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BedTimes SEPTEMBER 2009

THE BUSINESS JOURNAL FOR THE SLEEP PRODUCTS INDUSTRY

Sleep & wellness

How to help consumers make the connection

Get ready for Industry Conference New insights into ‘green’ consumers Survey: U.S. manufacturing key to economy


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Vertical Stitch Machine 12 Standard Stitch Profiles

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Website:

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Sudden Serviceâ„¢ Company

This equipment is protected by one or more of the following patents: US patents: 4,280,421; 4,432,294; 4,466,367; 4,644,883; 5,134,947; 5,159,889; 5,203,270; 5,522,332; 5,524,563; 5,562,060; 5,634,418; 5,647,293; 5,657,711; 5,743,202; 5,865,135; 5,899,159; 5,915,319; 5,918,560; 5,979,345; 6,035,794; 6,055,921; 6,202,579; 6,279,869; 6,295,481; 6,494,255; 6,802,271; 6,574,815 B2; 6,834,603 B1; 6,968,794 B1 Foreign patents: 9-520,472; 0,537,323; 92,905,522.6; 96,936,922.2; 2,076,379; 2,084,055. Other U.S. and Foreign Patents Pending. Copyright 2009 Atlanta Attachment Co. 09055060809

Atlanta Attachment Company 362 Industrial Park Drive Lawrenceville, GA 30046  r'"9  


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IT’S WHAT’S INSIDE THAT COUNTS

Profiles Non-wovens Latex Foam Foam Products PowerStack Wire Foundations InnerRest Fabric-Encased Coil Units InnerACT Alternating Coil Innerspring Edge Guards Bonnell and Offset Innersprings Bed Frames Memory Foam Toppers Memory Foam Pillows Quilting Foam Rolls

Tradition. Innovation. Performance. W O R L D W I D E

PO Box 819 • Hickory, NC 28603 • (828) 328-2201 www.hickorysprings.com


SEPT 2009

InSide Features

18 A good night’s sleep = a healthier you

Research increasingly shows the important connections between sleep, a new mattress and well-being. We look at how the mattress industry is spreading that message to consumers.

30 The ‘greening’ of consumers

A new survey shows that when it comes to purchasing “green” products, consumers’ opinions and shopping habits are continually evolving.

Departments

7 Front Matter

Americans see manufacturing as vital to the nation’s economic prosperity, but don’t see themselves or their children working in the sector, according to a new survey.

8 Company Profile

Family-owned regional producer White Dove Mattress is counting on strategic expansion, diversification, cost control and a new licensing deal with Comfort Solutions for future success.

39 Industry Conference

43 Industry News 56 ISPA News 57 ISPA Advocacy 59 Leadership Lessons 60 Classifieds 62 Advertisers Index 63 Calendar 64 The Last Word

The annual International Sleep Products Association’s Industry Conference and Exhibition is Nov. 4-6 in Bonita Springs, Fla. BedTimes gives you the program’s highlights and the information you need to plan your trip.

5 Editor’s Note 13 Cost Management www.sleepproducts.org/bedtimes

BedTimes | September 2009 |

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Know the score When you use SABA water-based adhesives,

you can make sure the savings beat expenses with every unit

SABA’s adhesive monitoring system allows you to take control & track usage Make sure that every mattress you produce is a winner. SABA’s monitoring technology ensures sustainability and control over your adhesive application. In these challenging economic times, this technology allows you to track real time adhesive consumption, along with production counts, so you always know the exact cost of the adhesive on a per unit basis. Join our winning, cost-effective team. Hit a grand slam of savings when you use SABA. The SABA Adhesive Monitoring System is simple and provides management with instant access to adhesive cost data via a secure web-based software application. Working in conjunction with our delivery system, the amount of adhesive being consumed is captured by the system’s on-board computer, and production data is entered by plant personnel. The system makes all the calculations and now you finally have control over your adhesive applications.

See for yourself first hand how the SABA foam bonding adhesive system can save you money!     

Enjoy 20 to 50% reduction in adhesive costs All application equipment provided at no cost to you Highest performing water-based adhesive Cleaner and safer working environment Monitor and control adhesive usage

Contact SABA today for a risk-free 30 day testing period.

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SABA North America LLC 5426 Lapeer Road Kimball MI 48074 USA

SABA, dedicated to foam bonding Est. 1933: 75 years of strong bonds


EDITOR IN CHIEF Julie A. Palm 336-727-1889 jpalm@sleepproducts.org SENIOR WRITER Barbara T. Nelles 336-856-8973 bnelles@sleepproducts.org CONTRIBUTORS J. Tol Broome Jr. Richard G. Ensman Jr. Patricia Fripp Dorothy Whitcomb Larry Wilson ART DIRECTOR Stephanie Belcher 336-201-7475 stephanie@jimmydog.com Vice President of Sales Kerri Bellias 336-945-0265 kbellias@sleepproducts.org Ad Production & CIRCULATION manager Debbie Robbins 336-342-4217 drobbins@sleepproducts.org COPY EDITOR Margaret Talley-Seijn BedTimes deadlines Editorial deadlines for the Industry News and Newsmakers sections of the November issue of BedTimes are Thursday, Oct 1. Volume 137 Number 9 BedTimes (ISSN 0893-5556) is published monthly by the International Sleep Products Association. Periodicals postage paid at Alexandria, Va., and additional mailing offices. Editorial and advertising offices 126 Parkview Lane, Reidsville, NC 27320 Phone 703-683-8371; Fax 703-683-4503 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 © 2009 by the International Sleep Products Association. Reprint permission obtainable through BedTimes.

www.sleepproducts.org/bedtimes

Editor’sNote Mattress-sleep-wellness: Industry must tout links

O

ne thing I’ve found interesting since joining the bedding industry several years ago is the whispered confessions people make to me about their mattresses. When acquaintances learn what I do for a living, many become sheepish, confessing—and confessing is the right word—that they desperately need to buy a new bed. Sometimes their current mattress is a hand-me-down of indeterminable age. Or maybe they bought it when they got married—three kids, two houses and 20 years ago. What’s even more interesting is what happens when those people finally do purchase a new mattress. They become evangelical, true believers. After just a few nights of sleeping on their new bed, their shoulders and hips don’t ache anymore. Their backs feel better. They aren’t so tired in the morning. “I love my new mattress,” they’ll say. “I wish I’d bought it sooner.” People who have recently bought a new bed understand the mattresssleep-health connection. They feel the difference in their bodies almost immediately. What if all those same people also knew that a new mattress and the improved sleep it will provide have been linked to weight loss, reduced blood pressure, a lower risk of diabetes and myriad other health benefits? Maybe they wouldn’t have waited so long to head to the sleep shop. As our “Sleep & Wellness” cover story (see Page 18) lays out, there is a growing body of research that supports what should be the mattress industry’s core message: A good

mattress will help you sleep better— and that will improve your physical and mental well-being. Some in our industry—mattress manufacturers, suppliers and retailers—are doing a great job sharing the information with consumers. Others emphasize only the connection between a mattress and better sleep, missing the important link to health. Read the story and think about your own company’s efforts. How could you better craft your marketing strategy? What more could you be doing? Science is handing us all the research we need. We just have to spread the word. Change of address As of Sept. 1, the mailing address for the editorial and advertising offices of BedTimes has changed to 126 Parkview Lane, Reidsville, NC 27320. If you are sending us photographs, news releases, product samples, advertising materials or similar items, you should send them to that address. Remember, however, that we prefer to receive editorial and ad materials via email whenever possible. BT

Julie A. Palm BedTimes | September 2009 |

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Innovation resurfaces Since 1905, Eclipse® International has set the bar for technologies that truly improve sleep quality, reduce back and neck pain, and virtually eliminate stiffness.* Clinical studies has proved it, our patents protect it, and the innovative features help our sleep products sell themselves. We are proud to introduce the latest evolution of Spinal Zone® Sleep Technology - a patent-pending development that extends our proven lumbar support into the outer quilting - producing unsurpassed, fulldepth support from the innerspring to the top of the mattress.

QUILTING

Patent-pending Shading for emphasis only.

Join the world’s fastest growing bedding group today! Craftsman Quality | Affordable Value | Patented Features | Limited Distribution * Research results were documented in two separate scientific studies conducted by the Director of the Exercise Physiology and Human Performance Laboratory of West Virginia University.

A World of Sleep Since 1905

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FrontMatter Manufacturing ranked No. 1 for prosperity But survey shows negative view about career opportunities

D

espite several years of discouraging news and business conditions for manufacturers across industries, Americans believe manufacturing is the most important sector for a strong national economy, according to a new annual index from Deloitte LLP and The Manufacturing Institute. The survey, “Public Viewpoint on Manufacturing,” assesses public opinion and understanding of a wide range of issues related to manufacturing. More than 70% of respondents said manufacturing is a national priority and 59% agreed that the U.S. manufacturing sector effectively competes globally. These results are in line with perceptions that manufacturing plays a larger role in overall economic prosperity than the technology, energy, health care, retail, communications and financial services sectors. “The public’s ranking of manufacturing as the top industry of importance to our economy, as well as its belief that U.S. manufacturers can compete globally, is very telling,” says Craig Giffi, vice chairman of Deloitte LLP, a global consulting, risk management, audit, tax and financial advisory firm. “Americans clearly still believe that manufacturing remains the backbone of the economy.” Most respondents to the survey also agreed that U.S. manufacturers have a significant impact on their standard of living (81%) and on national security (68%). When asked what sector they would most want to have create 1,000 jobs in their community, respondents listed manufacturing as their top choice, followed by technology, energy, health care, retail, communications and financial services. Though Americans have positive views of manufacturing’s contributions www.sleepproducts.org/bedtimes

to the country’s economy, they are less enthusiastic about pursuing a career in manufacturing. Only 17% of respondents named manufacturing among the top two sectors in which they would choose to start a career. And just 30% of parents said they would encourage their children to pursue jobs in manufacturing. “These are jobs Americans want for

➤ About the survey The “Public Viewpoint on Manufacturing” survey, released by Deloitte LLP and The Manufacturing Institute, polled a nationally representative sample of 1,000 Americans across 50 states. Deloitte LLP is a consulting, risk management, audit, tax and financial advisory firm with offices worldwide. The Manufacturing Institute is an affiliate of the National Association of Manufacturers based in Washington, D.C. For more information, check www.deloitte.com/us.

their friends and neighbors, but not for themselves or their family members,” Giffi says. “America’s belief that manufacturing jobs are not clean, safe or interesting may have been accurate at one time, but it’s no longer the case.” “This survey sheds light on a massive disconnect we are facing in manufacturing,” says Emily DeRocco, president of The Manufacturing Institute, an affiliate of the National Association of Manufacturers based in Washington, D.C. “People have an outdated image of manufacturing and the career opportunities available. Cutting-edge technology has transformed manufacturing in ways that are hard to imagine if you haven’t visited a factory lately. Jobs now require postsecondary education, skills certification and credentials across a broad range of high-quality, middle-class career paths. The reality is that manufacturers offer high-paying jobs and rewarding careers for American working men and women. Our job is to close the gap between perception and reality, which will help fuel the industry’s growth and prosperity.” Respondents agreed with that conclusion. The majority (77%) believe the United States needs a more strategic approach to develop its manufacturing base and 74% said the United States should further invest in manufacturing industries. Finally, although Americans believe manufacturing is disadvantaged in the areas of corporate tax policies (46%), trade policies (45%) and general government business policies (45%), they are adamant about what gives U.S. manufacturers a competitive edge. Those factors include technology use and availability (77%), skilled workers (74%) and energy availability (72%) percent. BT

BedTimes | September 2009 |

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CompanyProfile White Dove banks on new strategies for success Producer has new deal with Comfort Solutions By Dorothy Whitcomb

S

ince taking the helm as president of White Dove Mattress in 1996, Bruce Goodman has worked to ensure that the business his family founded in 1922 remains a relevant source of quality bedding products in the Midwest and East Coast regions that it primarily serves. He and his management team have done that through strategic expansion, diversification and careful cost control. In the spring, the Cleveland-based company moved to both solidify its position and expand its reach by signing a licensing agreement with Willowbrook, Ill.-based Comfort Solutions, one of the industry’s top 10 producers. Goodman went to work for White Dove, which was founded by his greatgrandfather and grandfather, after spending 10 years managing an eightstore furniture chain that his family also owned. When the family decided to sell that business, Goodman went back to school to earn an MBA and consider his career options. He surprised his family—and him-

Midwestern roots White Dove Mattress is firmly rooted in Cleveland but serves retailers in Indiana, Kentucky, Ohio, West Virginia, western New York and western Pennsylvania—as well as national contract accounts. Pictured with Cleveland’s skyline behind them are (from left) Arlene Turocy, chief financial officer; Bruce Goodman, president; and Don Sohl, vice president of sales.

self—by deciding to join White Dove. “It was the right thing for me and for my dad (Henry Goodman). My dad was concerned about the next generation of leadership in the business and I wanted to own a business,” Goodman says. “Given my background, the idea of selling mattresses to retail businesses made a lot of sense.” Henry Goodman remains active in the company. Bruce Goodman’s uncle, Bob Kichler, serves as vice president.

Consolidated production White Dove Mattress manufactures all of its mattresses in a single, 150,000-square-foot facility in Cleveland. The plant’s staff includes (from left) Richard Wheatley, production manager; Richard Morando, operations manager; Karen Morchak, purchasing manager; and David Skaggs, production manager.

