HIGH POINT — Top bedding producers generally say the industry will enjoy a strong year in 2021.
“Strong” and “very strong” were some of the predictions the producers shared with Furniture Today as they looked ahead to a new year. One producer said he sees a “bull market” in 2021. Another predicts a “solid” year.
The producers cited several reasons for their optimism:
- Consumers’ current focus on the home will continue, and that will bring more spending on home products like mattresses.
- Demand for better goods remains on the upswing, a development that should translate to more sales of higher-end sleep sets.
- Pent-up demand for mattresses, unleashed earlier this year after retail lockdowns, continues to benefit the industry, and the industry takes that momentum into the new year.
- An antidumping campaign targeting seven countries should lead to a slowdown in mattress imports, thereby benefiting domestic bedding producers.
Furniture Today asked these leading bedding producers for their business outlooks for 2021:
Nick Bates, president
Spring Air International
I expect 2021 to be a strong one for the industry, both in terms of unit volume and dollars. We will close out this year very strong, and I suspect some of that velocity will spill over into next year as many of the COVID-related economic indicators will remain the same into the first quarter or two of 2021.
There will be an additional boost from a widely expected stimulus after the election and some of those dollars will continue to go to home furnishings.
The industry change is going to come from a further shift of retailers away from the top five brands, which have been struggling to meet supply agreements. Those retailers have been flocking to alternative manufacturer sources such as Spring Air because our factories have the capacity to supply them.
When you add our new customers along with increased sales from existing customers, you have a very bright picture of the future.
David Binke, CEO
King Koil
Our industry will be extremely buoyant next year, and in particular, the moderate to higher luxury segment where King Koil has put down anchor will do well. I anticipate we will still see people working from home, spending less on travel, clothing and commuting costs, and spending more on their homes.
The upper-end consumer is generally more inconvenienced by COVID disruption, but they are still working, albeit from home. That is not only leading to more growth, but growth at the higher ends of the market because people who can are buying better goods.
The industry will still struggle with component shortages and we will need to keep a careful eye on suppliers trying to raise prices.
Denny Boyd, president
Boyd Sleep
The consumer appetite for mattresses will continue to be strong through 2021 for both online and in-store retailers. Market share will continue to increase for online retailers. Brick-and-mortar retailers will continue to maintain their business volume due to overall market increases. Material price increases and a reduction of imported mattresses will cause increases in the average unit cost to the consumer.
Boyd Sleep is well-positioned for growth in the mattress market with product innovations in our Nautica and Thomasville brands.”
Gerry Borreggine, CEO
Therapedic International
2021 should continue with the gains many manufacturers enjoyed in the second half of 2020. Coming off eight to 12 weeks of shutdown, the industry rebounded strongly in the back half of the year, largely as a result of significant pent-up demand. That momentum, coupled with the recently instituted tariffs on imported goods, puts U.S. manufacturers in a position to enjoy strong gains in 2021.
Scott Burger, CEO
Classic Brands
The bedding business is continuing to grow substantially, both in stores and online. From a sales perspective, we’ve seen people invest more in their homes during the pandemic, and we believe this trend will continue into the new year.
Success in the 2021 retail marketplace will depend on the application of innovative solutions to create evolved and safer shopping experiences. We saw an early shift to e-commerce in 2020, with turnkey solutions taking on added importance as American retailers were faced with closures or decreased foot traffic, and we believe that e-commerce will only continue to expand from here, whether that’s 30% over five years or an even greater percentage.
Stuart Carlitz, CEO
Eclipse International
In my opinion, business will remain strong for the next 12 to 24 months, however, not necessarily as strong as it has been most recently.
There has been a shift in consumerism with people working from home and traveling less. Consumers are no longer spending as much money on travel and entertainment, and instead are focusing on their homes and home improvements. They are spending on new home furnishings, new mattresses, home renovations and various home goods.
The growth in e-commerce has been unprecedented for all consumer items. The pandemic has boosted the Internet years ahead as a means of making purchases. Whether COVID-19 is settled in 2021 with a vaccine or not, American consumers today realize their one true safe haven is their home. American consumers are not going to forget about COVID-19 for decades to come. This in itself will increase consumer spending on home furnishings.
