unique blend of fire-retardant aramids, made with 100% recycled materials. It can differentiate your products and assure you of high quality and cost-effectiveness. SafeLeigh is one of many innovative solutions from Leigh Fibers, the global leader in fiber and textile reprocessing. Want to catch your competitors napping? See us at the ISPA Expo, Booth 1133.

Recycling Solutions for Generations Leigh Fibers, Inc. 1101 Syphrit Road, Wellford, SC 29385

Tel: (864) 439-4111 — Fax: (864) 439-4116 e-mail: —

January 2012 BedTimes

71 |


Verlo rolls out gel line V

erlo Mattress Factory Stores, a factorydirect chain based in Fort Atkinson, Wis., has launched a new line of gel foam mattresses The Verlo Cool Contour Gel line “combines new materials with a signature approach to custom fitting each person and crafting the mattress locally to fit individual sleep needs,” the company said. The

beds “sleep cool, relieve pressure, respond quickly and minimize restless sleeping.” The open-cell, gel-infused foam in the bed’s top comfort layer “whisks heat away from the body and is 12 times more breathable than memory foam,” the company said. The new mattresses come in three comfort options: firm, plush and extra-plush. “Gel foam beds are popular for a good

Starsprings Design Centre™ When seeing is believing and feeling is the truth it is most important to know what you are buying. Therefore we have created a test facility within the walls of our headquarters in Herrljunga Sweden. In a relaxed environment you have a full range of our products to decide what fits your next generation of beds.

Start here! w w w. s t a r s p r i n g s m l s . c o m The journey starts at our online MLS configurator, contact us to get your own user account.

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BedTimes January 2012



reason—customers say they sleep better than any other type of mattress on the market today,” said George Holder, Verlo Mattress Factory Stores chief operating officer. “People are surprised at how quickly the material cradles their body,” said Darren Brylow, store manager at Verlo Mattress Factory Stores of Greenfield, Wis. “We had one customer stop in the store after buying a gel bed to thank us and said the bed changed his life.”

Ergomotion reports strong growth in 2011


djustable bed supplier Ergomotion reports that it experienced “exceptional growth” in sales, staffing and facilities during 2011. The Santa Barbara, Calif.-based company hired new employees in sales, marketing, logistics, administration and customer service, effectively doubling its employee roster. To accommodate its expanded staff, the company moved customer service and warehousing functions to a separate building one block from its headquarters. The new facility houses a call center and shipping center. Sales in 2011 were quadruple those of 2010, the company said. The growth came, in part, from a vested partnership with a new national distributor, 19 East, in Santa Barbara. Ergomotion principals hold a stake in the new company. “We are continually creating programs to help the industry understand that we are not selling an adjustable base, we are creating value-added options to better your mattress program,” said Kelly Clenet, Ergomotion co-founder and president. “We try very hard, as well, to be the best support vendor in terms of customer service, marketing support and innovation within the category.”

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Jamison turns factory space into showrooms

Showing off Jamison Bedding’s plant in Gallatin, Tenn., now has about 3,000 square feet devoted to displaying its products.


amison Bedding, a mattress maker based in Brentwood, Tenn., has converted nearly 3,000 square feet at its factory in Galla-

tin, Tenn., into showrooms for its full lineup of Jamison and Spring Air-branded products. “Our newly introduced branding—‘We Make Sleep Different’—applies not just to the products we make, but to how we want to present ourselves and serve our customers moving forward,” said Ken Hinman, Jamison senior vice president of sales and marketing. “In keeping with that, we’re opening the doors of our company in new ways, which includes inviting retailers to our facilities to meet our staff and to see our new Jamison and Spring Air collections.” The new showrooms enable the company to present as many as 32 Jamison and Spring Air

models in an open, well-lighted retail-like environment. The presentations include full topof-bed dressings, coordinated signage and other point-of-sale materials. Jamison became a Spring Air licensee last summer and began shipping Spring Air brands in November. Jamison also intends to use the remodeled space for internal product meetings, sales training, consumer research projects and other company initiatives, Hinman said. “We’re very excited about the expanded capabilities these showrooms afford us,” he said. “In 2012, we’ll be making many other meaningful changes in how we operate our business.”

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BedTimes January 2012

Snap to learn more.