8 | BedTimes | September 2009

Recasting the company When taking over as president, Goodman moved quickly to redirect the business’ efforts. In 1996, he reorganized the company, then called H. Goodman Inc., and renamed it White Dove Mattress to reflect the only brand it produced at the time. The following year, the company expanded its product mix by becoming a licensee of Springwall Sleep Products, which has headquarters in Moncton, New Brunswick. After acquiring two of the company’s factories, White Dove moved the brand’s production into its own 150,000-square-foot facility. Springwall, with price points similar to White Dove, had the endorsement of the American Chiropractic Association and came with a dedicated retailer list. The acquisition, Goodman says, “grew the company quickly, tripling our volume in about a year.” Eventually, White Dove became Springwall’s largest U.S. producer. In 2004, Goodman’s team chose to move in a different direction and ended that licensing deal. After deciding to create its own brand from www.sleepproducts.org/bedtimes


scratch, White Dove began working with the International Chiropractors Association to design product. With that group’s endorsement, White Dove launched its SleepLogic brand in 2005. The line, which includes value, premium and ultrapremium collections, has more than lived up to expectations, Goodman says. “Our retailers believed that it would be a step forward for them, and SleepLogic has become a very important part of our consumer products program,” he says. White Dove has considered licensing SleepLogic but has put that idea on the back burner for now while the company puts its energies into other efforts. “We decided against it because of the low return on investment for our time and the challenges involved,” Goodman says. “We felt that it was better to focus on building the brand ourselves.” Products sold at retail account for close to 80% of the privately held company’s total sales, which Goodman says fall between $15 million and $20 million annually. Although sales of innerspring models make up the bulk of mattress sales, latex and memory foam are important, representing 15% to 20% of retail sales. White Dove also produces some air mattresses and adjustable beds. “Our sense is that the Nature’s Legacy brand (which includes latex and memory foam mattresses) will grow somewhat faster than our innerspring products,” Goodman says. “We got into this category early and believe that it’s one of the best ways to make a mattress. We have some pretty sizable customers where 25% to 30% of their total volume with us is latex.” White Dove’s contract division supplies motels and hotels. Goodman notes that the company’s ratio of contract sales to total sales is higher than many producers. The company’s contract accounts include large chains such Red Roof Inn and Motel 6. “Even though we’re a single facwww.sleepproducts.org/bedtimes

Family business White Dove Mattress was founded in 1922 by the Goodman family and is being run by the fourth generation.

tory, we are able to compete on a regional and national basis and have enjoyed significant growth in this category,” Goodman says. New opportunities Goodman looks to the new licensing agreement White Dove signed with Comfort Solutions in the spring to propel future growth. Indeed, when he factors in the potential for increased sales that derive from the deal, Goodman estimates his business could grow by 50% to 60% during the next three to four years. “This is a major step for us,” he says. “We felt it was a unique opportunity to join forces with what, we believe, is the most aggressive, well-positioned licensing brand in the country. This is a win-win situation. They needed a strong licensee in the Midwest and we thought they were doing a lot of great things that would create opportunities.” The license covers Indiana, Kentucky, Ohio, West Virginia, western New York and western Pennsylvania—the states and regions where White Dove currently sells its own brands. “This is a tremendous complement to what we already do,” Goodman says. “In addition to our current products and programs, we now have more great products and brands, as well as access to new customers.” Goodman also believes that the partnership will provide an important platform for expanding White Dove’s presence nationally. “The only way to participate in national (retail) programs is to be part

of a group of factories or to build your own,” he explains. Staying nimble Goodman sees the decision to sign on with Comfort Solutions as an extension of practices the company has created over 87 years. In an industry that has been losing independent regional producers, White Dove has remained viable by striking out in new directions. “We’ve been able to remain a meaningful part of the industry because we build top-quality products and compete head-to-head, store-by-store against the major brands,” Goodman says. “We have a very strong sales staff and we don’t sell product at prices. We sell programs, support and our ability to help a retailer be successful in the mattress business.” Cost-cutting efforts spurred by the recession have helped to put White Dove in a position to comfortably pursue new ventures. “We, like everyone else, became quite concerned about overall economic trends and sales trends in the industry and made what we thought were very realistic decisions about 2009 sales,” Goodman says. That analysis, he says, prompted some layoffs and a “thorough scouring of every expense in our company.” Although Goodman would have preferred to have not faced the challenges of a global economic downturn, he recognizes the benefits of his management team’s efforts: “It’s like pruning back a tree to make a better, stronger tree. We will be a better, stronger company as a result of it.” BT

BedTimes | September 2009 |

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p48 lenzing.qxd

8/7/09

3:08 PM

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ADVERTORIAL A D V E R T O R I A L

COMPANY

SPOTLIGHT

An Untold Story NOT ONLY IS TENCEL® USER FRIENDLY AS A NATURAL FIBER, IT’S ALSO EARTH FRIENDLY

Above right and below: Lenzing Fiber’s headquarters are located in the resort village of Lenzing, Austria, which has been a tourist destination for centuries. Lenzing closely monitors its production to avoid compromising the area’s eco-system. The company is equally committed to ecologically responsible practices at all of its production sites.

As a appeared in LDB Interior Textiles.

A

s an established name in the market, TENCEL®’s qualities – soft feel, cool and sensual touch, easy care, and moisture management – are well known. Less well known is its producer Lenzing Fiber’s unique, multidimensional, environmentally friendly commitment. Its factory in Lenzing, Austria, is in a pristine, picturesque village on a lake at the base of the Alps. It has been a vacation resort for European rulers for centuries, and remains a premier resort area in Austria today. Lenzing has always been conscious of its impact on the environment and the local tourist economy. The company’s closed-loop production process recycles waste streams and recovers aqueous byproduct, achieving 99% recovery of all emissions. The company manages its water overflow temperatures to within 2o C of the river Ager (which is fed by the lake ) to

lessen the impact on the surrounding ecosystem. By-products of the manufacturing process provide energy for the plant and surrounding community as well as the wood sugar xylose that is converted into Xylitol sweetener for sugarfree candy. TENCEL® itself is all-natural and biodegradable. The raw material comes from responsibly managed forests that have been independently certified by the Soil Association on behalf of the Forest Stewardship Council. By using FSC-certified wood, Lenzing is supporting environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. The raw material for TENCEL® is extracted from eucalyptus wood pulp, a sustainable resource. Eucalyptus trees are felled to their root balls and regrow without replanting. Unlike cotton, hemp, and other fibers touted as ‘organic,’ no pesticides, herbicides, defoliants, or fertilizers are used. With a natural defense mechanism against insect infestations, no pesticides that would leach unchecked into waterways are needed. No irrigation is necessary, which conserves precious water resources. TENCEL® is produced in Mobile, AL; Grimsby, UK; and Heiligenkreuz, Austria. The production process for TENCEL®, the revolutionary lyocell technology, was designed with the

environment in mind and has received numerous awards. Among these is the “European Award for the Environment” of the European Union, recognizing, apart from social criteria, the company’s closed loop production cycle. Lenzing has been widely applauded for its earth-friendly policies. It is again the only fiber manufacturer to receive the “European Flower Award” for setting new standards in the field of sustainability, and the use of ecological technologies. Lenzing has also been given the “European Award for the Environment.” The “Textiles Vertrauen” award acknowledges that no toxic substances are used. This makes TENCEL® suitable for infant products, a fact affirmed by OKOTex Standard 100 Certification. Consumers worldwide are taking notice of organic and sustainable fibers such as Lenzing TENCEL® Fiber. LOHAS (Lifestyles of Health and Sustainability) describes a $228.9 billion US marketplace for goods and services focused on health, the environment, social justice, personal development, and sustainable living. Lenzing Fibers is committed to a forward-looking environmental policy, which encompasses the responsible, provident, and careful use of all resources as a central feature of its commitment to sustainability. It’s a story well worth telling. �


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With TENCEL® fibers you can feel it right away that they come from Nature since botanic principles are applied throughout the complete manufacturing process. The water management of plants, closed circuits and sustainability are all important functions from Nature on which the TENCEL® production process is based. Thanks to its natural intelligent properties the fiber guarantees an optimum night’s sleep. Perfect moisture management, skin friendliness and an in-built feeling of freshness ensure a pleasant climate for sleeping. The naturalness accompanies you throughout the night.

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World Leader in Cellulose Fiber Technology


mposite


CostManagement Could an SBA loan help your business? Express Loan application involves less paperwork than a home mortgage loan and can be processed in about 36 hours. In addition to making banks more willing to lend money, an SBA Express Loan offers three other advantages. First, banks are often willing to extend credit on longer terms and with lower monthly payments. Second, banks can offer a more flexible loan structure regarding collateral. Third, the SBA places restrictions on maximum pricing and fee levels, so borrowing costs are reasonable.

Express program could provide up to $350,000 By J. Tol Broome Jr.

O

ne of the many bits of common wisdom floating around during the current recession is that banks have stopped lending money. While there have been problems with the willingness of banks to lend money to each other, the flow of credit to small businesses has generally remained intact. With that said, some banks have become more conservative in their underwriting standards and fewer businesses are creditworthy enough to qualify for conventional loans. That’s where the Small Business Administration comes in. The SBA helps facilitate the flow of credit to small businesses and, since 2002, it has offered the SBA Express Loan program, which provides more than 100,000 loans a year. Originally, the maximum loan amount was $250,000; that was recently increased to $350,000. The SBA works differently than a bank. It doesn’t extend credit directly to small businesses, but rather provides a guaranty to the lender. This frees up far more dollars at the government level to www.sleepproducts.org/bedtimes

back the guaranty program with SBA funds deployed only at default. This allows more borrowers to qualify for credit and banks to make more profitable loans. How can you take advantage of this loan program? Here are answers to key questions.

1

Why seek an SBA Express Loan? You might have had a bad experience with the SBA or know someone who did. At one time, applying for an SBA loan required a mound of paperwork, a pint of blood and a pledge of your first-born child. (I’m making those last two up but it certainly felt like you were being asked for both). That’s not the case anymore. The typical

➤ More information For more information about the Small Business Administration and its Express Loan program, check www.sba.gov or call 800-827-5722.

2

How do I apply? You apply with a bank for the loan and the bank, in turn, obtains the guaranty from the government agency. As explained on the SBA Web site (www.sba.gov): “The lender decides if they will make the loan internally or if the application has some weaknesses, which, in their opinion, will require an SBA guaranty if the loan is to be made.” This means that the SBA cannot compel a bank to extend credit even with the guaranty. There is no process for a small business owner to go directly to the SBA for the guaranty or for a direct loan. The SBA reports that most U.S. banks do participate in its guaranteed loan program, but many don’t. It’s important for you to find a bank that has considerable experience dealing with the SBA. Most of the large national and regional banks have SBA departments; many community banks also use the SBA Express Loan program extensively. If you have an established banking relationship, ask your loan officer if her bank has experience dealing with the SBA. If it does, then start with the bank you already know. If it doesn’t, look for a bank that has considerable experience with such loans. You can contact the SBA to find out which banks in your

BedTimes | September 2009 |

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CostManagement

area have SBA experience. Call 800-8275722 or email answerdesk@sba.gov.

3

What are the eligibility requirements? According to the SBA, the majority of U.S. businesses are eligible to apply with a bank for an SBA Express Loan. The SBA looks at four things to determine eligibility: ➤ The size of the business ➤ Whether the business is for-profit (it must be) ➤ Whether the business already has the internal resources—business or personal—to provide the financing (it can’t) ➤ If the business has the ability to repay the loan. The size standards vary by business type. For manufacturers and wholesalers, the size limit is based on the number of employees—no more than 500 for manufacturers and 100 for wholesalers. For retailers, the size restriction is based on maximum annual revenue of $6.5 million. While the “for-profit” eligibility requirement is self-explanatory, the third restriction is often up for interpretation. Simply put, you must prove a need for the financing. If you need to borrow $100,000 for a new piece of equipment and your business or your personal financial statement shows a minimum cash balance of $250,000, you probably won’t qualify for an SBA guaranty. Then again, you might not need one because your bank is likely to approve your loan on a stand-alone basis with no SBA guaranty. The fourth requirement regarding repayment ability will be covered in more detail later.

4

Are there restrictions on what the loan can be used for? SBA-guaranteed loans may be used for a startup or for an existing business. Specific approved uses include: ➤ Purchasing land or buildings and to cover new construction, as well as expansion or conversion of existing facilities ➤ Acquiring equipment, machin-

14 | BedTimes | September 2009

ery, furniture, fixtures, supplies or materials ➤ Providing long-term working capital, including the payment of accounts payable and the purchase of inventory ➤ Refinancing existing business debt that is not already structured with reasonable terms and conditions ➤ Providing short-term working capital for seasonal financing, contract performance, construction financing and export production, and for financing against existing inventory and receivables under special conditions ➤ Purchasing an existing business. While most of these are selfexplanatory, one requires significant interpretation—the refinancing of existing business debt. As stated previously, a small business may refinance existing bank debt only if the existing terms and conditions are not “reasonable.” What this means in practice is that the business must benefit significantly from any debt refinancing for it to be included in a new SBA Express Loan. For example, an existing loan originally used to purchase a truck priced at prime plus 2% with a four-year term remaining is not likely to be eligible to save a 0.5% point on the rate and extend the term another year. However, if you have a $50,000 working capital bullet note that is due for full repayment in three months and the new loan would extend repayment to five years, it likely is an acceptable use of proceeds.

5

What should the application include? Your banker will give you guidance on what to include in the loan application, but there are certain pieces of information that generally will be required. First, you should include a brief description of the business—its legal structure, location or locations, products and services offered, brief history, proposed future operation if it’s a startup or significant changes are proposed, competitive analysis, customer list and supplier list.

Second, you should include resumes for each owner and key members of your management team, as well as current (less than 90 days old) personal financial statements and tax returns for all principal owners and guarantors. Your package of information should include at least three years of year-end financial statements and/or tax returns for an existing business, plus a current interim statement (less than 45 days old) that includes a balance sheet, income statement and reconciliation of net worth. To reflect the use of proceeds you need to include a pro forma balance sheet that reflects sources and uses of equity and the loan. To prove repayment ability, your package needs to include a projection of future operations for at least one year. This should contain all sources of revenue, cost of goods sold, operating expenses, interest expense and income taxes. Key assumptions should be incorporated, as well.

