The International Sleep Products Association’s (ISPA) 52nd annual Cost Survey sheds light on how North American mattress manufacturers are emerging from the recession. Compiled by the research consulting firm, Industry Insights, the 2010 Survey is based on detailed information provided by 38 U.S. and Canadian mattress manufacturers. The participating companies reported a modest increase in sales over 2009. Their gross profit, as a percent of sales, in 2010 was better than 2009, and higher than the average gross profit for the past 10 years.
The Cost Survey also shows improvements for some efficiency metrics. Inventory management (measured as gross margin divided by average inventory investment) was at a 10-year high, and inventory turnover in 2010 was near the 10-year high. In terms of personnel management, total company salary, wages and commissions in 2010 were essentially unchanged from 2009, but net sales per employee and gross profit per employee in 2010 was higher than in 2009. The average collection days also fell to 30, tying 2007 for the shortest collection period for the last 10 years.
The Survey benchmarks individual companies according to the size of their business, the country and region in which they are located, and their overall profitability. It also examines the impact of gross profit per employee, net sales per square foot of space, gross margin return on equity and interest expenses on the performance of “high profit” producers in the industry.
Open exclusively to ISPA members, the Survey is designed to help mattress manufacturers control costs, identify weaknesses, and gain insights into how they can improve their operations.
“Helping ISPA members improve their profitability is a key part of our mission,” noted ISPA President, Ryan Trainer. “As the economy recovers, it is more important than ever for companies to strategically analyze their financial performance and overall competitiveness. No matter where a company is located, how large or small it is, or how profitable it is today, the Cost Survey is a simple ‘yardstick’ companies can use to gauge how it is performing relative to both its peers and the more profitable parts of the industry.”
Specific questions about both the Cost and Wage Surveys can be emailed to Patti Clever of Industry Insights at pclever@industryinsights.com.
For more information about industry statistics, cost saving tools, or ISPA membership, contact Jane Oseth of ISPA at joseth@sleepproducts.org, 703-683-8371.
About ISPA: Established in 1915, the International Sleep Products Association (ISPA) is dedicated to protecting and enhancing the growth, profitability and stature of the mattress industry. As the industry’s trade organization, ISPA represents over 600 mattress manufacturers and suppliers throughout the world.
ISPA provides a wide range of services that benefit its membership. These include exclusive industry surveys and statistics, advocacy support, educational offerings, the industry’s ISPA EXPO trade show, safety research through its Sleep Products Safety Council, consumer research and education through its Better Sleep Council, BedTimes and Sleep Savvy publications, the ISPAEarth™ Industry Sustainability Initiative, and more.
To learn more, visit www.sleepproducts.org or contact info@sleepproducts.org.