Mattress Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 320 mattress manufacturers in the US produce mattresses and related sleep products. Primary products include innerspring and foam mattresses, sleep systems (flotation and adjustable), sleep sofa mattresses, and foundations. Mattresses are sold primarily through licensed dealers, company owned stores, furniture stores, department stores, wholesale clubs (Costco) and manufacturers’ websites.

Competition from Low-cost Imports

Domestic mattress manufactures compete in the US market against imports that are often priced at below-market values.

Competition from Smart Beds

The majority of firms produce traditional mattresses, but are experiencing increased competition from health and technology conscious customers moving to smart beds that biometrically track sleep.

Industry size & Structure

A typical mattress manufacturer operates out of a single location, employs 67 workers, and generates about $22 million annually.

    • The mattress manufacturing industry consists of about 320 companies which employ about 21,600 workers and generate about $7 billion annually.
    • Customers include furniture and mattress stores, hotels and motels, healthcare facilities, furniture manufacturers (sofa beds), furniture wholesalers, wholesale clubs (Costco) and department stores, and the US government (shelters, public housing, military barracks).
    • The industry is concentrated with the 20 largest firms representing 76% of industry revenue.
    • Large companies include Tempur-Sealy, Serta Simons, Sleep Number (Select Comfort), and Corsicana. Large firms may also have foreign operations.
                                    Industry Forecast
                                    Mattress Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 28, 2022 - Mattress Demand Slows
                                    • Some mattress manufacturers are reporting softer sales than early in the pandemic when many makers of big-ticket furnishings benefitted from increased consumer spending on home enhancements, according to The Wall Street Journal. In the spring of 2022, some mattress companies, including Sleep Number Corp. and Tempur Sealy International, reported weakening demand for their products. Consumers may be pulling back on spending on pricey items amid rising inflation and the economic uncertainty brought on by Russia’s invasion of Ukraine. To counter the drop in demand, some companies are reducing marketing expenses and delaying new product launches.
                                    • China’s manufacturing output decreased to its lowest level in more than two years in March as its zero-tolerance approach to the pandemic forced factories into temporary shutdowns. Domestic mattress manufacturers compete in the US market against imports that are often priced at below-market values. The Caixin/Markit purchasing managers’ index dropped from 50.4 in February 2022 to 48.1 in March. A reading below 50 suggests output is contracting rather than expanding. In March, new orders and production fell to their lowest levels since February 2020 as cost and input inflation reached a five-month high, increasing worries about stagflation.
                                    • Mattress manufacturers may have difficulty acquiring sufficient raw materials due to pandemic-related logistical issues. The biggest hurdle for furniture manufacturers is the unpredictability of ocean shipping and port congestion, according to FTI Consulting. Some logistics industry experts suggest that supply chain disruptions will persist for the remainder of 2022 and possibly beyond. According to Retail Dive, several furniture manufacturers and retailers have worked to diversify their supplier base to reduce delays and their reliance on China. Some firms have found alternative suppliers in Vietnam, India, Turkey, and Mexico and other Latin American countries.
                                    • Manufacturers that produce high-end mattresses with advanced features such as temperature control and position adjustability may face additional supply chain headaches from a persistent global semiconductor shortage, which is likely to worsen due to the war in Ukraine. By some estimates, Ukraine accounts for about 90% of the world’s neon used to make lasers critical to chip fabrication. Sanctions on Russia by the US and its allies are likely to tighten global supplies of palladium, another key chip input. According to the Observatory of Economic Complexity, Russia produces about 28% of the world’s palladium.
                                    • Seasonally adjusted US retail sales for furniture and home furnishing stores rose about 0.6% in March 2022, according to the US Census Bureau. On an unadjusted basis, furniture and home furnishing store sales grew 4.2% in March compared to the same month a year earlier.
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