6

What are the key underwriting factors? The primary focus of underwriting for both the bank and the SBA will be cash flow. You will need to show the ability to repay the loan after all expenses and working capital needs are met by your revenue sources. This can be a significant challenge in a recession. Even if your business currently is running in the red, you still might qualify for an SBA Express Loan. In order to do so, you will need to provide a realistic turnaround plan that demonstrates how you will return to positive cash flow. This plan could include an injection of equity, change in product mix, change in pricing, store closings, a reduction in operating expenses or a combination of steps. Equity also is an important underwriting focus. If you own an existing business, this will be measured by the total liabilities/net worth ratio with a target level of about 3-to-1. In other words, if your current total liabilities are $200,000 and you are looking to borrow $100,000 more, then your existing equity should be at least www.sleepproducts.org/bedtimes


CostManagement

$100,000. Another key consideration is collateral. In most cases, you will be required to pledge all of the existing and new business assets of the company that are not already pledged as collateral for other loans. You also may be required to pledge personal assets, such as a second or third deed on your residence or investment accounts. A final underwriting factor is personal guaranties. The SBA requires personal guaranties from all owners with a stake in your company of at least 20%. Others in key management positions may be required to personally guaranty the loan, as well.

7

How will the loan be structured and priced? The maximum guaranty level for an SBA Express Loan is 50% of the total loan amount. There is no

16 | BedTimes | September 2009

minimum loan amount. As mentioned, the ability to finance for longer terms with SBAguaranteed loans often makes a tremendous difference in the cash flow of a business. For example, a three-year, $50,000 working loan at 7% would result in a monthly payment of $1,544. The same $50,000 loan with the same rate would yield a monthly payment of $755 with a seven-year term. The loan pricing is negotiated between the borrower and the lender. The rates can be fixed or variable and must be tied to the prime rate. The maximum allowable rate is 6.5% over prime for loans of $50,000 or less and 4.5% over prime for loans more than $50,000. Additionally, there are fees charged for an SBA Express Loan. For loans of $150,000 or less, the SBA fee is 2%

of the guaranty amount; for loans more than $150,000, the guaranty fee is 3%. The bank usually passes these fees along to the borrower. There is a prohibition against points and fees for processing, origination and application. Some loans may include a prepayment penalty. It is always difficult to borrow money during a recession, but the SBA Express Loan program just might prove to be the difference between a “yes” and a “no” to help provide much needed capital for your business as you seek to weather the current economic storm. BT J. Tol Broome Jr. has spent 26 years working in commercial lending at various financial institutions. Currently he is executive vice president and chief commercial credit officer for BB&T.

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Sleep Wellness

Making the connection for consumers 18 | BedTimes | September 2009

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By Barbara T. Nelles

he subject of sleep has become something of a societal obsession. Sleep clinics, sleep doctors and sleep research are proliferating and it seems every month another sleep study makes headlines. Multiple research studies now link poor sleep to more frequent colds, high blood pressure and diabetes, among other health problems. Insufficient shut-eye also has been tied to obesity, which has reached epidemic proportions in the United States: About one-third of Americans are considered clinically obese, according to the National Center for Health Statistics, part of the Centers for Disease Control and Prevention. Conversely, more sleep can assist in weight loss and there are even sleep “diets” being touted by doctors and celebrities: Actress and singer Jennifer Lopez says her 10 hours of sleep a night help keep her thin and beautiful. In addition to physical health problems, the quantity and quality of sleep have been found to affect cognitive function and physical performance. For instance, a study at the Stanford University Sleep Disorders Clinic found that extra sleep provides a boost in athletic performance, while research out of the University of California San Diego School of Medicine revealed that getting more REM sleep improves creativity. “This growing and impressive body of sleep research is handing the industry—on a silver platter—the vital link between sleep and a constellation of quality-of-life issues,” says Pete Bils, director of clinical sleep research and vice president of sleep innovation at Select Comfort, an airbed manufacturer and retailer headquartered in Minneapolis. How is the mattress industry capitalizing on the interest in sleep and better health? BedTimes spoke with manufacturers and industry supwww.sleepproducts.org/bedtimes

pliers to uncover the extent of their health and wellness messaging. Selling well-being Some manufacturers emphasize health and wellness broadly; others focus on more specific aspects. Select Comfort formulated its “entire marketing process around selling quality sleep versus selling product—the end result of which is a great night’s sleep and improved quality of life,” Bils says. In addition to natural and organic bed sets, Natura World offers an extensive line of sleep accessories, including aromatherapy sprays, to help consumers create “a spa atmosphere” in the bedroom for better rest and relaxation, says Ralph Rossdeutscher, president of the Cambridge, Ontario-based mattress maker. “Better health is the reason we got into this business in the first place,” Rossdeutscher says. “And now we know that better sleep makes you happier, healthier and more beautiful.” Licensing group and producer Restonic, which operates through “virtual” offices in the United States, has uniquely positioned its HealthRest brand as providing “The Most Nutritious Sleep Around.” The line includes latex, memory foam and magnetic mattresses. In its marketing efforts, Serta concentrates on building its brand but does promote health and wellness messages, each crafted for a particular product line, says Andrew Gross, senior vice president of marketing for the Hoffman Estates, Ill.-based mattress maker. “For instance, Perfect Day by Serta is about energy, rejuvenation, and invigoration through the experience of better sleep,” he explains. BedTimes | September 2009 |

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A real benefit Mattress producers should tap into a ‘growing and impressive body of sleep research’ says Pete Bils of Select Comfort. The company emphasizes wellness in its store displays.

Eclipse, a licensing group and manufacturer based in North Brunswick, N.J., offers products with a variety of health promises. The tag line of its Conformatic brand promises well-being: “Improve the quality of your sleep, and the quality of your days.” “We’ve always told a health and wellness story through our products’ features and benefits,” says Gerry Borreggine, president of Therapedic Sleep Products, a Princeton, N.J.-based mattress licensing group. “And our name, itself, implies ‘therapy’ or ‘therapeutic’. ” Foam supplier Latex International offers the Rejuvenite pillow directly to retailers with a tag line that reads “Wake up to better days.” A new Rejuvenite Web site soon will promote “the pillow’s ability to help sleepers feel refreshed and energized throughout the entire day,” says Kevin Stein, vice president of mar-

keting and research and development at the Shelton, Conn.-based company. “Our focus is on better health,” says Rick Robinson, president of the Boston-based licensing group Spring Air International. “Making the connection between the mattress and wellness is something I’ve always believed in, ever since we created Nature’s Rest.” Some mattress marketing messages are more targeted to specific health problems. It’s been decades since the mattress industry first asked consumers to connect their aching back to their saggy, old mattress. It’s a connection that continues to resonate—and sell beds. Among the many “better for your back” collections are the Spring Air Back Supporter, Eclipse Spinal Zone, Sealy BackSaver, Comfort Solution’s King Koil Spine Support, Simmons BackCare and Therapedic BackSense. A groundbreaking 2006 Oklahoma State University study published in the Journal of Chiropractic Medicine found that a new mattress significantly reduces back discomfort, in addition to improving overall sleep comfort and quality. (See story in BedTimes, February 2007.) Some manufacturers also point to their own research to support their “healthy back” messages. When founded in the mid-1990s, Natura World targeted consumers suffering from back pain, Rossdeutscher says. It sponsored a study through the Canadian Memorial Chiropractic College, which found the company’s mattresses provided a “40% reduction in chronic lower back pain.” Eclipse’s patented Spinal Zone

technology has been available since the mid-1990s and is endorsed by the Congress of Chiropractic States Associations, says Stuart Carlitz, Eclipse president. A study conducted at West Virginia University’s Exercise Physiology Department found that Spinal Zone beds “reduced back pain and stiffness and increased sleep time.” Manufacturers use designated mattress lines to target other specific health problems, as well. For instance, Eclipse offers the patented Perfection Rest Allergy Free mattress, featuring an impermeable allergen barrier. Comfort Solutions’ eXtended Life XL collection is designed to provide better sleep for overweight and large-size sleepers, says Owen Shoemaker, senior vice president of products and marketing development at the Willowbrook, Ill.-based mattress maker and licensing group. (See sidebar on Page 28.) “The message is that if you have other health issues, you can still sleep better and feel better,” Shoemaker says. “And if we can graduate the overweight into a bed that allows better sleep, it’s a step in the right direction—because of the link between better sleep and weight loss.”

Point-of-purchase plan The Comfortaire brand uses a variety of sales sheets and marketing materials to convey its health and wellness message.

20 | BedTimes | September 2009

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Carpenter Co. offers the Ambient Total Body Renewal brand of pillows and mattress pads. Marketing copy for Ambient reads, “Imagine if there were a bedding product that would work with the body to increase its oxygen level. Imagine if it could help build strength, increase your energy and accelerate muscle recovery.” Carpenter is an industry supplier based in Richmond, Va., that also markets sleep accessories directly to retailers. Taking care of retailers Making sure that retail partners have the training and information they need to communicate a product’s health and wellness benefits to consumers is a timeintensive effort, manufacturers say. “Ongoing training and a good point-of-purchase package for retailers is very important,” says Jimmy Orders, president of mattress maker Park Place Corp., based in Greenville, S.C. Comfortaire, a Park Place company that produces airbeds, in particular, has a strong health and wellness emphasis both at its Web site (www.comfortaire.com) and in its marketing materials, Orders says. Latex International is constantly on the road, conducting more than 7,500

Back story One of the earliest health messages manufacturers like Therapedic Sleep Products delivered to consumers was that a supportive mattress can ease back pain.

retail training sessions each year, Stein says. Eclipse’s staff chiropractor, Dr. Jason Hagman, participates in retailers’ staff meetings and oversees their training sessions. Sleep and health were major themes of the Spring Alive retailer tour sponsored by Leggett & Platt in 2007, says Mark Quinn, group executive vice president of marketing for the Carthage, Mo.-based industry supplier. L&P also conducted consumer focus groups that explored the importance of sleep and shared these findings with retailers. The retailer tour included a consumer-ori-

ented Web site (www.leggettsleep.com), as well as brochures that address the benefits of a good night’s sleep—better heart health, weight loss, a more attractive appearance and increased libido. Carpenter also has a consumer-oriented Web site (www.sleepbetter.org) that promotes its consumer products and offers information on sleep and wellness. The company also reaches consumers with point-of-purchase materials for its retail top-of-bed products. Opportunities remain Despite all the news about the benefits of sleep to health, many consumers still need help connecting the dots between their sleep surface, better rest and improved well-being. “Consumers need better education,” says Eric Hinshaw, chief executive officer

Suppliers’ stories Industry suppliers such as Leggett & Platt (left) and Carpenter (above) are helping to explain to consumers the link between the mattress and a variety of health issues.

www.sleepproducts.org/bedtimes

BedTimes | September 2009 |

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of Sleep to Live/Kingsdown, a manufacturer and retailer based in Mebane, N.C. “We’re asking them to make some complex leaps in understanding—from the mattress to sleep to health. And if we really want consumers to believe in us, we must educate them not just on the importance of a new mattress, but on how their sleep environment and their behavior all play a role in better sleep.” “Mattresses have improved greatly,” says Alvaro Vaselli, senior vice president of Media, Pa.-based supplier FXI

(formerly Foamex). “There are specialty foams that increase comfort levels with moisture and heat dissipation and new technologies to help people sleep better and feel better. But I see lots of room for improvement in how the industry communicates with the general public about the benefits of a new mattress. Right now manufacturers of sleeping aids like Ambien are doing a much better job than us.” The Better Sleep Council, the consumer education arm of the Interna-

tional Sleep Products Association, helps to spread a unified industry message about mattresses, sleep and health. (See story on Page 24.) And, in 2008, ISPA began work on an industrywide marketing initiative that would ramp up those efforts with a national marketing and advertising campaign designed to focus on the connections between sleep, mattresses and wellness—and boost sales of mattresses overall. BT

Research supports, shapes messages To develop product and support their own sleep and wellness messages, mattress makers and industry suppliers have formed ongoing relationships with sleep research centers, as well as scientists at universities and hospitals. They also conduct inhouse research and sponsor outside studies related to sleep and wellness. Mattress producer and retailer Sleep to Live/Kingsdown, with headquarters in Mebane, N.C., operates the Sleep to Live Institute, a research facility with a fully equipped sleep research lab in Joplin, Mo. A central goal of the institute is to conduct large-scale research for publication in peer-reviewed medical journals, says Robert Oexman, vice president of strategic development and research. “We want to begin showing the medical community how the mattress and pillow impact sleep.” Oexman and others point to the fact that many physicians’ solution to a patient’s sleep complaint is to take out the prescription pad. “Getting knocked out is not sleeping better and drugs like Ambien and Lunesta are for short-term use only, yet some people stay on them forever,” Oexman says. Study findings help Sleep to Live develop new products and can be used to assist retailers in the selling process. Once published in peer-reviewed journals, research results can be taken directly to the consumer via public relations efforts, Oexman says. In addition to its involvement with the Foundation for Chiropractic Education and Research, licensing group and mattress maker Comfort Solutions sponsors ongoing research by Duncan Baine, a U.K. scientist with more than 20 years at University College London’s Institute of Orthopedics. Baine’s research focuses on pressure imaging and electronic scan systems and examines a variety of support materials, says Owen Shoemaker, senior vice president of products and marketing development at the Willowbrook, Ill.-based company. In March, Minneapolis-based manufacturer and retailer Select Comfort unveiled findings from a sleep study sponsored through Massachusetts General Hospital. Respondents sleeping on a new Sleep Number bed reported fewer

22 | BedTimes | September 2009

Sleep science Kingsdown’s Sleep to Live Institute carries out large-scale research that can be shared with the medical community and consumers.

body aches, better rest, fewer food cravings and improved feelings of well-being. The findings from that study and others are available directly to consumers via the company’s Web site (www.selectcomfort.com), through social media such as company blogs and Facebook, and at information kiosks in retail stores. Carpenter Co. is in the process of constructing a fullscale bedding lab at its technology center, says Ed Malechek, executive vice president of the Richmond, Va.-based supplier. The company also is adding sleep studies to its in-house research. Those will be conducted by sleep doctor, clinical psychologist and author Michael Breus. Currently, Breus works with Carpenter’s retail customers showing them how to better address sleep issues. “Ongoing clinical research at our technology centers allows us to listen and converse with consumers, develop the product pipeline and elevate the conversation about the importance of sleep,” says Dan Setlak, vice president of marketing and direct sales at Tempur-Pedic, a manufacturer and retailer with headquarterd in Lexington, Ky. Tempur-Pedic is a longtime supplier of mattresses and other medical devices to the health care industry for the prevention and relief of pressure ulcers. Results from long-term clinical research conducted at universities and hospitals are available at www.tempurpedicmedical.com.

