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Politically Incorrect

By Home Furnishings Business in on July 2012

€œBringing jobs home€ and €œmade in America€ are themes that politicians are big on touting in the wake of the recession.

President Obama even hosted Lincolnton Furniture CEO Bruce Cochrane in the White House, praising his company for creating jobs in the United States. And while he had a nice time, from his comments at the Home Furnishings Industry Conference in May, it was clear Cochrane believed the president was playing to the electorate.
Imports have come under fire for safety and federal compliance reasons, but of late it seems a lot of folks think they€™re un-American€”even as they wear a shirt made in China or drive a car made in Korea.
And while it€™s unlikely the furniture industry will want to put itself through another anti-dumping struggle, the government€™s been known to take import-limiting action on its own.

A HOSTILE CLIMATE

€œWe€™re in a climate that€™s hostile to imports,€ said Erik Autor, vice president and international trade counsel for the National Retail Federation in Washington, D.C., which keeps a particular eye on products that carry high duties such as textiles, apparel and footwear. €œThe Obama administration talks about domestic manufacturing and how it€™s hurt by imports. That€™s reflected in their stance on trade negotiations like those for the Trans-Pacific Partnership.€

(Autor was referring to the multilateral free trade agreement whose purpose is to liberalize the economies of the Asia-Pacific region.)

€œIt€™s not part of the Obama administration€™s trade policy to make it easy to import,€ Autor continued. €œTo the extent folks in the administration talk about €˜imports,€™ it€™s usually preceded by words like €˜illegal€™ and €˜unfair.€™€

Jerry Epperson, managing director, Mann Armistead & Epperson, Richmond, Va., noted that many retailers are keeping the import issue in front of consumers.

€œWe have stores making a competitive statement selling American-made product,€ he said. €œTake the Amish furniture coming out of Ohio. It is a lot bigger than many of us realize. It€™s solid wood, it€™s very nice and it€™s helping fill some of those retailers€™ slots.€

He noted that €œMade in the USA€ has been a strong promotional theme for upholstery manufacturers.

€œFor 15 years, all you could say is €˜imports are showing gains,€™ and now there€™s some divergence,€ Epperson said. €œPeople feel the fact that domestic manufacturing is growing is a positive sign.€

ALL HAT NO CATTLE?
Despite its public stance, there might be more bark than bite in the Obama administration€™s position on imports.
€œWhile there€™s a lot of anti-import rhetoric, there hasn€™t been a lot of movement,€ Autor said. €œThe rhetoric and the reality don€™t necessarily jive.
€œOn one hand, he hasn€™t wrought a lot of damage, aside from the (duties on tires from China in 2009). I think he would prefer to do nothing on trade policy, because I don€™t believe he thinks it€™s a political winner.€

Autor called the administration€™s stance on negotiations such as the TPP €œthe illusion of having a trade policy.€ While it hasn€™t taken a lot of actual anti-import action, he added that Obama€™s words do have an impact on the public€™s opinion of what is the lifeblood of many consumer-goods categories.

€œHis rhetoric is disappointing and sets an anti-import tone,€ he said. €œIt validates the popular but incorrect view that imports are just bad.

€œImports actually create millions of jobs, and not just at retail. You have transportation, dockworkers and many others who depend upon trade and imports for their jobs.€

He added that U.S. manufacturers often have to import components for the goods they sell overseas and that domestic producers can compete without regulating free trade.

€œManufacturing wages have rolled back in this country, and labor rates have risen significantly in China,€ he noted. €œTransportation costs have further offset China€™s labor advantage.€

KEEPING WATCH
Autor had been hearing rumblings of other furniture-related anti-dumping actions, but that seems to have settled down. He noted that the wood bedroom anti-dumping petition ended up with mixed results when it comes to increasing domestic products€™ share of the U.S. market.

€œThe really significant manufacturers in China don€™t pay as much€”if any€”duty,€ he said, €œand there€™ve been significant modifications to the extent of the duties through scope reviews and sunset reviews.€

In his experience, Autor said trade cases are usually counter-cyclical.