Mattress Firm buys stores, begins trading on NASDAQ


attress Firm Holding Corp., parent of the Houstonbased sleep shop chain, recently announced an initial public offering of approximately 5.5 million shares of common stock priced at $19 per share. The stock began trading on the NASDAQ Global Select Market on Nov. 18 under the ticker symbol “MFRM,” where, by day’s end, it rose to about $22 per share. It closed at $22.37 on Dec. 9, just before BedTimes went to press. The retailer has some 800 storefronts in 25 states. Just prior to its IPO, Mattress Firm acquired 54 stores in Georgia, Missouri, Illinois and Minnesota from rival retail chain Mattress Giant. Mattress Firm Chief Executive Officer Steve Stagner told the Houston Chronicle that much of the net proceeds from the stock offering—estimated to be about $95 million—will be used to pay down debt and improve the company’s balance sheet.

Sleep Train acquires two other chains S

acramento, Calif.-based Sleep Train Inc., the parent company of mattress retailers Sleep Train, Sleep Country USA and Mattress Discounters, has expanded its presence in the Pacific Northwest through the acquisition of retail chains Mattress Outlet and America’s Mattress. The new stores bring the company’s total store count to 255. As a result of the acquisitions, Sleep Country USA added 14 rebranded storefronts in Washington and Idaho, and Mattress Discounters debuted in the Northwest with five new stores in Washington. “We are continually looking for strategic growth opportunities that allow us to reach new communities,” said Dale Carlsen, Sleep Train Inc. chief executive officer. “Through the acquisition of Mattress Outlet and America’s Mattress, Sleep Train Inc. is expanding rapidly into new regions, bringing local customers quality sleep products and a superior shopping experience.” This is the third recent acquisition for Sleep Train Inc., which bought Christian’s Mattress Xpress in 2011, adding three new Sleep Train stores in California.

January 2012 BedTimes

75 |


Ergomotion expands sales group with hire


rgomotion, a Santa Barbara, Calif.-based manufacturer of adjustable beds, has hired Ted Singer as senior account manager for the East Coast, a newly created post. Singer is responsible for assisting retail and manufacturing partners in growing their adjustable bed sales. He is a bedding veteran with more than 22 years of experience in the industry, the majority of which was spent at supplier Leggett & Platt. Most recently, Singer served as director of sales and national trainer for L&P Adjustable Beds in the eastern United States, South America and the Caribbean.  “I’m happy to be associated with such a dynamic company. Ergomotion is able to turn ideas into concept very quickly with exceptional quality,” Singer said. “The adjustable base market is one of the fastest-growing segments in the mattress industry. Ergomotion has innovation, adaptability in

an ever-changing market and the ability to create product to accommodate today’s consumer.” Singer’s hiring comes during a period of strong growth for

Ergomotion. In 2011, the company reported that it doubled its employee roster and it recently restructured its sales department. Johnny Griggs, formerly vice

president of sales, was named president of U.S. sales, and Gui Peres, formerly director of international sales and marketing, was named president of international sales.

Info Retail adds two to team


nfo Retail, a retail strategy and design agency based in Atlanta, has hired Jim Stoklosa as director of digital signage and development and Michelle Dorminey as project manager. Stoklosa’s post is a new one for the company. He is responsible for overseeing the integration of digital signage into clients’ retail strategies; advising on equipment, technologies and systems integration; Jim Stoklosa and providing return-on-investment analytics and metrics. He has 15 years of experience developing and marketing digital signage software, hardware, electronics and systems at a range of companies. Dorminey is responsible for advising clients on the integration of customer experience metrics with financial metrics. Previously, she was a marketing and financial analyst for Porsche Cars North America. She also served as director of finance and marketing at E.M.G. Contractors, a company she founded while in college. “We are capitalizing on the knowledge and talent of these two experts to strengthen leadership across our offerings in service design, Michelle Dorminey customer environments and customer experience,” said Ron Bushman, Info Retail president.

