ISPA Cost Survey Released

July 10, 2011  by in UnCategorized   

By Home Furnishings Business in Mattresses on July 11, 2011

Mattress makers had higher sales and gross profits last year, according to the International Sleep Products Association's newly released 52nd annual Cost Survey.

Compiled by the research consulting firm Industry Insights, the 2010 Survey is based on information provided by 38 U.S. and Canadian mattress manufacturers. 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.

"Helping ISPA members improve their profitability is a key part of our mission," said 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 e-mailed to Patti Clever.

For more information about industry statistics, cost saving tools, or ISPA membership, contact Jane Oseth by e-mail, or call 703.683.8371.