€œWhen the economy turns south, you see an uptick in trade cases, but I€™ve been surprised at how few there€™ve been the past few years,€ he said. €œI think the reason is that most companies€”big or small, agricultural or manufacturing€”operate in a global supply chain, so it€™s against their interest to put big limits on importing.€ HFB

Homeward Bound?

By Home Furnishings Business in on July 2012

Domestic manufacturers believe retailers looking to keep inventories under control and rising production costs in Asia have created a window of opportunity for their products, particularly in case goods.

Last year, domestic wood shipments increased 2.5 percent, while imports fell 2.2 percent, according to the U.S. Department of Commerce. While the first quarter of 2012 saw import wood growth of 5.8 percent outstrip domestic€™s 2.3 percent growth, last year marked a change.

And vendors are gearing up to meet anticipated increase in demand for domestic goods. In January, bedroom furniture maker Vaughan-Bassett announced an $8 million investment in its Galax, Va., manufacturing operation aimed at increasing capacity by 50 percent. And at April High Point Market, American Drew introduced three collections under its Heritage Home umbrella, each with bedroom slated for production in the United States.

BEHIND THE NUMBERS
Jerry Epperson, managing director, Mann Armistead & Epperson, Richmond, Va., said the domestic gains were impressive because imports were so strong the year before.

€œIn 2011 we saw domestic gains in wood and upholstery that exceeded import growth, but the year prior import wood was up 14 percent and import upholstery was up 13 percent,€ he said. €œIf you look at the fourth quarter, (import) upholstery was already bouncing back.€

In upholstery, Epperson noted China still dominates leather.

€œThe Chinese own the leather market except for the high-end or custom business, which mostly remains with Italy or the U.S.,€ he said. €œThey€™re making the long production runs with leather. Seventy percent of total Chinese upholstery here is leather.€

He thinks U.S.-made wood shipments will continue to grow, but it€™s going to be mainly the re-emergence of existing facilities and filling production there versus opening new factories.

€œUpholstery isn€™t as capital intensive as wood, and you can open an upholstery plant pretty quickly,€ he noted. €œIt doesn€™t have a lot of the OSHA and EPA rules wood has.€

RETAILERS€™ TAKE
With so much wood production going offshore in the past decade, can retailers count on a steady stream of domestic goods? It hasn€™t been a problem at Acton, Mass.-based Circle Furniture.
€œOur niche has always focused on domestic goods,€ said Richard Tubman, CEO. €œEkornes would be the big exception.€
As a higher-end retailer, he noted that Circle€™s at an advantage when it comes to sourcing domestically.
€œIn the better end, we have a lot of Vermont and New Hampshire manufacturers that are small but have very good product,€ Tubman said. €œIf we went after lower price points, we would have a harder time filling the floor. To at least some of our customers, and hopefully a lot, made in America is very important.€
Imports might dominate middle price points for wood, but cash-strapped retailers at those levels such as Woody Whichard at Midtown Furniture & Mattress Superstore are taking a harder look at domestic goods.
There are two reasons, said Whichard, owner of the Madison, N.C., store, and one has to do with the front end.
€œThe consumer is coming in asking where the products made a lot more than they did six years or so ago,€ he said. €œThey make a point of asking our salespeople€”it€™s a lot more important to them now. A few years ago, everyone was doing well and as long as the price was right we were all happy. Things are tougher now, and there really is a sense that they want to keep things in America.€
And domestic is easier on Whichard€™s pocket book and easier to flow.
€œOn the back end, right now I can€™t afford to buy in containers,€ Whichard said. €œBringing in 10 or 12 of one suite just isn€™t feasible for a one-store operation.
€œAlso, I haven€™t been able to free up the capital to make that big purchase, and lately the pricing hasn€™t been much better.€
Two years ago, an import suite comparable to a Vaughan-Bassett group wholesaling for $800 had a landed cost of $550 for Whichard. Landed containers of those groups now run him $600 to $650.
He€™s seen similar increases for Midtown€™s imported promotional goods, where the extra cost has a bigger impact on margins than more expensive product.
€œThe domestic producers have maintained their price structure while the imports are increasing,€ Whichard said. €œI have lower overhead on storage with domestic goods. Vaughan-Bassett has no minimum order, and our minimum for Harden is $1,200. Right now cans are costing me $12,000 to $15,000. The turnaround on domestic cases is two to three weeks, and import turnaround is 45 to 90 days.€
That said, Midtown doesn€™t carry a whole slew of domestic case goods.
€œVaughan-Bassett is the only (domestic case company) I€™m using at my middle price points,€ he said. €œThey€™ll retail up to $3,699 to $3,899 for suites. I use Harden on my promotional end€”those groups retail around $499.€

