Bottom row, from left: Kim Cobb, David Binke, Bryant Looper.
2021 has been frenzied and unpredictable, industry leaders say. They want more predictability in 2022 but hope to stay just as busy
Whew! We are nearing the end of 2021: Have you had a chance to catch your breath yet?
Suppliers and manufacturers say bedding sales were brisk throughout the year, the second of the Covid-19 pandemic. Consumer demand for sleep products remained strong as shoppers, many flush with stimulus cash, continued 2020 trends of investing in their homes, even as unrestricted travel and the return of large events like sports and concerts created competition for consumer dollars — a first since the initial outbreak of the coronavirus.
But it wasn’t all positive balance sheets, not with Covid-19 still circulating and mutating. The industry struggled to get necessary components and materials, part of a breakdown in the global supply chain that caused backups at ports and increases in shipping and freight costs. Bedding industry suppliers and manufacturers also struggled to find enough workers to keep churning out mattresses and accessories. That too was part of a broader pattern — a worker shortage caused by a host of factors, including more generous unemployment benefits, Covid-19 outbreaks, lack of child care, and what some analysts have called The Great Resignation as workers have taken early retirement or started new careers.
BedTimes spoke with a handful of bedding industry leaders to get their assessment of 2021 and their predictions for 2022. Looking ahead, they tell us they expect the supply chain kinks to work themselves out, and say they’ve revamped their operations to make them more resilient until that happens. They are looking forward to the opportunities a new year brings, including the return of ISPA EXPO, the largest trade show devoted to the bedding industry, which will be March 8-10, 2022, in Orlando, Florida. Read on for more insights into the year that was and the year that will be
What word or short phrase would you use to describe 2021?
“Extraordinary times.”
— Richard Diamonstein, managing director, and Richard Fleck, president, Paramount
Sleep Co., an independent bedding producer based in Norfolk, Virginia
“Unexpected! Both 2020 and 2021 presented our industry with unparalleled challenges.
We were hoping that 2021 would be significantly improved over 2020, but supply chain challenges remain.”
— Melanie Huet, chief commercial officer and chief marketing officer for Serta
Simmons Bedding LLC, a mattress major headquartered in Atlanta
“Positively hectic; limitless opportunity. We’re experiencing tremendous growth through our retail expansions, as well as through our existing retailers, all while navigating global supply chain shortages. We’re all having to work extra hard to keep up with the growing momentum, but these are the types of growing pains a manufacturer strives for.”
— Bryant Looper, vice president of national accounts for Intellibed, a bedding producer based in Salt Lake City
“Very unpredictable, as well as nerve-wracking.”
— David Binke, chief executive officer of King Koil, a mattress manufacturer
headquartered in Avondale, Arizona
“ ‘Ingenuity is the mother of invention.’ I love the word ingenuity, especially this past year as we have had to dig deeper creatively, being more focused and having the clarity and skills to invent products and processes to help navigate the challenges we have been facing in manufacturing.”
— Kim Cobb, vice president of Wright Global Graphics, a provider of printing and marketing solutions based in Thomasville, North Carolina
What trend, economic condition or event most impacted your business this year and why? How did you respond?
“The increased demand was the greatest impact to our business this year. We increased our footprint by 50% and increased our employee base by 25%. We also were diligent with our retail partners in prioritizing their delivery needs.”
— Binke, King Koil
“As a supplier to the industry, we saw changes in order patterns, mostly brought on by supply chain issues the manufacturers were experiencing. We responded by being more flexible in our production schedules and found creative solutions with alternate materials that were readily available.”
— Cobb, Wright Global Graphics
“Without question, supply chain issues presented the most significant challenges. Our executive, operations and procurement teams acted swiftly to identify existing suppliers (capacity) and new suppliers (alternative resources) to ensure SSB could maintain and improve on the on-time, ship-complete commitments to our retail customers. The growing pains were there, but thanks to the efforts of many, production support has improved dramatically over the last six months.”