IMC promotes four in exec leasing ranks I

nternational Market Centers, which owns home furnishings, gift and home decor showroom and exhibition space in High Point, N.C., and Las Vegas, has promoted four members of its leasing Julie Messner Craig Staack team—Julie Messner, Craig Staack, Lee Hershberg and Margaret Powment, handling home furnishings ers—to vice president posts. leasing for IMC’s High Point Messner, a High Point native properties. Prior to joining the IHFC, Messner spent three years and formerly vice president of publication sales for the Internaas director of leasing for Merchantional Home Furnishings Center dise Mart Properties Inc. in High Point. in High Point since 2008, is now Staack, a senior-level furniture vice president of business

Hershberg has been promoted to vice president of home decor. Based in High Point, he previously served as IHFC’s vice president of accessory leasing since 2008. Lee Hershberg Margaret Powers Powers has been named vice president of executive with a 30-year track retradeshow in Las Vegas and will cord in retail, management, prodoversee the sales and management uct development and marketing, of the temporaries at the Las Vegas has been named vice president of Market. Powers is a 20-year vetbusiness development, responsible eran of the gift industry, holding for home furnishings leasing at top merchandising and corporate the World Market Center in retail positions with Hallmark Cards, Enesco and Hershey. Las Vegas. January 2012 BedTimes

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ISPA, others advocate for practical product stewardship


he International Sleep Products Association has become a founding member of the Product Management Alliance, a national organization that promotes free-market solutions to product stewardship. The alliance brings together product manufacturers and trade associations from a wide range of industries. Alliance members share a common belief that all parties in the supply chain share responsibility for managing a product throughout its life cycle. The group will advocate for voluntary, market-

based solutions to these issues and incentives for increased recycling and sustainable design. The alliance also will examine and monitor the economic and commercial impact of public-policy initiatives that mandate so-called “extended producer responsibility” programs that shift the

costs of product collection and recycling solely to the manufacturer. The group will work with experts in industry and government to develop consistent policies for product recovery, take-back programs and other extended producer responsibility models. Product Management Alliance founding

members represent the mattress, carpet, electronics, toy, paper, packaging/ transportation materials, plastics, personal goods and pharmaceutical industries. Chris Hudgins, ISPA vice president of government relations, serves on its board of directors. “As more states consider policies to address the disposal of mattresses, we will work with decisionmakers to educate them n

on the benefits of product management systems that recognize voluntary programs and spread responsibility among all parts of the manufacturing and distribution process,” Hudgins said. “Inefficient and costly mandatory programs for product disposal should be avoided and flexible, market-based systems that will achieve more economical results should be encouraged.”


For more information about the Product Management Alliance, check www.product

■ Quality assurance director/manager ■ Quality/system manager ■ Product testing manager ■ Quality specialist ■ Safety/environmental director and manager ■ Loss control engineer ■ Corporate risk manager ■ Product design engineer ■ Product safety manager/supervisor ■ Product liability manager ■ Import compliance manager ■ Technical director ■ Human factors analyst

Register for ISPA’s product safety program


re you involved in aspects of product safety, quality control or risk assessment at your company? If so, you’ll want to participate in the inaugural Certificate in Product Safety Analysis Program, sponsored jointly by the International Sleep Products Association and the Center for Supply Chain Management Studies at St. Louis University. The first course has been rescheduled for Feb. 21-22 in St. Louis. The program will benefit mattress industry professionals who hold any of these roles:



BedTimes January 2012

Faculty members include experts in risk assessment, compliance, regulation and supply chain management. Courses will address topics such as risk management, product hazard analysis, regulation and compliance, effective hazard analysis presentations, supply chain management, and product safety issues and trends. The two-day session concludes with group presentations and an exam. Participants who successfully complete the program will receive a Certificate in Product Safety Analysis. Tuition is $1,250 and does not include accommodations or travel expenses. If your company is an ISPA member and you’d like more information or want to register for the program, contact Mary Helen Uusimaki, ISPA vice president of membership and communications, at or 703-683-8371.



Register for EXPO The mattress industry’s largest show of machinery, components, supplies and services is just two months away. Register now to attend ISPA EXPO 2012, held March 14-17 in Indianapolis. You’ll find easy-to-use registration forms, plus links to hotels and information about transportation and the host city, at www.ispa Register by Feb. 22 to receive special advance rates.

Better Sleep Council taps new PR agency


he Better Sleep Council, the consumer research and education arm of the International Sleep Products Association, has named Marcus ThomasCleveland as its public relations and marketing agency of record. The BSC sought a partner for strategic development, public relations and social/digital media advertising and conducted an extensive search before choosing Marcus Thomas. “At the BSC, we have two sets of priorities. The first is to educate consumers about the importance of a high-quality mattress in achieving restful sleep.