GEARING UP
Lincolnton Furniture, Lincolnton, N.C., has developed a niche in solid wood furniture using traditional joinery produced on state-of-the-art machinery. President and CEO Bruce Cochrane likes the company€™s prospects. He believes domestic producers have a chance to steal a march as importers adjust to changes in Asian source countries, which he sees as a factor driving his business right now.
€œChina has moved away from offering generous incentives to produce for western markets,€ he said. €œThey€™re focused on their domestic market.€
A burgeoning consumer market in China also will increase competition for capacity elsewhere, he added.
€œChinese consumers are going to be buying products from other countries in Asia,€ he said.
While Cochrane acknowledges a lot of production is moving out of China, there€™s a learning curve.
€œIf you take all the countries in Asia, they still have maybe one-fifth the capacity of China; and those other countries aren€™t going to have the kinds of incentives you used to see in China, and Chinese workers are the most productive in Asia,€ he said. €œPlus, when you have products moving from one country to the other, there an opportunity for miscommunication is high. You have the makings of a product engineering nightmare. Don€™t get me wrong, so people have figured that out, but a lot of others are having to shift quickly.€
Ralph Scozzafava, CEO of Furniture Brands International, St. Louis, doesn€™t know how much more imported product the market can absorb.
€œWe€™ve reached a point with case goods where we€™re at a saturation point of products coming in from other countries,€ he said, though he added that going back to domestic market share levels of a decade ago probably isn€™t in the cards.
FBI€™s Drexel Heritage and Hickory Chair divisions, in particular, rely considerably on domestic case goods; and Scozzafava added that wood line has a domestic component, and Broyhill still has some domestic cases.
He noted that big companies such as Ashley and Ethan Allen still makes a lot of case goods here.
€œWhy? The supply chain is the big piece,€ Scozzafava said. €œYou can manage your production, and you can control your inventory levels much more easily.€
He noted advantages in the store, as well.
€œAs a retailer, you don€™t have to tie up all that money in inventory, and you don€™t face as many discount issues in getting rid of product that might not have sold,€ he said. €œIf you can free up your cash and get a better margin, that€™s good for a business.€

BARRIERS TO GROWTH
While there€™s been an uptick, there are limiting factors on domestic case goods growth.
€œWe€™re essentially limited to the capacity in the remaining factories,€ Epperson noted. €œPeople like Vaughan-Bassett, Linwood and Lincolnton Furniture will grow into their capacity. You have to remember Vaughan-Bassett didn€™t close some of their capacity€”they mothballed it, ran enough through to keep their permits open.
€œOnce that capacity€™s used, you€™ll have to see if it€™s economically feasible to build new green-field plants, and I don€™t see that happening.€
It€™s just not easy to build a new case goods plant. That€™s one reason Jack Hawn, president and CEO, Zenith Global Logistics, Conover, N.C., hasn€™t seen a big increase in the amount of domestic wood his company handles.
€œI am familiar with a company that was looking at building a new wood factory, but the permits were too complex,€ he said. €œWe aren€™t seeing any big gains in wood.€
Patrick Smith, national sales manager at Watkins Shepard, echoed that take.
€œDomestic case goods production has seen very little increase and in our opinion that will continue unless some of the strict regulatory issues are relaxed enough to make domestic manufacturers more competitive,€ he said. On the other hand, €œDomestic upholstery production has increased due to a number of reasons, i.e. ocean transportation cost increases, time to market and consumer awareness and desire to buy €˜Made in America€™ items when available.€
Cochrane at Lincolnton Furniture believes the biggest drag on increased domestic production is that furniture remains a category not many lenders are willing to bet on.
€œThe greatest barrier is access to capital, which is almost impossible considering the oversight of banks these days. They have the money to loan, and that€™s how they make their money, but it€™s difficult to make a loan for a start-up (furniture manufacturer).
€œWhat we need is a cohesive government program to address these issues, be that through grants or loan guarantees. States like North Carolina are more aggressive from a grant opportunity standpoint with things like the Golden Leaf Fund.€
Environmental requirements also demand extra training. Integrating water-based finishes into the manufacturing process, for example, demands a lot more from sanding operation for the finish to take.
€œThere€™s a learning curve there, and you have to figure it out,€ Cochrane noted. €œFinishing companies, for all their technological ability are still figuring that out themselves.€