— Huet, SSB
“The trends were multifaceted and included raw material supply shortages, rapid inflationary price escalations and labor shortages. To address raw material shortages, we significantly diversified our supply chain from our pre-pandemic suppliers, including numerous international suppliers. We had to find more innovative and responsive suppliers for our quality/value needs. Being in Norfolk, Virginia, gives us a significant advantage, having expedited access to port facilities. Most of our imported components come directly into Norfolk, 10 minutes from our factory. To support these efforts, we have added additional warehouse space. To address labor shortages, we have worked diligently with state and local agencies to find new employees. Our competition for labor now includes Target, Amazon and other major retailers. Labor rates and benefits are an ever-changing landscape.”
— Diamonstein and Fleck, Paramount Sleep
Supply chain problems that began early in the pandemic continued into 2021. How would you describe the current condition of the bedding industry supply chain?
“We’re definitely on the back end of the industry supply chain shortages. Like many manufacturers, we were initially forced to navigate a host of supply chain complexities and delays, however, since we manufacture Gel Matrix (the main component of our beds) ourselves right here in the USA, we were fortunately able to get through the first half of this year relatively unscathed.”
— Looper, Intellibed
“The supply chain is more stable for now but we’re waiting for the other shoe to drop.”
— Binke, King Koil
“Better but still challenging. Challenges will continue well into 2022. Our focus on supply diversity has allowed us to deliver in our normal delivery cycle of a week to 10 days with very little interruption. Our existing and new customers have been very pleased with our service commitments.”
— Diamonstein and Fleck, Paramount Sleep
“Many of the manufacturers were having supply chain issues months before we saw it in our raw materials. We took a proactive position the first of the year to put in smaller orders, more frequently to keep materials flowing to our facilities. We started seeing some direct supply chain issues at Wright Global Graphics in mid- to late summer.”
— Cobb, Wright Global Graphics
“Challenges remain but there have been strong improvements. The primary difference in 2021 versus 2020 is that the supply shortages are inconsistent. This causes us to continually replan production as different materials become available or unavailable. Our focus remains on both short-term resolution and long-term planning to reduce and/or eliminate the impact of events in the future.”
— Huet, SSB
What changes has your company made to manage and address supply chain delays and shortages?
“We’ve been tracking and taking inventory more regularly and placing orders more often, which has helped to manage unexpected delays, manage production and meet promised ship dates to our customers.”
— Cobb, Wright Global Graphics
“We diversified our supply chain partners and we made significant procurement decisions as opportunities arose.”
— Binke, King Koil
“We have been fortunate in that our supply chain issues were much smaller and less impactful than for other manufacturers. That being said, we’re now being as proactive as possible with our manufacturing and raw material partners when it comes to forecasting. In the long run, we believe this period of uncertainty has made us stronger and more efficient from a manufacturing perspective.”
— Looper, Intellibed
The Covid-19 pandemic may finally be waning. What pandemic-related changes will you be carrying forward in your business?
“All of the learning that improved on-site safe work conditions has led to improved quality environments for our SSB teams, both nationally and internationally. People are our greatest asset, and there will be continued focus on them now and in the future.”
— Huet, SSB
“Like many, we are excited to return to a sense of post-pandemic normalcy, but this pandemic has helped us to sharpen our focus on our field reps’ safety and well-being. We’ve become much more efficient in our travel and store visit schedule and have worked hand in hand with our retailers to make sure we continue to provide top-notch training in a way that ensures everyone’s safety. Virtual trainings have become a new normal in the post-Covid era and, although there’s nothing like an in-person product training, it’s nice to now have digital backup plans for meetings and trainings when need be.”
— Looper, Intellibed
“Since the onset of the pandemic in early 2020, our marketing efforts shifted toward more social media and our face-to-face meetings with customers moved to regular Zoom and Teams meetings. We found this to be an effective way of staying in touch with the industry.”
— Cobb, Wright Global Graphics
“We have continued a mandatory mask policy for those working in close proximity, ongoing enhanced cleaning of high-touch surfaces, education, bonuses for vaccinations, and a focus on state-of-the-art new machinery for higher efficiencies.”
