Rest easy: Improving disposable incomes, a stronger tourism industry and better housing markets dynamics will drive mattress sales
Los Angeles, California (PRWEB) January 11, 2012
The Mattress Manufacturing industry has lost some of its spring over the past five years due to the changing real estate market and economic volatility. According to IBISWorld industry analyst Mary Nanfelt, "like most producers of household goods, mattress manufacturers experienced growth in demand during the real estate surge until 2006, and then a decline in purchases when the housing market weakened in 2007. In addition to the unstable real estate market, mattress manufacturers have had to weather lower demand from hotels and volatile input costs". 2011, revenue is expected to increase 2.1% as disposable income rises and residential investment returns and hotels and motels purchase more mattresses as consumers increase their domestic travels
Commodity prices are expected to continue increasing from 2011 to 2016; however, they are anticipated to be less volatile. The price of oil is forecast to increase 3.2% per year for the next five years, while the price of steel is expected to grow at a gradual rate of 0.5% annually. Steel is used in the production of coiled springs and oil is used in the production of polyurethane foam and polyester. Since springs and foam are the two main components of mattresses, any change in the price of these inputs directly affects industry costs. Nanfelt believes that the diminishing volatility of inpur costs "means firms will be better able to anticipate future spending and make production changes as material costs rise."
Although the industry is anticipated to grow revenue, the number of mattress manufacturers is expected to decrease over the next five years, added Nanfelt. "Many firms suffered financially in the five years to 2011, and larger companies acquired these distressed enterprises. Industry consolidation is already in full swing, with the number of enterprises shrinking 3.0% per year over the five years to 2011. The trend is expected to continue over the five years to 2016, with an average decline of 1.7% per year. The uptake of new technology has been confined to large manufacturers. As such, other enterprises have been trying to grow through consolidation, which is symptomatic of a mature industry." In the past five years, many of the larger participants have consolidated operations to reduce costs, and increase production and business efficiency. Major players in this industry include: Sealy Corporation, Serta Corporation, Simmons Bedding Company, Tempur-Pedic International and Select Comfort Corporation.
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The Mattress Manufacturing industry produces mattresses and bases for retailers, wholesalers, consumers and the export market. The industry produces innerspring, box spring, and non-innerspring mattresses. Non-innerspring mattresses include beds made from rubber and latex, and waterbeds. This industry does not include air mattresses.
Mattress Manufacturing industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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