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BSC reaches out to consumers

Multimedia approach benefits entire industry

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or three decades, the Better Sleep Council has worked to educate consumers about the relationship between better sleep and well-being and the important role the mattress plays in achieving a good night’s sleep. The BSC, formed by the International Sleep Products Association in 1979, fills a unique role in spreading the sleep-mattress-wellness message in a way that benefits the entire mattress industry. “The BSC is so important because we are largely an industry that doesn’t get to speak directly to its end-users,” says Jimmy Orders, BSC chairman and president of mattress maker Park Place Corp. in Greenville, S.C. “The BSC gives us the opportunity to speak to consumers in a unified voice with a proper message. And now we are welcoming our retail partners to join us in this important task through ISPA’s newly formed Mattress Retailer Council.” “The Better Sleep Council has been a shining star for our industry over the past 30 years, both in terms of advancing the importance of sleep and health and in helping consumers better appreciate how a new mattress can improve their quality of life,” adds Dick Doyle, ISPA president and chief executive officer. Key BSC communications tactics include informational, consumeroriented Web sites in English (www.bettersleep.org) and Spanish (www.dormirmejor.org); the annual Better Sleep Month awareness campaign in May; year-round public relations efforts primarily targeting media outlets directed toward women; and alliances with like-minded organizations and centers of influence. According to Nancy Butler, a former BSC director and current editor in chief of Sleep Savvy magazine, the BSC “has done an extraordinary job in the past 30 years. It started from scratch—at a time when no one else was talking about the importance of a better night’s sleep. As a

24 | BedTimes | September 2009

result of its work, we’ve seen consumers change their behavior—the replacement cycle for mattresses has gone down, and the mattress has moved higher on consumers’ radar screens as an important health investment.” The BSC currently recommends consumers evaluate their mattress every five to seven years to ensure it’s still providing enough comfort and support. Year-by-year focus This year is the fourth year of a five-year BSC communications plan devised by public relations agency FleishmanHillard. The theme for 2009 is sleep and healthy relationships. Next year it will be sleep and intellectual capability. The plan’s first three years highlighted sleep and its relationship to emotional wellbeing, work productivity and physical performance. The May 2009 Better Sleep Month campaign focused specifically on sleep and stress. Lissa Coffey, a lifestyle and relationship expert, served as spokeswoman and addressed the importance of living a well-balanced life to achieve the best sleep possible and, conversely, the importance of quality sleep to maintaining a healthy lifestyle. The campaign

yielded hundreds of thousands of media impressions and a 15% jump in visitors to the BSC’s Web site over the previous year. “We are diving into social media in a big way to help spread the BSC message online,” says Karin Mahoney, ISPA communications director. “During Better Sleep Month, we posted videos to YouTube, we blogged and conducted a blog tour. Shortly, we’ll be launching the BSC’s Facebook page, which will also be tied to our new Twitter feed.” Relevant research In addition to its media efforts, the BSC has a history of sponsoring relevant sleep-related research. A groundbreaking 2006 Oklahoma State University study published in the Journal of Chiropractic Medicine confirmed the critical link between mattress quality and quality sleep, as well as the importance of regular mattress replacement. That study and follow-up research published in the same journal showing that a new mattress can reduce stress both received extensive media coverage and have been used by mattress manufacturers and others in their own marketing and education efforts. BT www.sleepproducts.org/bedtimes


Suppliers tout ‘healthy’ tickings

I

of sales for Deslee n recent years, Textiles USA, which some mattress has headquarters in fabric suppliers Inman, S.C. “Many have steadily insmaller manufacturcreased the number ers choose them beof tickings they cause their products offer with a wide will stand out on the range of wellnessretail floor.” related benefits. Ticking suppliers A trend that often provide matbegan with the intress manufacturtroduction of tickers with labels and ing incorporating point-of-purchase a Sanitized fabric materials such as finish has grown to hang tags that allow include products retailers to deliver claiming to offer A point of differentiation Deslee Textiles USA information on sleepers everything Focused fabrics Enhanced tickings, like an says smaller mattress makers can gain an health benefits difrom aromatherapy aloe vera version from Bekaert USA, allow suppliers to target their wellness messages. advantage using fabrics with health benefits. rectly to consumers. and skin care to im“All the components of a bed which is based in Winston-Salem, proved oxygen flow and protection can add to the health and wellness from electromagnetic waves. N.C. “These products allow mattress story—the ticking, springs, foam, fi“Demand is growing. We get manufacturers to deliver micromesbers, etc.,” Wells says. “It’s a message asked all the time how ticking can sages related to health and wellness.” the public is waiting to hear and the help improve sleep,” says Brandon “Using a specialty ticking with whole industry should get on board Wells, vice president of sales and specific health benefits is popular with it.” BT now,” says Eric Delaby, vice president marketing at Bekaert Textiles USA,

Sleep message cuts across demographics Why the recent widespread interest in sleep? Aging baby boomers with aching joints, insomnia and other health complaints are certainly a driving force. “It’s important to remember that one reason the sleep story is so popular right now is that a wave of 20 million people turning 60 has so much spending power and they are developing sleep issues for the first time in their lives,” says Gerry Borreggine, president of the Princeton, N.J.-based mattress licensing group Therapedic Sleep Products. In all, there are about 76 million baby boomers between the ages of 45 and 63. The boomers “create a massive opportunity for the mattress sector,” writes Jerry Epperson in the 2008 annual report from the International Sleep Products Association. Epperson is a partner in Mann, Armistead & Epperson, an investment banking and advising firm in Richmond, Va. “Relief seekers” are Tempur-Pedic’s focus, says Dan Setlak, vice president of marketing and direct sales at the Lexington, Ky.-based manufacturer and retailer. “They are men and women of all ages, but they do tend to skew 45 and older.” Indeed, consumers interested in better sleep can be found in every age group, especially as news headlines proclaim

26 | BedTimes | September 2009

that a good night’s sleep promotes better cognitive function, feelings of well-being and even improves your looks. “To some extent the sleep/wellness message is universal,” says Andrew Gross, senior vice president of marketing at mattress maker Serta, which is based in Hoffman Estates, Ill. “It can be just as important to younger consumers who are dealing with today’s stresses and life’s hectic pace.” Epperson agrees: “America is finally beginning to recognize the importance of sleep to overall health, happiness and productivity. Study after study reinforces this, including a recent medical study that noted the most effective cure for a cold is sleep. While there is a tendency to relate health issues to the growing older portions of our population, studies show quality sleep is important from cradle to senior citizen.” www.sleepproducts.org/bedtimes


Making a pitch to the plus-sized

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orgive the pun, but the overweight are an expanding consumer segment, particularly in the United States. According to the National Center for Health Statistics, part of the Centers for Disease Control and Prevention, a whopping one-third of Americans have a body mass index above 30, placing them in the obese category. Along with obesity can come a number of health problems, from diabetes to sleep apnea. Meanwhile, several recent studies, including those carried out at Stanford University, the University of Wisconsin and the University of Chicago, have suggested that inadequate or poor quality sleep contributes to weight gain. Large-size sleepers’ need for fortified mattresses recently was illustrated in a cable television program that follows Ruby, a resident of Savannah, Ga., who weighed more than 700 pounds at the start of the series. In an August episode

28 | BedTimes | September 2009

of “Ruby,” she was down to about 300 pounds. Having broken beds when she was at her heaviest, Ruby had resorted to supporting her mattress with cinder blocks. Friends convinced her to buy a new mattress and she went home with a set from Comfort Solutions’ eXtended Life XL collection, which was designed specifically for large consumers.

“Our industry should not be avoiding these consumers. Something I learned the other day astounded me: 2.5 million Americans weigh over 500 pounds,” says Jimmy Orders, president of Greenville, S.C.-based mattress producer Park Place Corp. “We need to figure out how to help our retail partners address this sensitive issue.” And it is a sensitive issue—as Willowbrook, Ill.-based Comfort Solutions learned when the manufacturer and licensing group introduced eXtended Life XL. The line hit a snag with retail who were uncomfortable with the straightforward tag line “Better built for the plus-size sleeper,” according to Owen Shoemaker, Comfort Solutions senior vice president of products and marketing development. The company amended the line. It now reads: “The durable mattress...better built for plus-size sleepers.” BT

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Today’s ‘green’ shoppers Survey shows consumers are evolving

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ry to picture a “green” shopper—one who considers environmental and social responsibility when buying everything from eggs to mattresses. Have an idea in your head? You’re probably wrong, according to a new report, “Finding the Green in Today’s Shoppers,” released by global consulting firm Deloitte LLP and the Grocery Manufacturers Institute in Washington, D.C. Green consumers are more likely to be older, more affluent and better educated. But “demographically, they are diversely spread along all income ranges, age brackets, education levels and various household sizes,” the report says. In studying the behaviors of consumers when it comes to purchasing green products, the researchers created a profile of today’s shoppers, finding that they aren’t stuck in their patterns. Instead, they generally move through several stages in their beliefs and shopping habits. Manufacturers and retailers who understand these consumers can benefit from their significant spending power. Who’s a green shopper? The researchers estimate that more than half of all shoppers consider environmental and social issues when making at least some purchases. About 20%

2 30| BedTimes | BedTimes| September | September2009 2009

see sustainability as a key driving factor in their decision making. You may think that consumers concerned about sustainability issues shop less often and buy fewer products than others, but that’s not the case. “Green shoppers visit stores more frequently, buy more products on each trip and demonstrate more brand and retailer loyalty,” the report’s authors say. When shopping, green consumers bought more than they had planned (29% more often than the total survey population) and shop more frequently (26% more often). In general, these consumers are “routine, weekly” shoppers, the surveyors found. They also are less price sensitive than the larger population. “Green shoppers identified themselves as being among the most active shoppers and consumers,” the report says. “Our hypothesis is that these shoppers buy green to help reduce the social impact of their consumption.” But even for green shoppers, sustainability is not a primary driver of purchases. Instead, consumers tend to consider these issues when comparing similar products, using environmental benefits as a tie-breaker.

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About the survey

For the “Finding the Green in Today’s Shoppers” report, global consulting firm Deloitte LLP studied the behavior of consumers when it comes to purchasing sustainable products. Deloitte used questionnaires and interviews with nearly 6,500 consumers shopping at 11 major retailers. The survey was conducted on behalf of the Washington, D.C.-based Grocery Manufacturers Association but included shoppers at a variety of types of retailers. The organizations have conducted two similar surveys: “Sustainability: Balancing Opportunity and Risk in the Consumer Products Industry” in 2007 and “Sustainability: From the Boardroom to the Breakroom” in 2008. For more information, check www.deloitte.com or www.gmabrands.com.

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“Because of this effect, sustainability characteristics drive a relatively large amount of product switching,” the report says. “Once a more sustainable product has captured the shopper’s commitment, it tends to create brand stickiness by retaining the shopper’s loyalty through repurchase.” When it comes to demographics, green shoppers generally have higherthan-average incomes, live in smaller households, have more formal education and are older (part of the baby boom generation). “We intuitively expected younger shoppers to be the greenest demographic, but instead found that younger green shoppers place a higher importance on green issues, but have not fully integrated it into their actual shopping practices,” the researchers say. “We believe that these younger shoppers will become more green in their purchasing behaviors than their parents over time because they reported feeling strongly about the importance of sustainability.” But for any manufacturer or retailer to focus solely on one demographic when developing products or marketing strategies is a mistake, the researchers say. Green shoppers can be found in all demographics.

A dynamic consumer Researchers found that green consumers’ beliefs and behaviors evolve over time and organized them into five segments or stages of development: Unaware, Unsure, Influenced, Proactive or Committed. All shoppers surveyed were placed somewhere on that continuum and researchers found that consumers of all five types were found across demographic categories. ➤ Committed Only 2% of shoppers surveyed said they make most of their purchasing decisions based on sustainability considerations whenever possible. ➤ Proactive About 18% of consumers fit into this category. They actively consider sustainability issues when making most of their buying decisions.

