Mattress Manufacturers

Industry Profile Report

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

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

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

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

Industry Profile Excerpts

Industry Overview

The 325 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 64 workers, and generates about $23 million annually.

    • The mattress manufacturing industry consists of about 325 companies which employ about 21,000 workers and generate about $8.2 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 Simmons, Sleep Number (Select Comfort), and Corsicana. Large firms may also have foreign operations.
                                    Industry Forecast
                                    Mattress Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Mar 6, 2024 - Producer Prices Flat, Employment Down
                                    • Producer prices for mattress manufacturers remained mostly unchanged in 2023 after experiencing several years of steady growth following the pandemic, according to data from the Bureau of Labor Statistics (BLS). Employment for furniture and related products manufacturers, which includes mattress manufacturers, fell by 5% in 2023 from the previous year and nearly 9% from 2019. Wages for the industry have increased almost 23% from 2019 to 2023 as manufacturers compete in a tight labor market, per the BLS. Wage growth has slowed down recently, rising only 2.5% from December 2022 to December 2023.
                                    • US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
                                    • Home sales and consumer sentiment can serve as indicators of future mattress demand. New home sales rose 1.5% in January 2024 from December 2023, and sales were 1.8% above the January 2023 estimate, according to data released by the US Census Bureau and the Department of Housing and Urban Development. Home sales continue to struggle as higher mortgage rates have slowed home sales with homeowners less willing to sell their homes, which limits the inventory for sale. According to CNBC, the Federal Reserve has increased interest rates 11 times since March 2022, although the board left rates unchanged at its meeting in December 2023. The Index of Consumer Sentiment, released by the University of Michigan and Thomson Reuters, slipped to 76.9 in February from 79 in January, showing consumers are mixed in their view of both current and future economic conditions.
                                    • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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