The second is to demonstrate to ISPA members that our work is providing the value they demand from the BSC,” said Kärin Mahoney, BSC director of communications. “We were impressed, not just with Marcus Thomas’ creative direction, but with their explicit, targeted goals and measurable out-

comes.” “To us, the Better Sleep Council represents a fascinating creative challenge. We’re promoting a solution, not a brand, and we have to make that solution resonate in a cluttered space. Our competition is anything you might turn to for a good night’s rest, from pharmaceuticals to

exercise to aromatherapy,” said Todd Morgano, Marcus Thomas senior vice president and director of public relations. Marcus Thomas LLC is a $110 million integrated marketing communications agency with 120 employees and offices in Cleveland and Youngstown, Ohio. Clients include Nestlé, MTD Products Inc. (Yard-Man, Troy-Bilt, Yard Machines,Wolf-Garten and White Outdoor brands), Akron Children’s Hospital, Diebold, Quanex, Tarkett, Shearer’s, SIRVA, Suncore, Swagelok and the Ohio Lottery.

It’s 2012.

Albrecht Bäumer produces machines and fully integrated solutions. Since 1946. We are a family business. And we will remain one. Bäumer machines are known in 38 countries. The headquarters, together with our subsidiaries in the USA, China and Japan guarantee service and support at their best. Our machines are made in Germany. 280 employees. We are all responsible for this success. Every day. In order to extend our market leadership we rely on the experience of the past, whilst using the highest technology to produce the best quality products. It is now time to change. Time to create a

Bäumer of America Inc. P.O. Box 18, 425 Route 202 Towaco, NJ 07082, USA Phone: +1 973 263 1569 Fax: +1 973 299 8587 Internet: e-mail:

new brand. Be surprised :: March issue

January 2012 BedTimes

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Calendar | January Jan. 22-25 Interiors U.K. National Exhibition Centre Birmingham, England Phone 44-121-780-4141

| APRIL April 21-26 High Point Market International Home Furnishings Center & other locations High Point, N.C., U.S. Phone 336-869-1000

Jan. 30-Feb. 3 Las Vegas Market World Market Center Las Vegas Phone 888-416-8600

April 24-27 Interzum Moscow/ Interkomplekt VVC All-Russian Exhibition Centre Moscow Phone 49-221-821-2932

Jan. 31-Feb. 4 Istanbul Furniture Fair Istanbul Expo Center Istanbul, Turkey Phone 90-212-291-83-10 | FEBRUARY Feb. 1-3 Australian International Furniture Fair Sydney Exhibition Centre Sydney, Australia Feb. 16-18 Tupelo Furniture Market Mississippi Complex Tupelo, Miss., U.S. Phone 662-842-4442 | MARCH March 9-12 International Furniture Fair Singapore/ASEAN Furniture Show Singapore Expo Singapore Phone 65-6569-6988

March 14-17 ➤ ISPA EXPO 2012 Indiana Convention Center Indianapolis, U.S. Phone 703-683-8371 March 27-30 Interzum Guangzhou China/China International Furniture Fair China Import & Export Fair Complex Pazhou Guangzhou, China Phone 86-20-8755-2468

| July July 30-Aug. 3 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 | September Sept. 25-26 Bed Show 2012 International Center Telford, England Phone 44-845-055-6406 or 44-175-679-9950

Top Istanbul Furniture Fair Jan. 31-Feb. 4 in Istanbul, Turkey Middle High Point Market April 21-26 in High Point, N.C. Photo courtesy N.C. Division of Tourism, Film and Sports Development

Bottom Las Vegas Market Jan. 30-Feb. 3 in Las Vegas

January 2012 BedTimes

81 |

a d v e r t i s e r s A. Lava & Son Co. Steve Appelbaum 800-777-5282 (800-777-LAVA)


AFT Corp. Rick Brumfield 800-631-1930


American & Efird Inc. Mark Hatton 704-951-2516


Atlanta C2-1, 57 Attachment Co. Inc. Hank Little 770-963-7369 Albrecht Bäumer 79 GmbH & Co. KG Nina Patisson—Germany 49-2734-289-215 Baumer of America Philipp Schuster—U.S. 973-263-1569 www.baumerof Bloomingburg Spring & 83 Wire Form Co. Inc. Vickie Schwarm 740-437-7614 www.bloomingburg BLR Martin Leroux 819-877-2092 Boyçelik Metal AS Erol Boydak 90-532-274-3193