➤ Influenced About 34% of shoppers consider sustainability as a secondary factor when making purchases. It’s this group that sees environmental and social benefits as a tie-breaker. ➤ Unsure A similar percentage (33%) say they are unsure how sustainability issues affect their purchasing or don’t let such considerations sway them. ➤ Unaware The remaining 13% of shoppers were either unaware of or didn’t care about sustainability. However, they will buy green products if they meet all of their other criteria. Those in the Committed and Unaware groups are unlikely to change their opinions about purchasing green products. But the other groups are “in a state of flux,” the report says. For instance, consumers in the

‘Sustainability characteristics drive a relatively large amount of product switching. Once a more sustainable product has captured the shopper’s commitment, it tends to create brand stickiness by retaining the shopper’s loyalty through repurchase.’ Influenced stage generally buy green products in only one or two categories. But, over time, they begin making more routine purchases of additional green products “probably as they learn more and recognize the social benefits,” the researchers found. The report continues: “While the Proactive and Committed shoppers adopt green products across categories at a faster rate, each shopper segment is on an adoption curve and developing new purchasing patterns. There is risk in assuming that green shopper segments will be constant over time and across categories. Sustainability as a product attribute puts people on a learning curve and creates a dynamic marketing environment.” Lost opportunities When it comes to producing and marketing green products, businesses could

32 | BedTimes | September 2009

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be doing much more. “Ninety-five percent of shoppers surveyed indicated they are ready and willing to consider more sustainable products, but green products were only purchased in 22% of the shopping trips,” the report says. “There are substantial gaps between the market’s readiness for sustainable products and the delivery of those products to the shopper’s market basket.” There are several things manufacturers and retailers could be doing to tap consumers’ interest in buying green products, including improving consumer education and enhancing in-store communication. About a third of shoppers said they would consider buying green products but aren’t inclined to seek them out. The researchers say this is, in part, because consumers don’t fully understand the benefits of green items. “Many are unaware of what makes a product sustainable versus merely ‘good for you.’ A large number of shoppers remain unsure of what is green and

34 | BedTimes | September 2009

➤D  efining ‘green’ The survey defined “green” as representing a broad set of product attributes linked to environmental and social sustainability: low-water usage, reduced packaging, organic, locally grown, fair trade, energy efficient, biodegradable, nontoxic, low volatility organic compounds, and recyclable materials or content.

some are still unsure of the whole green movement,” the report says. Among other things, companies can improve advertising, product labeling and packaging to better educate consumers. “Retailers and manufacturers need to provide more coordinated communication and education about sustainability,” the report says. “They need to make the

business case for buying green to the shopper.” Disturbingly, the surveyors found that although 63% of shoppers surveyed sought green products, only 47% actually found them in the store. “It is very possible for green products to become lost in the assortment. A good sustainable product strategy provides clear visibility and selling cues to the shopper to highlight green products in the assortment. Retailers and manufacturers need to work together to determine the appropriate assortment of green products, minimize out-of-stocks and clearly identify green products in the store,” the report says. Here is where manufacturers and retailers can work together to create a consistent, cohesive message about green products and draw shoppers’ attention to them through in-store signage and other point-of-sale materials. “With a little hard work, manufacturers and retailers can succeed with sustainability,” the report concludes. “Companies can turn green to gold.” BT

www.sleepproducts.org/bedtimes


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REGISTER EARLY AND SAVE!

The All-Industry Event for Mattress Retailers, Manufacturers, and Suppliers

Selling to the ‘redefined consumer’ in a changed economy 

Learn how the ‘green’ movement is likely to impact the mattress marketplace Find out what the latest research reveals about new consumer attitudes and spending patterns Understand the social networking explosion and how to use it to grow your business Hear how you and your retail partners can improve the consumer shopping experience

Gain new insights that will help you better understand today’s consumer so you can sell more mattresses! Who should attend? 

Network and Build Relationships Casual and relaxed social events will allow you to connect with customers, colleagues, and business partners. The conference is now expanded to include mattress retailers!

Mattress manufacturer and supplier executives and management

Sales and marketing representatives

Retail executives, managers, trainers and buyers

Consultants and service executives

Exhibits included! See the latest products and services to make your business more efficient and profitable.

To register, book your hotel or for more details, visit www.sleepproducts.org/IndustryConference


Join your manufacturer, retail and supplier colleagues for these information-packed sessions! Keynote: Redefining the American Consumer New research introduces you to the ‘grounded’ consumer Many experts feel that the recession has permanently altered consumers’ spending patterns. Hear about provocative new research from Context-based Research Group and Carton Donofrio Partners suggesting fundamental shifts in the way Americans think about themselves and the purchases they make. Join us for an in-depth presentation about this thought-provoking research!

Meeting Customer Expectations Selling the experience is what will keep her shopping Mattress retailing is at a point in the industry’s lifecycle where selling the experience is becoming as important as the product assortment offered, says retail marketing and merchandising expert Marty Walker. Walker challenges mattress retailers and their manufacturer partners to move beyond the traditional emphasis on products and features to focus on what is truly important to customer…and what will make the sale!

Tapping the ‘Green’ Market Who are ‘Green Consumers’ and What Do They Really Want? The green movement is clearly here to stay as more and more consumers base their purchasing decisions on how eco-friendly a product is or how committed a company is to environmental responsibility. Who are these consumers and how can you respond to their wants and needs?

Marketing Through Social Media Why You Can’t Afford to Ignore the Social Networking Explosion Social networking has forever changed the way people use technology to interact with others. Innovative companies are listening closely and delivering products and services based on these two-way conversations. Learn how social networking is changing the business landscape.

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IndustryConference Get the most out of ISPA conference Annual event offers myriad opportunities By Richard G. Ensman Jr.

Y

ou’ll want to take advantage of everything the upcoming International Sleep Products Association’s Industry Conference and Exhibition offers you—information and demonstrations of new products and services, informative seminars and business sessions, and a chance to network with mattress makers, suppliers and retailers. (See event details on Page 40). But the event, held Nov. 4-6 at the Hyatt Regency Coconut Point Resort and Spa in Bonita Springs, Fla., provides you with something else: a wealth of less obvious opportunities that can lead you to fresh business ideas and new contacts. Here’s a list of must-do activities:

and critically important issues, including “Redefining the American Consumer,” “Meeting Customer Expectations,” “Tapping into the Green Market,” “Marketing Through Social Media” and more. A complete schedule can be found at www.sleepproducts.org/ industryconference. Help a colleague This might be little more than a few practical suggestions about marketing shared over drinks. Or it might be an offer to explain quality control procedures you’ve developed. Listen to the needs of others and be willing to respond generously when you can. You’ll gain satisfaction from the encounter—and you might learn something yourself.

Use your 30-second “elevator speech” This is the capsule introduction you give whenever you want to provide an overview of your background and business. Make it a point to give this speech at least once a day to someone you don’t know. This simple act of networking will pay off later.

Identify one great idea you can take back It might be an innovative idea you heard in a seminar or a list of sales suggestions you obtained during a networking lunch. Resolve to share that great idea with colleagues or employees as soon as you return.

Ask one important question of a seminar leader Think for a moment: What quandary has troubled you most during the past year? What concern wakes you up at 3 a.m.? Ask about that issue. It may bring you a new perspective on your business.

Kick the tires Whenever you visit an exhibitor’s booth that intrigues you, sample what’s being offered. If you can’t “test drive” the product during the conference, see if trial runs can be made available to you at your plant or headquarters.

Compose your to-do list As you hear good ideas and things to follow up on, add them to your to-do list immediately. Every evening, organize the items on your expanding list in order of priority—and plan to tackle the most important ones as soon as possible.

Listen for the buzz You learn a lot during seminars and business sessions. But

Explore a topic less familiar to you This year’s event features seminars and business sessions on a host of timely www.sleepproducts.org/bedtimes

➤ Learn more To register for and learn more about the ISPA Industry Conference & Exhibition, check www.sleepproducts.org/ industryconference.

you can pick up additional information by listening to the chatter following those sessions. After meetings, hang out for a minute see what you can hear. Make at least one new contact each day Use parties, seminars and mealtimes to meet people who share common bonds with you, such as colleagues in similar-size companies or people who have backgrounds that intrigue you. Read all the promotional literature you receive You’ll probably learn about a new product or service that can save money or increase productivity. At the very least, you can see how others are marketing their products and glean ideas you can use to market your own. Visit all the exhibitors Check out all relevant exhibitors even if you think you’re not in the market for a particular product. You never know what information and ideas you might find. This year the ISPA Industry Conference and Exhibition will include booths of both industry suppliers and, because retailers will be attending the event, mattress manufacturers. Watch the techniques of presenters and exhibitors You might pick up sales and persuasion tips—tips you can use to boost your own success once you arrive home. BT

BedTimes | September 2009 |

39


IndustryConference

ISPA conference will be all-industry event T

he International Sleep Products Association’s Industry Conference and Exhibition will be a true all-industry event, bringing together mattress manufacturers, suppliers and retailers. The event is Nov. 4-6 in Bonita Springs, Fla. The program of seminars, keynote addresses and panels is designed to give you new insights that will help you better understand today’s consumer and sell more mattresses. Among other things, the event will show you: ➤ How the “green” movement is impacting the mattress marketplace ➤ What the latest research reveals about new consumer attitudes and spending patterns ➤ How to use social networking to grow your business ➤ What manufacturers and retailers can do to improve the consumer shop-

40 | BedTimes | September 2009

ping experience. The 21/2-day event will be valuable for management, sales and marketing executives from mattress manufacturers and industry suppliers, as well as retail executives, managers, trainers and buyers. The exhibits from suppliers of products and services to the mattress industry have become a popular part of the annual conference. This year, with the addition of retailers to the event, mattress manufacturers also will showcase their offerings. As always, the conference includes plenty of time for meeting with longtime colleagues, business partners and customers—and for building new relationships. Networking opportunities include two evening parties, breakfasts and lunches, and the always-popular

golf tournament on the final afternoon. This year the conference will be at the Hyatt Regency Coconut Point Resort and Spa, which was recently named by Travel + Leisure magazine as one of the world’s 500 best hotels. The lavish resort is situated on 26 acres on Estero Bay in the Naples, Fla., area. After the day’s activities, you can enjoy the spa, tennis, a private beach or other water activities. The hotel’s Raptor Bay Golf Club is ranked among the top 10 favorites by Gary Van Sickle, senior writer for Sports Illustrated. For more information and to register for the event, check www.sleep products.org/industryconference. The deadline for discounted hotel rates is Oct. 12. Register for the conference by Oct. 20 to receive an early-bird discount. BT

www.sleepproducts.org/bedtimes


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IndustryNews Spring Air adds 6 U.S. licensees

S

ix manufacturers have joined the new Spring Air International licensing group, bringing to 13 the total number of North American mattress makers producing the Spring Air brand. The additions give the brand coast-to-coast coverage in the United States, the Boston-based company said. The former Spring Air Co. collapsed in May and, that same month, current company Chairman Ed Bates acquired the Spring Air brand family, which includes the flagship Back Supporter and Chattam & Wells brands. He also acquired Nature’s Rest, which he holds under a separate entity. The six new U.S. licensees are: ➤ Pleasant Mattress Inc. will service northern California. Founded in 1959, Pleasant Mattress is a family business owned and operated by President Herb Morgenstern. In addition to its mattress line of Cannon Sleep Products, the company is one of the nation’s largest futon manufacturers. It has headquarters in Fresno, Calif. ➤ Medi-Pedic Bedding Co. will distribute mattresses to Arizona and southern California. Medi-Pedic, based in Commerce, Calif., was founded in 1990 and is owned by President Gereis Sidaros. It also holds an Englander license. ➤ Upper Midwest Sleep Products is a family-owned business with mattress factories in Grand Forks, N.D., and Toledo, Iowa, (operating as Midwest Sleep Products). It will produce Spring Air product for those two states, as well as Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. The company is owned and operated by Richard Stevens, whose family began making mattresses in the 1920s. It also holds a Restonic licensee. ➤ Pennsylvania Bedding, founded in 1906 and based in Old Forge, Pa., www.sleepproducts.org/bedtimes

is led by President Bill Spudis. It will supply retailers in Delaware, the District of Columbia, Maryland, New Jersey, New York and Pennsylvania. Pennsylvania Bedding, which had held a Comfort Solutions license, won multiple national awards from the company for product quality and other areas of business performance. It now holds a Therapedic licensee. ➤ Winco Bedding Co. Inc. will produce Spring Air product for Arkansas, Kansas, parts of Louisiana, Oklahoma and Texas. The company is led by Chief Executive Officer Carroll Moran, who also owns Corsicana Bedding Inc., a seven-plant operation founded in 1971. Winco Bedding plans to open a separate manufacturing facility in Carrollton, Texas, dedicated to making Spring Air products. ➤ Once a Spring Air Co.-owned

plant, the Spring Air Salt Lake City facility ceased operating along with the former corporate entity but has since reopened as Spring Air-Mountain States. Led by President Dale Schmutz, who was chief financial officer of the former operation, Spring Air-Mountain States will serve Colorado, Idaho, Montana, Nevada, Utah and Wyoming. “Undoubtedly the Spring Air brand lost many valuable customers during the transition,” said Rick Robinson, Spring Air International president. “But in reorganizing the company to include many of the industry’s best and brightest producers and in rethinking our operating philosophy and strategic direction, we firmly believe in our collective ability to cultivate new business and recapture a healthy percent of the share that was lost.”

New Spring Air providing warranty assistance Boston-based Spring Air International has stepped in to assist consumers and retailers with warranty questions and concerns about product made by the former Spring Air Co., which ceased operation in May. Consumers can receive assistance from Spring Air International headquarters or any of its licensees, the company said. Consumers can access the company’s contact information at its newly launched Spring Air International Web site, www.springair.com, which was expected to be operating by midSeptember. Current and former Spring Air dealers who are contacted by customers seeking warranty assistance should contact their Spring Air International supplier or the Spring Air factory closest to the consumer’s home. “The integrity of the Spring Air brand is extremely important to our organization and we’ve helped many consumers who have sought assistance after the old Spring Air Co. closed down,” said Rick Robinson, president of Spring Air International. “Our intention is to continue to do the right thing for both retailers and consumers affected by the shutdown, even though we have no legal obligation to do so.” The company’s voluntary warranty position—which excludes nonwarranted comfort returns or claims related to retail trial offers—applies to all of Spring Air’s brands, including Back Supporter, Nature’s Rest and Chattam & Wells.

BedTimes | September 2009 |

43


IndustryNews

L&P sales drop 29%, balance sheet strengthens Machinery and components supplier Leggett & Platt, which has headquarters in Carthage, Mo., reported 2009 secondquarter sales of $757 million, 29% lower than the same period in 2008. Operating cash flow was $174 million for the second quarter and $288 million for the first half of 2009. The amount was “fully sufficient� to fund year-to-date capital expenditures and dividends, the company said. The Residential Furnishings unit, which includes bedding components, adjustable beds, foam and other bedding-related products, reported that total second-quarter sales from continuing operations decreased $138 million, or 25%, when compared to the same period in 2008. Weak demand more than offset inflation-related price increases and market share gains in specific product categories, the company said. Earnings before interest and income taxes from continuing operations decreased $25 million, with the income impact of significantly lower unit volumes partially offset by cost reductions, according to the company.

