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IPSA Predicts Modest Growth In Mattress & Foundation Shipments

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The International Sleep Products Association (ISPA) has released the results of its first quarter 2007 sales and shipments survey of 19 leading U.S. mattress producers. These producers account for approximately 61 percent of the units shipped and 46 percent of the wholesale value of U.S.-produced mattresses and foundations. Assuming these survey participants provide a sound indicator of the entire mattress industry, results suggest that during first quarter of 2007, the U.S. mattress industry as a whole shipped approximately 8.6 million mattresses and foundations worth an estimated $2.4 billion at wholesale. Compared to the first quarter of 2006, the latest quarterly edition of ISPA’s Bedding Barometer report shows that the wholesale dollar value of mattress and foundation shipments increased 1.6 percent, unit shipments increased 0.2 percent, for a quarterly average unit selling price (AUSP) increase of 1.4 percent. Looking at only the Bedding Barometer survey sample, the 19 participating mattress producers shipped nearly 2.7 million mattresses and nearly 2.6 million foundations during the first quarter of 2007. Of the mattresses, 2.4 million were innerspring mattresses, versus nearly 292,000 non-innerspring products. The survey also shows that the mattresses and foundations covered by the sample were worth $840.4 million and $246.2 million, respectively. The dollar values reported for the innerspring and non-innerspring mattresses were $595.1 million and $245.3 million, respectively. Compared to the first quarter of 2006, unit shipments of innerspring mattresses dropped 1.4 percent, while non-innerspring unit shipments grew 7.3 percent. This quarter’s data extends a trend of declining or flat unit shipments and increasing revenues, which began in the second quarter of 2006. Although wholesale revenues did increase, as they have annually since 2001, performance this quarter was below the level of activity that the industry experienced from 2004 through mid-year 2006. Mattress industry performance reflects the broader U.S. consumer demand for durable goods, such as furniture, which continues to be impacted by macro-economic factors, especially continuing sluggishness in the housing sector and high energy prices. While not immune to general market conditions, units and dollars for high-end mattresses priced above $1,000 have remained in positive territory throughout the quarter. 2007-08 Mattress Industry Forecast In addition to releasing its first quarter 2007 report, ISPA also released its updated industry consensus forecast for the remainder of 2007 and 2008. Taking early 2007 data into account, the updated forecast predicts that unit shipments will continue to grow modestly through 2008, at approximately 1.0 percent in 2007 and 2.5 percent in 2008, with the dollar value of bedding sales predicted to grow 5.5 percent and 7.0 percent, respectively. Economic factors underlying these consensus views include a relatively stable employment picture and monetary policy, which are expected to increase growth in Gross Domestic Product for the balance of 2007 and 2008. Interest rates are predicted to level out over the next two years and the housing market is expected to turn around toward late 2007 or early 2008. “Our econometric models show that sales activity in the bedding industry is statistically linked to the larger home furnishings market and the national economy, especially to sales of new and existing homes,” said Dick Doyle, ISPA president and CEO. “The general picture is one of steady growth since 2001. While sales have flattened over the past year, we expect this to be a temporary development and it’s consistent with historical cycles. Mattress sales are expected to increase over the course of this year and in 2008.” “To help promote sales of new mattresses, ISPA continues to enhance its consumer outreach efforts,” Doyle added. “Our Better Sleep Council reached 355 million consumers across North America in 2006 with focused messages on the importance of new mattresses to sleep, health and quality of life, and it continues to support related research,” he added. All regions of the country are experiencing similar market conditions. The South continues to lead in number of units shipped and wholesale dollar value, followed by the West, the North Central and the Northeast regions. The North Central region shows the largest quarterly increases in units and wholesale revenues, while the South reports a slight decline in units and only a 0.5 percent growth in revenues. ISPA publishes the most complete and accurate data available on the U.S. mattress industry. The statistics package includes monthly reports on mattress and foundation shipments, quarterly reports that highlight innerspring vs. non-innerspring mattress breakouts, a two year forecast issued bi-annually, and an annual report of sales that includes statistical data for AUSP, size, and twenty-year trends for unit shipments and wholesale dollars, price point data and more. ISPA will also release its 2006 Mattress Industry report, providing comprehensive U.S. and international data on the mattress industry, later this week. To subscribe to these exclusive reports, visit wwww.sleepproducts.org or contact Jane Oseth at 703-683-8371, extension 1130. About ISPA: Established in 1915, the International Sleep Products Association, www.sleepproducts.org is the trade organization for mattress manufacturers and their component suppliers around the world. ISPA hosts the biennial ISPA EXPO trade show and publishes BedTimes and Sleep Savvy magazines.

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