Boyteks Tekstil AS 26-27 Deniz Boydak 90-352-322-0588



BedTimes January 2012

BRK Group Jeff Miller 562-949-4394


Buhler Quality Yarns 59 Corp. Victor Almeida 706-367-9834 CTL (Chicago Tape & Label) Kristy Enger 262-473-0323


Creative Ticking Jerry Pratt 704-964-0800


CT Nassau Tape- Ticking LLC Taber Wood 800-397-0090


Deslee Textiles NV 22 Erik Delaby 864-472-2180

Edgewater Machine Co. Inc. Roy Schlegel 718-539-8200 www.edgewater


Enriquez Materials & Quilting Inc. Silvia Enriquez 323-725-4955 www.enriquez


Ergomotion Katie Cauzillo 805-688-3151


Flex-A-Bed Inc. Ben Groce 800-421-2277


Flexible Foam 21 Products Inc. Mike Crowell 419-647-4191

Hickory Springs 2 Mfg. Co. Rick Anthony 828-328-2201 Innofa USA Todd Hilliard 336-687-1006


Integrity Software 50 Solutions Bill Seres 604-897-8713 John Marshall & Co. Ltd. 80 Peter Crone 64-3-341-2004 Jomel Industries Inc. 67 Phil Iuliano 973-282-0300, Ext. 106 Kenn Spinrad Inc. Randy Weinstock 800-373-0944


Diamond Needle Corp. 84 Abe Silberstein 800-221-5818

Foshan Ruixin 48 Nonwoven Co. Ltd. (Rayson Global) Himy Lee 86-757-85806388

Duroflex International 84 George Mathew 415-990-4343

Global Systems Group C3 Russ Bowman 954-846-0300

Latex Systems Co. Ltd. 76 Kitti Charoenpornpanichkul 66-2-326-0886, Ext. 204

EC Retail Studio Marty Walker 770-690-0023


Gommagomma 8 Isabella Mariani 39-02-965100

Leigh Fibers Inc. Parris Hicks-Chernez 864-949-5615

Eclipse International 11 Stuart Carlitz 800-634-8434 www.eastmanhouse

Hengchang Machinery 49 Factory Ren Ying 86-769-8330-7931

Maxime Knitting Mills Inc. 18 Lorne Romoff 514-336-0445, Ext. 127 514-265-8782

Latex International 13 Tom Eisenberg 203-924-0700, Ext. 341


a d v e r t i s e r s Midwest Quality 20 Bedding Inc. David Pritchett 855-586-4252, Ext. 15 Monchis SA de CV Ramon Zablah 818-336-1736


MPT Group Ltd. 38-39 Andrew Trickett 44-1706-878-558 New England Needles Inc. Tom Lees 800-243-3158 www.newengland



Simalfa Darren Gilmore 973-423-9266

Pacific Spring Inc. Victor Nguyen 626-272-8882


Starsprings International 72 Kai Christensen 46-513-17800

Vintex Inc. Customer Service 800-846-8399

Therapedic International 73 Gerry Borreggine 800-314-4433

Wright of Thomasville 74 Area Account Executive 800-678-9019

P.T. RubberFoam 17 Indonesia Andreas Janssen 62-21-53662190 SABA North America LLC 4 Jim Turner 810-824-4964 www.saba


Vertex Fasteners Inc. 43 Tom Fowler 847-768-6139

Orsa Foam S.p.A. Monica Rossi 033-160-9111


Tietex International Ltd. C4 Wade Wallace 800-843-8390

January 2012 BedTimes

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NEEDLE QUILTERS, long-arm label machines, sergers, etc. Contact Victor LeBron, American Plant and Equipment. Phone 864-574-0404; Fax 864-576-7204; Cell 864-590-1700; Email; Web


MACHINES. Specializing in PATHE precision parts and service. Technical consultants. SEDCO. Phone 201-567-7141; Fax 201-567-5515.