Total sales in the company’s Industrial Materials segment, which includes mattress manufacturing equipment, decreased $95 million, or 38%, as a result of weak demand and lower steel prices, L&P said. EBIT decreased $9 million, due to lower sales and was partially offset by cost reductions. Net debt declined to 24% of net capital, versus 32% one year ago. The company said it has no commercial paper outstanding, has $600 million in cash available and has no significant long-term debt maturing until 2013. “Weak demand continues across our markets and shows few signs of imminent improvement,� said David Haffner, L&P president and chief executive officer. “Even so, we are extremely well positioned, from both balance sheet and cost structure perspectives, to ride out the demand downturn. Despite an anticipated full-year sales decline of about 25%, gross margin is increasing due to our cost-containment efforts, headcount reduction, facility consolidations and dispositions. Our already strong balance sheet improved further during the quarter and, over the long term, we still intend to use a significant share of excess cash flow to repurchase our stock.�

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Maxime Knitting Mills is a North American custom manufacturer of circular knits, serving major mattress manufacturers on a global scale. For the last 25 years, Maxime Knitting Mills has produced a variety of knit solutions for manufacturers and strives to offer a wide selection of knitted fabrics that reflect our highest standards of quality and innovation.Through great design and top quality materials, we proudly present to you our complete collection of mattress ticking which includes various styles, colors and materials. V.P. Sales and Marketing] Lorne Romoff lromoff@maximeknitting.com]Cell: 514-265-8782 %FTMBVSJFST4USFFU].POUSFBM 2VFCFD])/9 $BOBEB

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44 | BedTimes | September 2009

www.sleepproducts.org/bedtimes


IndustryNews

Select Comfort reports improved 2nd quarter M

inneapolis-based airbed manufacturer and retailer Select Comfort said net sales for its fiscal second quarter of 2009 totaled $120.6 million, a decrease of 21%, compared to $152.1 million in the second quarter of 2008. But the company reported secondquarter operating income of $1 million,

an $11.2 million improvement compared to the second quarter of 2008. “We continued to make improvements in our financial results, despite ongoing economic challenges and what is historically our weakest selling period,” said Bill McLaughlin, Select Comfort president and chief executive

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officer. “We made progress against our 2009 turnaround plan, which resulted in positive cash flow and an improved pretax profit over the prior quarter. We are pleased with the impact of our efforts on our overall financial position and our team remains focused on pursuing incremental ways to reduce costs, build our brand, and preserve cash and improve our capital structure.” Select Comfort generated cash flow of $11.5 million from operating activities, reduced borrowing under its revolving credit facility to $43.8 million and reached an agreement with equity firm Sterling Partners for a $35 million cash investment into the company, subject to shareholder approval. Second-quarter gross profits were $74.3 million, compared to $90.6 million for the same quarter in 2008. Gross profit margin was 61.6%, up from 59.6% in the prior year. The improvement reflects improved efficiencies in manufacturing, offset by a more aggressive promotion strategy to generate store traffic and drive sales, the company said. Cash flow from operating activities totaled $35.6 million for the first six months of 2009, which included $25.8 million in tax refunds associated with prior-year losses. This compares to $10.4 million of operating cash flow for the first six months of 2008. The company reduced capital expenditures to $1.9 million for the first six months of 2009, compared to $20.9 million in the first six months of 2008, reflecting action taken to significantly reduce investments in store expansion and information technology infrastructure, the company said. As of July 4, cash and cash equivalents totaled $4.5 million. Outstanding borrowings under the company’s revolving credit facility totaled $43.8 million. see page 47 www.sleepproducts.org/bedtimes


Shorts Bedding sales fall in June

Unit sales fell 9.2% in June 2009 compared with June 2008 and the dollar value of mattresses declined 12.1%, according to the Bedding Barometer, a monthly report from the International Sleep Products Association that tracks mattress sales activity in the United States. The average unit selling price dropped 3.2%.

“live chat” feature to assist shoppers. Sleepy’s recently purchased multichannel mattress retailer 1800mattress.com, which it operates as a separate company.

Canada considers phthalates ban

Health Canada has proposed banning six phthalates from use in soft vinyl

toys and child care articles. The six phthalates (DEHP, DINP, DBP, BBP, DNOP and DIDP) are the same that were banned in child care articles in the United States by the Consumer Product Safety Improvement Act. At this time it is unclear whether Health Canada considers mattresses for young children a child care article.

Simmons meets loan conditions

Atlanta-based mattress maker Simmons confirmed on July 31 that it had satisfied the conditions that were necessary to continue its forbearance period with its senior bank lenders through Aug. 14. The company had announced on June 30 that the senior bank lenders’ agreement to a forbearance period lasting until Aug. 14 was subject to Simmons meeting certain conditions by July 31. The company also announced that the forbearance agreement with the majority of the holders of its $200 million 7.875% senior subordinated notes was extended until Aug. 14.

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Sleepy’s adds e-commerce

Bethpage, N.Y.-based bedding retailer Sleepy’s, which operates 700 retail outlets mostly in the Northeast, has added e-commerce and telephone ordering to its sales channels. Customers can call 1-800-SLEEPYS to purchase mattresses and sleep accessories and to schedule deliveries or they can visit the company’s revamped Web site, www.sleepys.com. The site offers a

from page 46 The company said that during the second quarter it continued to focus on aligning costs with current and anticipated sales levels, reigniting the Sleep Number brand, preserving cash and improving its capital structure. It closed an additional 21 stores and reduced marketing and administrative expenses. www.sleepproducts.org/bedtimes

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BedTimes | September 2009 |

47


IndustryNews

Tempur-Pedic: Sales fall, profits rise B

edding maker Tempur-Pedic reported a 22% drop in net sales to $185.2 million in the second quarter of 2009, when compared to the same quarter of the previous year. Net income for the quarter was $16.9 million, as compared to net income of $20.2 million in the second quarter of 2008. Total net sales declined 19%. Net sales in the domestic segment declined 19%, the Lexington, Ky.-based company said, while international segment net sales declined 29%. Sales of its mattresses declined 24% globally; they were down 20% domestically and 31% internationally. On a constant currency basis,

48 | BedTimes | September 2009

international mattress sales declined 21%. Pillow sales declined 17% globally—12% domestically, 20% internationally. On a constant currency basis, international pillow sales declined 12%. Gross profit margin was 46.6% as compared to 44.4% in the same quarter of the previous year. The increase was due to lower commodity costs, improved efficiencies in manufacturing and improved pricing, partially offset by fixed cost deleverage related to lower production volumes, the company said. Operating profit margin was 15.7% as compared to 15.2% in the second quarter of 2008. The compa-

ny said it was able to reduce operating expenses by $12.5 million to $57.2 million in the second quarter of 2009 from $69.7 million in the second quarter of 2008 and increase operating cash flow to $39.5 million in the second quarter of 2009. It reduced its total debt by $31 million to $369 million and increased cash by $3.8 million to $25 million. “During the second quarter, our initiatives to drive sales and margins continued to show progress,” said Mark Sarvary, Tempur-Pedic chief executive officer. “Our productivity projects helped us expand gross margins with improvement compared to last year and last quarter.”

www.sleepproducts.org/bedtimes


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IndustryNews

Foamorder.com recalls mattresses

S

an Francisco-based manufacturer Foamorder.com has voluntarily recalled about 140 mattresses that fail to meet the federal open-flame mattress standard, 16 CFR Part 1633, according to a notice from the U.S. Consumer Product Safety Commission released July 23. The Natural Sense foam-block,

cotton-covered mattresses were sold online from July 2007 through May 2009. They were available in twin, twin long, full, full long, queen, California king and extended king sizes, retailing for between $225 and $1,420. The mattresses were manufactured in the United States. Foam mattresses that have a cover

with a gold ribbon pattern and a label stating, “This mattress meets the requirements of 16 CFR Part 1633 (federal flammability open-flame standard for mattress sets) when used without a foundation or with foundations” are not included in this recall, the CPSC said. The CPSC said consumers should contact Foamorder.com to determine if their mattress is included in the recall, and if it is, to receive a free cover to be placed over their mattress. For additional information, the CPSC tells consumers to contact Foamorder.com through www.foamorder.com or by calling 800-256-6162.

Short TEMPUR India opens stores

Springwel Mattresses Pvt. Ltd., the exclusive distributor of Tempur-Pedic mattresses in India, has announced the opening of two TEMPUR India retail showrooms. The first opened in New Delhi in April; a second store opened in Mumbai in May. The company plans to open an additional 15 showrooms in 15 Indian cities by the end of 2010. The Mumbai store features a special “sleep cabin” with an adjustable bed that simulates the effects of space travel, the company said. Springwel is a maufacturer of foam, coir, latex and innerspring mattresses based in Delhi, India.

50 | BedTimes | September 2009

www.sleepproducts.org/bedtimes


CPSC gives direction on tracking labels

T

he Consumer Product Safety Improvement Act requires that, as of Aug. 14, any children’s product and its packaging, including mattresses intended primarily for children 12 and younger, bear a permanent distinguishing mark or label to help consumers identify whether an item is subject to a product recall. The U.S. Consumer Product Safety Commission recently issued guidance on how the requirement will be implemented. According to the document, the CPSC believes that Section 103(a) of the law is not intended to impose significant additional burdens on manufacturers who already make available the required information, but to bring those who do not up to a higher standard. According to the document, the CPSC believes that required information already permanently marked to brand the product to comply with other commission or federal regulations (such as those promulgated under the Textile, Wool and Fur Acts) could be considered part of the distinguishing marks called for by Section 103(a). On the basis of CPSC’s guidance, the International Sleep Products Association believes it is reasonable to conclude that the production information already contained on the 16 CFR Part 1633 mattress label meets the tracking label requirements of the law. However, ISPA urges manufacturers to review the entire document on the CPSC’s Web site, www.cpsc.gov/about/cpsia/ sect103policy.pdf, and to consult with legal counsel to determine their responsibilities.

www.sleepproducts.org/bedtimes

Short OMI takes more Las Vegas space Organic Mattresses Inc., which has headquarters in Yuba City, Calif., is expanding its presence at the Las Vegas Market. In addition to its permanent showroom at the market, the mattress manufacturer will occupy space at the Specialty Sleep

Association exhibit. At the show, OMI will introduce a 100% natural rubber latex organic sleep system with a suggested retail price of $1,595 for a queen size—a lower price point than typical for such a mattress, the company said. The market is Sept. 14-17.

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BedTimes | September 2009 |

51


IndustryNews FactoryDirect aids legibility and gives the readerâ&#x20AC;&#x2122;s Direct marketing eyeShorts a resting point. Anatomic Global seeks allows companies ¢ Take advantage of free or lowHollandia lands hotel placement priced clip artPeacock and stock that Inject some humor. Itâ&#x20AC;&#x2122;s rarely The 16 guestrooms of the historic Innphotos in Princto target previous dismissal of lawsuit are available online. seen in direct mail but is a eton, N.J., have been outfitted with Morpheus beds from A G , with headquarters in customersâ&#x20AC;&#x201D;a veryInternational, ¢ Add dramatic contrast colgreat way to formhas a connection with Hollandia a manufacturer based with in Sderot, Corona, Calif., filed a motion to dismiss a patentors, shapes, fonts and graphics. your audience. Perhaps open the Israel. The Morpheus mattresses are made of latex and infringement lawsuit filed by Tempur-Pedic against the important group ¢ Create consistent throughpiece by discussing a mattress or have a suggested retail price ofa$2,600. Thelook two-sided, company and 13 other manufacturers in U.S. District out the piece. Repeat key design sleep-related issue that is a source in times like these, queen-size mattresses have both a soft and a firm sideeleso Court for the Western District of Virginia on the basis ments, such as bullets and headers, ofthat annoyanceâ&#x20AC;&#x201D;like waking up in they can be reversed to suit sleepersâ&#x20AC;&#x2122; preferences. Guests Anatomic Global lacks personal jurisdiction and when prospecting using thefrom same color Inn, and which font. the morning and painsâ&#x20AC;&#x201D; can purchase the mattresses thesize, Peacock that Virginiawith is anaches improper venue because Anatomic ¢ Know when to use serif and sans then give readers a jolt by adding a reopened inis May after a three-year renovation. Global never sold product in the region. for new customers serif fonts. Serif fonts have tiny comic twist. It also has initiated litigation against Tempur-Pedic in especially difficult. United Feather targets hotelsstrokes attached to the horizontal U.S. District Court for the Central District of California

when possible. Recipients will scan the text, not read word for word.

12

natomic

lobal a mattress maker

United Feather & Down, headquartered in Des eyes Plaines, letters that help readersâ&#x20AC;&#x2122; flow Dress up athe design judgment in its favor. The counterseeking declaratory Ill., has introduced a new line of mattress pads and are pillows from letter to letter, so they good sive Sales Tools, offers these tips for What your direct marketing piece suit claims that Tempur-Pedicâ&#x20AC;&#x2122;s patents are â&#x20AC;&#x153;unenforcefor the hospitality industry. The Hospitality Quality Pillow for the body copy in text-heavy designing effective direct marketing looks like can be asâ&#x20AC;&#x201D;or even able, invalid and were not infringed upon under any and Pad set includes two pillows two mattress pieces. (Theand textone in of this article is a pieces. moreâ&#x20AC;&#x201D;important circumstance.â&#x20AC;? than what you pad stylesâ&#x20AC;&#x201D;the Superserif Topper is 2.5 inches thick with a are font.) Bold sans serif fonts ¢ Use powerful photography or art, have Anatomic to say. Karen Saunders, author Global said it will continue to support and skirt; the Extra Protection pad is reversible andone waterinteresting colors and fitted interesting good for headlines (like the on ofcollaborate Turn Eye Appeal to Buy Appeal: in the case. with other defendants The comand stain-repellent. The fillstory) fiber for the pillows and pads is this because they slow readers graphics, but use them sparingly. How to Easily Transform Your Marpany was founded in 1989 and touts its â&#x20AC;&#x153;made in the a trademarked high-loft polyester called Sensuelle. BT down and grab their attention. ¢ Include enough white spaceâ&#x20AC;&#x201D;it keting Pieces into Dazzling, PersuaUSAâ&#x20AC;? environmentally friendly mattresses.