The ongoing antidumping investigation throughout most of Asia is bolstering retailer demand for American-made products, and Eclipse International’s factories coast-to-coast have expanded capacity in order to keep up with the demand.
Mike McQuiston, president
Symbol Mattress
2021 will be full of challenges and opportunities. I believe we will slowly get the COVID-19 pandemic under control, and some sense of normalcy will finally return. The consumer will start to get more comfortable, thus helping overall retail store traffic. I see mattress demand remaining steady through the first quarter of 2021, possibly a little longer. Depending on additional stimulus monies, volume could be even better.
After that, we should experience some easing in demand. Consumers have spent the past nine months investing in their homes, as they spent less on vacations, eating out and fuel. That market anomaly will likely go away and more discretionary income will be put toward travel and leisure activities.
Ron Passaglia, president
Restonic
Restonic is on target to wrap up the year with a strong finish. As the Scott Brothers mentioned at the Furniture Today Bedding Conference, we are in the middle of a home renaissance. Comfortable and healthy are at the forefront of our customers’ purview, and we believe that demand will continue to grow throughout 2021.
The ramp-up speed will depend upon the availability of raw materials and the labor force to meet these growing consumer needs, with the potential to create the perfect storm of consumer wants and needs. Because of Restonic’s focus on delivering exceptional service to regional markets and digital marketing to continue to reach new consumers, we are well-poised to meet the demand and support our retailers in this new world.
Shaun Pennington, president
Diamond Mattress
I think 2021 will be a strong year. Many retailers are predicting an increase of 5% to 10% over 2019 since they believe the spike in demand we are seeing now may level off in the new year. With that and COVID-19 continuing into 2021, I see the overall home goods sector remaining strong.
The antidumping push, however, could have an impact for domestic producers, so for Diamond Mattress, I am projecting a strong year, up 5% to 10%.
Bryan Smith, CEO
Southerland
Sustained by the boom in consumer demand from the past six months brought on by the COVID-19 lockdowns, the first half of 2021 should be very strong for the mattress industry. Consumers will continue to spend on their homes, and mattresses and home furnishings are netting the rewards.
The second half will probably be flat — maybe slightly up — compared with this year, but that is largely because we are seeing such extraordinary demand now. The second half of 2021 will be hampered by ongoing material price increases from foam and springs, and the labor market remains extremely tight. U.S. bedding manufacturers will benefit from the antidumping investigation that is underway by the Department of Commerce.
Jon Stowe, managing director
E.S. Kluft & Co.
Although 2020 has been a challenging year for many, I believe we can expect a bull market in 2021. We’re all aware that COVID-19 disrupted world economies, but I estimate total market sales to grow more than 20% vs. 2020. This will be driven by increasing demand for luxury products, new product placements and an expansion of new retail partners.
Michael Thompson, CEO
Corsicana Mattress
Until a vaccine is fully available, we believe many consumers will likely remain working from home and continue to spend their disposable income on home furnishings, including mattresses, as they have been since the second quarter of 2020. Once life resumes to some sense of normalcy, we anticipate a pullback on spending and suspect that will likely occur in the second or third quarter of next year. Notwithstanding, we believe significant industry changes will perpetuate, including a continued rise in boxed bedding, online shopping, raw material supply challenges and a consumer cost conscious temperament.
Scott Thompson, CEO
Tempur Sealy International
Clearly, 2020 is going to go down as one of the strangest years in most of our lives. Until we get this COVID-19 issue behind us, it is difficult to give guidance.
Robust sales trends that we’ve experienced recently have exceeded our expectations, which has resulted in significant earnings, but we believe that the earnings potential was, at the same time, muted by operational inefficiencies from COVID-19-related measures and supply constraints. When I look at the totality of the picture in 2020, my belief and that of the executive team, is while 2020 is going to be a record year in sales and adjusted EBITDA, 2021 will be another solid growth year for Tempur Sealy.
"furniture" - Google News
December 21, 2020 at 06:36PM
https://ift.tt/3mFa2Vu
Top bedding producers see strong year in 2021 - Furniture Today
"furniture" - Google News
https://ift.tt/2YLhHcA
No comments:
Post a Comment