— Diamonstein and Fleck, Paramount Sleep
“We will always be cautious with our employees’ health and safety.”
— Binke, King Koil
What are the biggest challenges or threats facing the bedding industry in 2022? How can they best be addressed?
“A big challenge in 2022 for the industry will remain the availability of raw materials and managing the rising shipping costs and delays.”
— Cobb, Wright Global Graphics
“The industry will need to continue to rapidly adapt to new trends. Consumers’ preferences for where they want to shop continue to evolve. We need to be ready for another year of disrupted supply chains and a possible slowdown of demand in the category.” — Huet, SSB
“Supply chain issues will still be prevalent, as will employment issues.”
— Binke, King Koil
“With the ever-present rise in online shopping, our industry needs to be able to continue to offer retail customers a compelling reason for consumers to visit their brick-and-mortar stores. Intellibed offers our retail partners a new and innovative story that is not only compelling, but also aspirational. Our beds are designed to inspire RSAs and consumers alike to focus on improving their lives by investing in deep and meaningful sleep.”
— Looper, Intellibed
“Labor will continue to be a significant challenge, and one that we wrestle with daily. A good recruiting source is essential. Also, we have seen a major change in transportation options and reliability. We have several go-to companies that have proven to be reliable, in addition to our fleet of trucks. This has also been important for inbound raw materials to manage just-in-time deliveries.”
— Diamonstein and Fleck, Paramount Sleep
What is the biggest opportunity you see for the bedding industry in 2022? How will your company meet it?
“Keeping up with greater demand. We will be nimble in our ability to expand as needed.”
— Binke, King Koil
“Continued growth in the premium areas, something that we have focused on for many years. We can elevate the consumers’ sleep experience and deliver on our promise. Price has not been our focus, but rather the life benefits a quality mattress can provide. We truly feel that our industry can be viewed in a much more positive light with the consumer and not just focused on price.”
— Diamonstein and Fleck, Paramount Sleep
“Products made domestically will continue to be a big opportunity for the bedding industry. As a supplier, we are asked more than before if our products are made in the USA. We have new opportunities with companies that require domestically made products, and we have been promoting that with our customers on social media.”
— Cobb, Wright Global Graphics
What has you most optimistic or excited about the business environment in the year ahead?
“There has been a strong shift in health and wellness within our category over the past few years, and it shows no sign of slowing down.”
— Looper, Intellibed
“ISPA EXPO 2022 can’t come soon enough. Wright Global Graphics has been busy with new product development and creative alternatives in branding solutions, and we have a high level of excitement and enthusiasm for getting these products in front of our customers.”
— Cobb, Wright Global Graphics
“Our continued ability to raise the bar in ultra-premium and luxury products.”
— Binke, King Koil
“Continued opportunity for sales growth and manufacturing efficiencies. And we’re looking forward to ISPA EXPO 2022 in Orlando!”
— Diamonstein and Fleck, Paramount Sleep
Can’t Sleep Without It
In frenetic, turbulent times, it can be tough to get a good night’s sleep — even for people who spend their lives thinking about sleep products. So, we asked our panel: What sleep accessory (besides a mattress) helps you to sleep well at night?
“We follow our sleep doctor’s advice: great pillow, great sleep environment, proper exercise and diet.”
— Richard Diamonstein, managing director, and Richard Fleck, president, Paramount Sleep Co., a bedding producer based in Norfolk, Virginia
“My Sleep Genius base by Intellibed has become a must-have when I fall asleep at night. The sound therapy technology that comes with our bases uses technology originally developed by NASA to help naturally induce drowsiness in space. It literally feels like I’m being rocked to sleep every night when I activate my Sleep Genius app, and the music plays through the built-in speakers under the base.”
— Bryant Looper, vice president of national accounts for Intellibed, a bedding producer based in Salt Lake City
“My sleep accessory is living a balanced life, and being thankful for what I have and where I am. And it helps to have the perfect mattress and pillows for a restful night — and the dog that sleeps in the bed, too.”
— Kim Cobb, vice president of Wright Global Graphics, a provider of printing and marketing solutions based in Thomasville, North Carolina