Baron Styles, Inc

Custom Quilting & Sewing We do it all . . . Call Today for a Quote!! U All Natural - Mattress Kits - 1633 Certified UAll Natural - Mattress Pads UMattress Quilting - Tack & Jump Available USheet Sets - Custom Sizes & Shapes UMagnetic Mattress Pads and Accessories UInternational Shipping Available

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Shorts L&P offers new adjustable base Leggett & Platt’s Consumer Products Group will introduce ShipShape, a new adjustable mattress foundation, at the Las Vegas Market held Sept. 14-17. ShipShape allows consumers to customize mattress sets. “Because it is ultra-light and flexible, ShipShape can be shipped cheaply in large quantities, even via UPS or FedEx, and is extremely easy to carry. This allows retailers to dramatically lower shipping and warehouse costs by up to 30%,” the Carthage, Mo.based company said.

Louisville Bedding introduces Smooth Grip Louisville Bedding, a producer of mattress pads, pillows and other sleep accessories and components based in Louisville, Ky., has created the Smooth Grip mattress pad. It features a flat sidewall that holds tightly to the mattress from underneath and, like the rest of the company’s mattress pads, is guaranteed not to shift or pop off the mattress when sleepers move.

www.sleepproducts.org/bedtimes

Eastman House adds A.H. Beard as licensee

North Brunswick, N.J.-based mattress manufacturer and licensing group Eastman House has signed a new international licensee, A.H. Beard, which has headquarters in Sydney, Australia. Under the agreement, A.H. Beard is given exclusive rights to manufacture and market the Eastman House brand in Australia and New Zealand. “We look forward to working closely with Allyn and Gary Beard and the entire A.H. Beard team. When it comes to Australia, we believe A.H. Beard to be synonymous with quality and a perfect fit for Eastman House,” said Stuart Carlitz, Eastman House chief executive officer. A.H. Beard is one of Australia’s largest bedding producers, operating seven factories in Australia, New Zealand and India. The company licenses Eclipse and several other brands, as well. The ultra-premium Eastman House brand was founded by Chittenden & Eastman Co. in 1866. It was purchased by the parent company of Eclipse International in 2007.

BedTimes | September 2009 |

53


IndustryNews

Therapedic signs Pennsylvania Bedding

T

herapedic International has inked a licensing deal with Pennsylvania Bedding, an Old Forge, Pa.-based company that has been manufacturing mattresses for more than 100 years. The former Comfort Solutions licensee will service Maryland, New York, central Pennsylvania and a portion of West Virginia for Therapedic. “It’s the right move at the right time,” said Bill Spudis, Pennsylvania Bedding president. “We will have the flexibility to operate as a regional powerhouse and to provide our retailers with exactly what they need to succeed today.” Gerry Borreggine, president of Princeton, N.J.-based Therapedic, said he is thrilled to have Pennsylvania Bedding on board. “We have added a factory with a

54 | BedTimes | September 2009

Short McRoskey sponsors film

New partnership Gerry Borreggine (right), president of Therapedic International, welcomes Bill Spudis, president of Pennsylvania Bedding, to the licensing group.

celebrated history in the bedding industry that will become a cornerstone licensee of the group,” he said. “They have won numerous awards for quality manufacturing, sales and leadership. And now, they’re on our team.”

McRoskey Mattress Co. in San Francisco was a major sponsor of the 14th Annual San Francisco Silent Film Festival, held July 10-12. The nonprofit festival promotes the artistic, cultural and historic value of silent film. McRoskey underwrote the festival’s opening night screening of “The Gaucho,” a 1927 classic featuring Douglas Fairbanks. “We were pleased to lend our support,” said Robin Azevedo, McRoskey president. “We’re a San Francisco classic, as is the film festival, so this is a natural alignment for us.”

www.sleepproducts.org/bedtimes


L&P revamps bedding components Web site L eggett & Platt has redesigned its bedding components Web site with a more modern design, simpler navigation and updated information about products and services. The site, www.lpbeddingcomponents.com, now includes complete information about the professional services the Carthage, Mo.-based industry supplier offers to manufacturers and retailers, including â&#x20AC;&#x153;agency-qualityâ&#x20AC;? creative marketing services, the company said. Â The site was updated to provide customers with information about the components and creative and technical solutions the company offers, said Mark Quinn, group executive vice president of marketing for

L&Pâ&#x20AC;&#x2122;s bedding division. At the site, visitors can learn about the L&P National Testing Center, a comprehensive testing lab for bedding products housed in the companyâ&#x20AC;&#x2122;s

IDEA Center. It offers customers in-depth evaluations of bed sets and components for a fee. The new Web site is designed to make emotional connections with many audiencesâ&#x20AC;&#x201D;from mattress industry members to consumers. For instance, innerspring descriptions go beyond â&#x20AC;&#x153;sterile lists of specs and benefitsâ&#x20AC;? to include the less tangible but equally important benefits of sleep, according to the company. The siteâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Better Sleepâ&#x20AC;? page outlines the negative effects to the mind and body of poor sleep, and emphasizes the importance of ergonomically engineered bedding sets. It also includes tips on how people can get the best sleep possible.

Baron Styles, Inc

Custom Quilting & Sewing We do it all . . . Call Today for a Quote!! U All Natural - Mattress Kits - 1633 Certified UAll Natural - Mattress Pads UMattress Quilting - Tack & Jump Available USheet Sets - Custom Sizes & Shapes UMagnetic Mattress Pads and Accessories UInternational Shipping Available

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BedTimes | September 2009 |

55


ISPANews Shorts Are you in the Supplies Guide?

Become a conference sponsor

Annual cost survey now available

The BedTimes Supplies Guide is the industry’s most comprehensive and up-to-date directory of products and services. If your company is already included in the online guide— www.bedtimessuppliesguide.com— take a moment to see if you need to make changes to your information. Not part of the online guide? Now is the time to purchase a listing. For updates and purchases, contact MultiView, our publishing partner, at 800-816-6710. The online guide is the basis for the print version that appears in the December issue of BedTimes. All updates and new listings must be completed by Oct. 2 to be included in the print version.

If you provide equipment, components or services to the mattress industry or are a manufacturer of finished product who wants to market your brand to key bedding retailers, a sponsorship at the ISPA Industry Conference and Exhibition will help you make connections with the industry’s top executives. The event is Nov. 4-6 at the Hyatt Regency Coconut Point Resort and Spa in Bonita Springs, Fla. Sponsorships are sold on a first-come, first-served basis. For more information, contact Kerri Bellias, ISPA vice president of sales, at 336-945-0265 or kbellias@sleepproducts.org.

The new “2008 ISPA Annual Cost Survey” from the International Sleep Products Association will help you make decisions about managing expenses, measuring productivity, protecting the bottom line, controlling inventory, evaluating employees and managing cash flow. The survey presents the most complete, accurate and up-to-date compendium of mattress manufacturer financial and operating results. ISPA members can purchase the report at a discounted price: $500. To order a copy, check www.sleepproducts.org or contact Jane Oseth, member services manager, at joseth@sleepproducts.org or 703-683-8371, Ext. 1130.

In a recent, independent study: 95% of mattress customers polled (ages 21-34) said the Purista™ freshnessenhancing treatment was a feature they desired in their mattress. Contact us today to learn more about how the Purista™ brand can become a part of your polyurethane and latex foams solution.

Learn more at www.purista.biz or call 800.491.8375

56 | BedTimes | September 2009

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ISPAAdvocacy Bill introduced to boost mattress, furniture sales

U

.S. Rep. Hank Johnson (D-Ga.) and U.S. Rep. Nathan Deal (R-Ga.) have introduced a bipartisan bill that will help consumers purchase home furnishings and other home-related products. The Home Improvements Revitalize the Economy Act (H.R. 3382) calls for targeted consumer tax incentives for the purchase of mattresses, furniture, flooring, paint and other home-related products and provides retailers direct tax credits. “Not only would this bill help stimulate the manufacturing market for home furnishings and building products, it would save and create retail jobs, generate billions in revenue and increase home values at a time when we really need a boost,” Johnson said.

Deal added: “The HIRE Act will offer incentives for consumers who would otherwise forgo spending in 2009 and 2010, allowing them to improve their homes, and, in turn, jump-start the home furnishings and building products market.” The HIRE Act, which applies to households with income up to $300,000, provides a tax deduction of $2,000 per family and tax credits of $500 for the purchase of qualified home furnishings and building products. Under the bill, retailers are eligible for related tax credits of up to $10,000. The HIRE Act is supported by the American Home Furnishings and Building Products Coalition, a group of 14 industry associations formed in

December. The coalition includes the International Sleep Products Association, the American Home Furnishings Alliance and the National Home Furnishings Association. Dick Doyle, ISPA president and chief executive officer, praised Johnson and Deal for taking the lead in advancing the HIRE Act in Congress. “As a result of the housing crisis and the economic downturn, the home furnishings and building products industries have been severely impacted,” Doyle said. “In 2007 and 2008, the industries represented by our coalition lost $67 billion in direct economic value and lost 273,000 American jobs. If nothing is done, these industries will lose another $74 billion and 299,000 jobs in 2009.”

Simplify your search to find the industry products and services you need fast! Bypass the irrelevant clutter of general internet searches and get focused results for industry-specific products through the online BedTimes Supplies Guide, the “next-generation” supplier directory for the mattress industry. Search by company, category, keyword, or product name. Visit www.bedtimessuppliesguide.com today.

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BedTimes | September 2009 |

57


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Ladkrabang Industrial Estate, Bangkok Thailand. Tel : + 66 2 326 0886 - 7, Fax : + 66 2 326 0292 Email : market@latexsystems.com, website : www.latexsystems.com www.latexsystem.com Agent for North America: Crismor International, Inc Tel: 951-369-4971 Email: contact@crismor.com

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LeadershipLessons Words hold true: Nothing to fear but fear itself During tough times, focus on the future By Larry Wilson

“First of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror, which paralyzes needed efforts to convert retreat into advance.” Those words came to us in 1933 from President Franklin D. Roosevelt as he described Americans’ reactions to the Great Depression. Even though we’re not experiencing the economic catastrophe that we were in 1933, things are tough today. There’s plenty to be concerned about. Yet it’s clear that a leader’s job is to keep a team together, even as some things are falling apart. What’s a leader’s biggest challenge? It’s to cultivate a positive attitude rather than allowing a culture of doom and gloom. As FDR said, leaders need “to convert retreat into advance.” Start by realizing that you don’t have all the answers. You don’t—no one does. I can tell you who has the best answers: It’s the team itself. If you haven’t been leading this way, now is the time to change your leadership style and start encouraging your staff to get involved. It’s time to see them as part of your opportunity, rather than part of your problem.  What’s the benefit of engaging people to do more than just their jobs? It’s huge. Unless you’re living in a cave, you know change is happening at speeds never seen before. Old rules have to be replaced by new rules. We need new answers and new solutions. Each person is unique, with talents that are often overlooked and undervalued. There is no greater waste than that of human potential.  Leaders exist to help others tap into this undiscovered potential. To do so, leaders have to let go of thinking that www.sleepproducts.org/bedtimes

their job is to control and command. These new times require leaders to serve their followers by empowering, freeing and coaching them to make the best choices. When we do those things, people return the favor by doing not just their jobs, but by doing what’s right. And right means serving the customer, supporting co-workers and using our talents, creativity and passion to improve the entire organization. A high-performing team that’s learned to work together can apply its efforts to “convert retreat into advance.” Retreat is about the past. Advance is about the future. Stay future-focused. Here’s what makes morale improve: ➤ A leader who keeps the team focused on the opportunities of the future rather than the pains of the past  ➤ A team that collectively creates a meaningful purpose for the work being done  ➤ A team that collectively creates values to guide their behavior ➤ A team that collectively creates a future vision that pulls people forward ➤ A weekly “Where we going?”/“How are we doing?”/“How can we do better?”/“Is it fun?” meeting. You might be saying, “Those are great, but how do we deal with the problems and fears that are pulling us down today?”

Nothing is pulling us down except how we think. Because we feel the way we think, I want to give you a one-word thinking tool. The word is “inconvenient.” It’s the best answer to the question, “What if things go wrong?” Most fears are irrational: False Events Appearing Real. Irrational fears come from irrational beliefs that you and your team create. You can erase and replace that thinking. A situation may not be what you wanted, but it’s something you can handle. We all need to remember that. Preach this “inconvenience rule” to all of your team members. Chose growth over fear and remind yourself every day: “Inconvenience—that’s something I can handle. Now I’ll get on with living.” BT Larry Wilson is a pioneer in change management, leadership development and strategic thinking. He has founded the Wilson Learning Corp., Pecos River Learning and The Wilson Collaborative. Wilson works with companies to help them “create the organization that, if it existed, would put them out of business.” His clients include major mattress manufacturers and retailers. He can be reached at larry.wilson@mac.com.