SEWING MACHINES. Contact Frank Carlino, U.S. Mattress Machinery. Phone 815-795-6942; Fax 815-795-2178; Email


Only 24 hours running time. Like new. $12,500. Phone 731-285-2991 or 731-676-3266.

n EMCO 8413 QUILTER. Good condition; runs great. Used

in light production at custom mattress shop. Can email pictures. Contact Steve Ellis in Temple, Texas.  Phone 254-743-8192; Email


DG2100 ($12,900), DG5500 ($5,900), DG1200 computerized ($18,900), GI4300 tack-and-jump capable ($45,000), DG3200 computerized ($35,000); EMCO 8413 ($3,000); tape-edge machines ($5,000); Spuhl, James Cash and Gribetz panel cutters from $2,500; WBSCO and Gribetz wrappers from $7,000; Spuhl unbalers from $2,500. Second location: 3 computerized quilters—DG2100 and panel cutter, DG5500 tack-and-jump, EMCO 88-1-3-6 computerized. Email

Employment Opportunity n Sales Manager and Sales Reps. Growing 42-year-old

major bedding company for Southeast and mid-Southwest territories. Send resume to P.O. Box 2460, Verona, MS 38879.

For information and rates on classified advertising contact, Debbie Robbins, advertising production manager. Phone 571-482-5443; Fax 703-683-4503; Email



BedTimes January 2012

IS PRODUCT SAFETY YOUR RESPONSIBILITY? Earn your Certificate in Product Safety Analysis!

Join ISPA and the Center for Supply Chain Management Studies at Saint Louis University for its first ever Certificate in Product Safety Analysis program! This is the first of a series of courses planned for the mattress and interior furnishings business.

Who should attend? • • • • • • •

Quality Assurance Directors / Managers Quality / System Managers Product Testing Managers Quality Specialists Safety / Environmental Directors and Managers Loss Control Engineer Corporate Risk Managers

• • • • • •

Product Design Engineers Product Safety Managers / Supervisors Product Liability Managers Import Compliance Managers Technical Directors Human Factors Analysts

February 21-22, 2012 St. Louis University’s John Cook School of Business St. Louis, MO

Tuition is $1,250 For more information, contact ISPA at Or ADK Information Services, LLC at 314-361-4464 or


Space is limited

ISPA...The Voice of the Mattress Industry

ISPA Membership your investment in the growth, profitability, and health of your business and the mattress industry!


ISPA remains committed to our industry and stands behind you with programs, services, and recources that help your business thrive! Stop by our Oasis Lounge at Las Vegas Market - B-910 - to relax, recharge, and learn more about current initiatives, programs, and plans for 2012. Visitors will be entered to win a gift card!

See you in Vegas! B-910

On Sleep n


According to Australia’s National Sleep Research Project: n The record for the longest period without sleep is 18 days, 21 hours and 40 minutes during a rocking-chair marathon. The record holder reported hallucinations, paranoia, blurred vision and slurred speech, as well as lapses in memory and concentration. n Parents of newborns typically lose between 400 and 750 hours of sleep during the baby’s first year. n As little as 17 hours of sustained wakefulness leads to a decrease in performance equivalent to a blood alcohol level of 0.05%. n Dreams that occur during REM sleep are characterized by bizarre plots, but non-REM dreams are repetitive and thoughtlike.

NIH launches sleep research plan


uilding on scientific advances that link sleep problems to health and safety risks, the National Institutes of Health recently released the 2011 NIH Sleep Disorders Research Plan, which identifies research opportunities to spur new approaches to the prevention and treatment of sleep disorders. The research initiatives include examining the connection between sleep and a person’s body clock or circadian rhythms, studying the effects of genetic and environmental factors that could influence a person’s sleep and conducting more trials to improve treatments for sleep disorders. The plan also charts new courses for collaborative research opportunities. Recent advances and findings in sleep research provide the foundation

for new research and the development of improved treatments. “There is a significant opportunity to

inform public health research, given the prevalence of sleep and circadian problems nationwide,” says Michael

J. Twery, director of the National Center on Sleep Disorders Research, a branch of the NIH’s National Heart, Lung and Blood Institute. “The goals outlined in the plan will help

bring attention to important questions that still remain about the effects of sleep and circadian disturbances, as well as the appropriate therapeutic approaches for them.”

The ‘ABCC9’ of sleep L

egend has it that Napoleon and Leonardo da Vinci never needed more than a few hours of sleep. Today, Bill Clinton and Martha Stewart brag about getting by without much shut-eye. Others don’t feel fully rested unless they get 10 hours between the sheets. Clearly, the amount of sleep each person needs varies widely, suggesting sleep duration is influenced by many factors. Now scientists have a better understanding of what those factors are and how much sleep each person needs. A collaborative study led by two biologists at the Ludwig Maximalians University of Munich, Germany, have identified a gene—called ABCC9—that regulates how long we sleep. More than 4,000 people from seven European countries took part in the study and filled out a questionnaire about their sleep habits. Scientists scanned the genomes of the volunteers and searched for variations that matched the descriptions participants gave of their sleep patterns. People who had two copies of one variant of the gene ABCC9 generally slept for a significantly shorter period in an undisturbed environment than did those with two copies of the other version. The findings were reported in the Nov. 22 issue of the journal Molecular Psychiatry.

January 2012 BedTimes

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On Sleep

Survey: Detroit drowsy, residents of California cities sleeping easier Tweets track impact of work, sleep on moods


esearchers at Cornell University in Ithaca, N.Y., looked to Twitter to confirm that work, sleep and the amount of daylight we get really do impact factors like our enthusiasm, alertness, distress and anger. They found that people tweet more positive messages early in the morning and again around midnight, suggesting that they aren’t particularly happy while working. Weekends saw more positive tweets, with positive-message peaks about two hours later than those recorded during the week, likely because people stay out later and sleep in. Tweets among people in locations with a lot of daylight during the summer and very little in the winter also reflected changing moods. The research team tracked 2.4 million people in 84 countries for two years, using a text analysis program to quantify the emotional content of 509 million tweets. Their results, in the paper “Diurnal and Seasonal Mood Tracks Work, Sleep and Day Length Across Diverse Cultures,” were published Sept. 29 in Science.


new ranking conducted for major retailer Sleepy’s shows that many of the U.S. cities most in need of extra zzz’s are east of the Mississippi in areas hard hit by the recession. The sleepiest cities: 1. Detroit 2. Birmingham, Ala. 3. Oklahoma City 4. New Orleans 5. New York

6. Cincinnati 7. Louisville, Ky. 8. Raleigh, N.C. 9. Columbus, Ohio 10. Boston Even though California is among the states hardest hit by the housing crisis, residents of the Golden State sleep remarkably well, the survey reveals. Here’s the list of the five most well-rested cit-

ies in the country: 1. San Diego 2. Dallas 3. Richmond, Va. 4. San Jose, Calif. 5. San Francisco The lists are based on an analysis of sleep habits of 350,000 adults across the country. They are part of an annual study compiled by the U.S. Centers for Disease Control and Prevention.

Beware of bedtime snacks What you eat and drink before bed can be the difference between a night of restful sleep and one spent tossing and turning. “Combating insomnia through nutrition is about eating the right combination of foods in the evening, and—perhaps even more important—knowing what foods to avoid,” says Joy Bauer, resident nutrition expert for NBC’s “The Today Show.” Foods and drinks to avoid before bedtime include: ■ Caffeine (sodas, tea, coffee, chocolate, etc.) ■ Alcoholic beverages ■ Large meals or bedtime snacks ■ Any liquid 90 minutes before you go to bed.



BedTimes January 2012

When you look back on it all, they’re the ones that make you love this game. They’re the ones that took it to a new level. To get game-changing results, you need experience you can count on, innovative creativity, and gutsy decision-making. When you look back at it all, what will you see in yourself? Did you adapt when old methods no longer worked? Did you try harder when others had given up? Did you utilize new tools and technology?

What did you do to get ahead of the game?

Need a new game plan? Check out the Gribetz V16™ – the world’s fastest quilter!


See the full line-up of game-changing equipment from Global Systems Group at ISPA EXPO Booth 2433, March 13-17.


Finally there’s some good news about america’s borders.

Good news gives us all a lift. Our border program continues to make leaps and strides. Now we’ve added the exceptional look and feel once reserved for upholstered furniture and panel systems. But that’s not all. We accept minimum orders and narrow widths. In custom colors. In cool designs. In a flash. You can understand why we get a little fired up now and then.



ECO Fa B R I C S ,








P O LY E S T E R S ,



ST I TC h B O N d S ,

Wa R P k N I T S ,


Tietex International Ltd., 3010 North Blackstock Rd., Spartanburg, SC 29301, Ph. 864.574.0500, Fax 864.574.9490,

BedTimes January 2012  

The business journal for the sleep products industry

BedTimes January 2012  

The business journal for the sleep products industry