BedTimes | September 2009 |

59


Classifieds For Sale TAPE-EDGE MACHINES, MULTINEEDLE AND SINGLENEEDLE 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 apesales@charterinternet.com; Web americanplantandequipment.com. REBUILT AND RECONDITIONED MULTINEEDLE QUILTING MACHINES. Specializing in PATHE precision parts and service. Technical consultants. SEDCO. Phone 201-567-7141; Fax 201-567-5515. TAPE-EDGE MACHINES, QUILTERS & MISCELLANEOUS SEWING MACHINES. Contact Frank Carlino, U.S. Mattress Machinery. Phone 815-795-6942; Fax 815-795-2178; Email usmattmach@hotmail.com. EMCO Compustitch Quilter with Quilt Rack and Catwalk and Gribetz cutter; National serger and Table 1; Union Special serger and Table 2; Porter 1000 serger and table; Porter tape-edge. Many other miscellaneous items

For Sale available. Call Troy at 815-343-9984 for more details. We manufacture wooden box-spring flat frames and foundations custom sized to your specifications. Foundation kit options available. Wood components for flat frames, foundations, pallets or packaging, including grooved stock cut to the size you need. Assembly available for most items. Foundations can be covered and bagged to be ready to sell. Ask about your specific needs. Email inquiries to drobbins@sleepproducts.org. AUTOMATIC BORDER MACHINE 2003 Atlanta Attachment 33200A1Y90. Standard and continental; sew miters and join. Like new. $53,000. Contact Tom Metcalfe in Bluefield, Va. Phone 276-326-1898. 4 complete James Cash TAPE-EDGE MACHINES (table, carriage and 300W Singer head—complete package). $7,500 each. Call Ron Harrell at 501-843-3585 or email ron@dreamlinebedding.com.

Employment Opportunities Plant Manager. Must have 400-piece-a-day capabilities; hands-on. Must be bilingual (English and Spanish). Email resume to johnstmargar@aol.com or fax to 787-715-2191. PLANT AND OPERATIONS MANAGER. Responsible for all production, distribution, purchasing, materials and inventory management in a well-established and fast-growing factory producing 500-700 pieces per day. Candidate must have a solid track record of success and a minimum of 10 years experience as a plant/operations manager in a 500+ piece/day factory; strong background in distribution, purchasing and quality management systems; and excellent computer skills. Eastern U.S. location. Email resume to fsemer@gmail.com. SalespeoplE wanted for the U.S., Canada and SOUTH AMERICA to represent an international manufacturer of mattress fabrics. Minimum five years experience. Potentially high income. Email resume to tickingusa@yahoo.com.

Place your classified ad today!

Reach mattress industry professionals around the world with your advertising message through the BedTimes Classifieds. Rates: $3 per word for the first 100 words and $2.50 thereafter; minimum charge of $75. “Blind” box number: $50 per insertion. Ad copy and payment must be received by the first of the month preceding publication. Send ads and payment to BedTimes Classifieds, 501 Wythe St., Alexandria, VA 22314-1917. Contact Debbie Robbins for additional information. Phone 336-342-4217; Fax 336-342-4116; Email drobbins@sleepproducts.org.

60 | BedTimes | September 2009

www.sleepproducts.org/bedtimes


MARK YOUR C ALENDAR !

Stay on Track! And be prepared for the global economic recovery! �

Build and strengthen your business connections See the industry products and services you need Stay on top of current trends and industry news

www.sleepproducts.org/ISPAEXPO

ISPA EXPO...the only trade show in the world devoted exclusively to the mattress industry!

March 3-6, 2010 Charlotte Convention Center Charlotte, North Carolina USA For information about exhibiting, contact Kerri Bellias, kbellias@sleepproducts.org or call 336-945-0265.


AdvertisersIndex A. Lava & Son Co. Steve Appelbaum 800-777-5282 (800-777-LAVA) www.alavason.com

16

Amelco Industries Ltd. Costas Georgallis 82-43-877-1881 www.amelco.com

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Arch Chemicals Tom Robitaille 678-627-2335 www.purista.biz

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Atlanta Attachment C2-1, 63 Co. Inc. Hank Little 770-963-7369 www.atlatt.com

Maxime Knitting Lorne Romoff 514-336-0445, Ext. 27 514-265-8782 www.maximeknitting.com

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New England Needles Inc. Thomas Lees 800-243-3158 www.newenglandneedles.com

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P.T. RubberFoam Indonesia Andreas Janssen 62-21-53662190 www.rubberfoam.co.id

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SABA North America LLC Jim Turner 810-824-4964 www.saba-adhesives.com

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Edge-Sweets Co. (ESCO) Kevin Ryan 616-453-5458 www.edge-sweets.com

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

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

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Flexible Foam Products Inc. Michael Crowell 419-647-4191 www.flexiblefoam.com

Baron Styles Dave Williams 262-473-7331 www.baronstyles.com

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Global Systems Group Russ Bowman 954-846-0300 www.gsgcompanies.com

C3

Simalfa Darren Gilmore 973-423-9266 www.simalfa.com

17

Bloomingburg Spring & Wire Form Vickie Schwarm 740-437-7614 www.bloomingburgspring.com

54

Goldberg Supply Co. Sanford Pahk 718-321-9930 www.goldbergsupply.com

60

SpringCo. Inc. Carlos Luna 305-887-3782

55

40

38

Springs Creative Products Group George Booth 803-324-6505 www.springscreative.com

50

BLR Martin Leroux 819-877-2092 www.blrlumber.com

Hengchang Machinery Factory Wendy Wang 86-769-83307931 www.hcjixie.com

46

Boycelik Erol Boydak 90-532-274-3193 www.boycelik.com

12

Starsprings International Kai Christensen 46-513-17800 www.starsprings.com

Boyteks Tekstil AS M. Nebi Dogan 90-533-685-6041 www.boyteks.com

23

Costa International Manuel Vazquez 305-885-9761 www.costa-international.com

56

CT Nassau John Bauman 617-661-0970 www.ctnassau.com

42

Diamond Needle Corp. Abe Silberstein 800-221-5818 www.diamondneedle.com

54

Eclipse International/ Eastman House Stuart Carlitz 800-634-8434 www.eclipsemattress.com www.eastmanhousemattress.com

62 | BedTimes | September 2009

6

Hickory Springs Mfg. Co. Rick Anthony 828-328-2201 www.hickorysprings.com

2

John Marshall & Co. Ltd. Peter Crone 64-3-341-2004 www.joma.co.nz

27

Therapedic Sleep Products Gerry Borreggine 800-314-4433 www.therapedic.com

33

Kenn Spinrad Inc. Randy Weinstock 800-373-0944 www.spinrad.net

52

Thomas GmbH & Co. Pirka von der Wense 49-4761-979-138 www.lattoflex.com

51

Keynor Spring Mfg. Raymond Shao 604-267-1307 www.keynor.com

52

Tietex International Ltd. Wade Wallace 800-843-8390 www.tietex.com

C4

Latex Systems Kitti Charoenpornpanichkul 66-2-326-0886, Ext. 204 www.latexsystem.com

58

Vertex Fasteners Inc. Tom Fowler 847-329-8530 www.vertexfasteners.com

25

Latexco U.S. LLC Kevin Callinan 866-528-3926 www.latexco.com

41

Weifong Industries Sdn. Bhd. Tevin Na 603-8739-1990 www.getha.com.my

48

Lenzing Fibers Inc. Nina Nadash 212-944-7898 www.lenzing.com

10-11

Wright of Thomasville Area Account Executive 800-678-9019 www.wrightlabels.com

47

www.sleepproducts.org/bedtimes


Calendar September

Sept. 9-12 Furniture China 2009 Shanghai New International Expo Center Shanghai, China Phone 86-21-64371178 Fax 86-21-64370982 www.furniture-china.cn Sept. 9-13 Habitare Helsinki Exhibition & Convention Centre Helsinki, Finland Phone 358-9-150-9717 Fax 358-9-142-358 www.finnexpo.fi/habitare Sept. 14-17 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 Fax 702-599-9622 www.lasvegasmarket.com Sept. 18-22 Index Furniture MMRDA Exhibition Center Bandra-Kurla Complex Mumbai, India Phone 91-22-28302870 Fax 91-22-28216140 www.indexfairs.com/event_mum.asp

October

Oct. 1-4 ZOW Turkey Istanbul Expo Center Istanbul, Turkey Phone 90-212-3249610 Fax 90-212-3249609 www.zow.com.tr

One Stop Shopping for Replacement Parts

Large Extensive Parts Inventory to Meet Your Requirements

Oct. 17-22 High Point Market International Home Furnishings Center & other locations High Point, N.C., U.S. Phone 336-869-1000 www.highpointmarket.org

November

➤ Nov. 4-6 ISPA Industry Conference & Exhibition Hyatt Regency Coconut Point Resort & Spa Bonita Springs, Fla., U.S. Phone 703-683-8371 Fax 703-683-4503 www.sleepproducts.org

2010 February

Feb. 1-5 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 Fax 702-599-9622 www.lasvegasmarket.com

March

Furniture market The ZOW Turkey show will be Oct. 1-4 in Istanbul, Turkey.

➤ March 3-6 ISPA EXPO Charlotte Convention Center Charlotte, N.C., U.S. Phone 703-683-8371 Fax 703-683-4503 www.sleepproducts.org

April

April 17-22 High Point Market International Home Furnishings Center & other locations High Point, N.C., U.S. Phone 336-869-1000 www.highpointmarket.org

atlantapartsdepot.com

Atlanta Parts Depot™ 362 Industrial Park Drive Lawrenceville, GA 30045

1-866-885-5100 Atlanta Parts Depot is a division of Atlanta Attachment Company, Inc. © 2009 Atlanta Attachment Company All rights reserved. 09017040709

www.sleepproducts.org/bedtimes

BedTimes | September 2009 |

63


TheLastWord Green Idea

Little changes = big savings By redesigning products and packaging, manufacturers can significantly cut the amount of raw materials they use—and help the planet at the same time. In a special report, “Waste Not Want Not,” in its May/June issue, Mother Jones magazine offers these examples: ➤ Anheuser-Busch lowered the weight of its can lids by just .002 ounces—a move that is saving the company 20 million pounds of aluminum every year.

➤ During the past two decades, Procter & Gamble has reduced the weight of Pampers diapers by 40% and some packaging by 80%. ➤ McDonald’s cut the weight of its 32-ounce polypropylene cups, saving 650 tons of resin a year. Reducing the weight of three sandwich containers is saving 161,000 trees annually.

When movie stars and other celebrities come to fitness trainer Jackie Keller for help losing weight and getting in shape, she talks to them as much about sleep as diet and exercise. “One of the first questions I ask…is how much they’re sleeping. There are some really dramatic studies out there that link not getting enough sleep to obesity. We’re just beginning to realize that the quality and quantity of our sleep affects our appetite in ways we never dreamed it did,” the Los Angeles-based Keller tells Health magazine in its May issue. “When you are sleep-deprived, your body produces low levels of leptin and high levels of ghrelin, two hormones that affect how full you feel. I often find that once clients start getting seven to eight hours of sleep a night, they’re much less likely to overeat and the pounds just come off.”

Quotable

➤ Nokia started putting some products in smaller boxes, which saved the company $131 million in packaging and transportation costs in two years.

Passing the message along

“I would always rather work and vote for a leader who sleeps well than one who wants to be woken all the time. Having been there, I think politicians get too little sleep. They need more time to rest and think.” — Jonathan Powell, former chief of staff for former British Prime Minster Tony Blair

Raising the price point bar—high N

ot every mattress maker is lowering prices in the face of the recession. British bed maker Vi-Spring has created what it believes is the most expensive bed available to consumers—an $86,000 model, appropriately called The Majesty, that includes a handmade mattress, divan, headboard and pillows. The bed is sold exclusively at upscale retailer Harrods. The Majesty is made of 6,240 hand-nested springs in individually sewn calico pockets and is topped with layers of silk, cashmere, wool and cotton. The divan is made from

64 | BedTimes | September 2009

sustainably sourced beech and upholstered in a jacquard fabric, according to the company, which is based in Devon, England. “We spend a third of our lives asleep, so purchasing a bed is an important decision and should be seen as an investment,” says Mike Meehan, Vi-Spring managing director. “More and more customers are realizing this and realizing that only an uncompromising approach will do.” Vi-Spring promises that The Majesty will give consumers “a life-changing quality of sleep.”

If it doesn’t, The Herald in nearby Plymouth gave its readers a list of other things they could purchase for the same price—such as 1,967 low-priced single beds from Ikea, 236 round-trip flights from London to New York or a BMW M3 convertible.

www.sleepproducts.org/bedtimes


Questions are good. Answers are better. When you have a need for new equipment, you need to consider all your options. Evaluate all costs related to that machine: service issues, expected life of the machine, labor training, energy usage, factory infrastructure, material waste… GSG has answers for you - and what you hear may surprise you!

Compare all your options, then ask GSG this question:

“How can you help me?”

Q: How much faux pillowtop border material can I make in an hour? A: The FPT-1000 can sew over 3700 feet per hour.

Q: How much money can I save using a Gribetz compression mattress wrapper? A: Results may vary, but a typical factory can save over $20,000 per year in film expense.

Q: Is there a panel cutter that can cut through multiple layers? A: Yes - the PC-6 panel cutter can. This enables you to cut over 2000 queen panels per shift - with radius corners.

Q: How many units can the ME-104 two stage wrapper package in a minute? A: It’s capable of over 3 per minute.

Q: Is the GPT-1000AP Ruffler available in the US? A: It is available anywhere in the world - and it’s been one of the most productive too.

Q: What can I use to build a ‘bucket’? A: The SSB-500 Binder has been the machine of choice since the onset of single-sided bed production.

Ask your GSG representative how we can help you today. 800-326-4742 GRIBETZ INTERNATIONAL

PORTER INTERNATIONAL

954-846-0300

SYD-REN

SPUHL ANDERSON

www.gsgcompanies.com GATEWAY SYSTEMS

GSG PARTNERS: TEKNOMAC

KSM

NÄHTEC MERELLO


BedTimes Sept 2009  

The business journal for the sleep products association

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