COUNTER PUNCHING
Peter Giorgio Jr., president of Global Logistics Solutions, Madison, Conn., coordinates shipping for several large retailers, and he believes offshore vendors aren€™t taking their increased costs sitting down.
€œCertainly the recent increases in ocean freight have created an environment where bottom line margin is noticeably affected,€ he said. This impact most definitely has caused every buyer to at least consider other options. Those options involve looking at production from other overseas origins and domestic warehouses/USA production.
€œTo be honest, I have not seen any reduction in import volume for the accounts I am involved with,€ Giorgio added. €œIn fact, since last Market I have seen new vendors coming into the mix with my accounts and therefore have to assume the buyers have found aggressive pricing for these imports that offset the rise in transportation/material costs.€
Domestic producers that have built a niche, though, have pretty decent prospects at the moment.
€œRetail isn€™t that great right now, but we still have a good backlog,€ Giorgio said. €œIt€™s a great marketing template €¦ and American workers are the most productive in the world.
€œYou couple that with strong manufacturing processes and state-of-the-art machinery, and that€™s a game changer.€ HFB  

Moving Target

By Home Furnishings Business in on July 2012

If you liken U.S. vendors€™ commitment to sourcing in Asia as a marriage, it might need a little couonseling, but don€™t expect a divorce.

If you look at it as the action in a singles bar, though, a lot of importers are looking for other people to date.

The dance card is getting spare in the furniture industry€™s quest for low-cost labor. A journey that began way back when in the United States€™ Upper Midwest and Northeast took a long, sustained turn South to North Carolina, South Carolina, Virginia and Mississippi. That was just the beginning.

Mexico came next, then a gradual progress through Asia. Now, the world has gotten a lot smaller in terms of new frontiers for sourcing furniture, especially when it comes to seeking cheap labor.

Africa? Political turmoil in many countries there makes that continent an iffy proposition as an immediate destination. India? While there€™s potential, it will take a few more pioneers along the lines of a Paul Maitland-Smith to develop the subcontinent€™s full potential as a source for the North American market.

THE LONG HAUL
Government policy, especially in China, rising labor rates in some countries and increased ocean freight costs have taken some bloom off the Asia romance, but the furniture industry is too committed to back out, according to people who handle a lot of shipping for retailers and vendors alike.

€œI guess I would say that rising material costs and transportation costs happening together have most likely eliminated the €˜butterflies in the stomach€™ type excitement for Asia imports,€ said Peter Giorgio Jr., president of Global Logistics Solutions, Madison, Conn. €œBut the marriage is far from over. I am certain that most buyers have at least looked at U.S.A. production landed costs versus import landed costs for categories where margin has been compromised recently. I would think that there may exist some opportunities for U.S.A. purchases from those vendors with excess inventory to be advantageous short-term.

€œBut Asia factories and owners are very resourceful and will find new locations where FOB price will continue to be a huge benefit for importers.€

The marriage may be losing some of its romance but don€™t expect a divorce anytime soon, said Patrick Smith, national sales manager at Watkins Shepard.
€œThe biggest (Asian) advantage still lies in reduced production cost and less regulatory issues as compared with western nations,€ he said. €œThere may be some juggling of production from plants within the Pacific Rim, but China will continue to dominate the manufacturing base until other countries develop the infrastructure to support significant rebalancing.€
At Zenith Global Logistics, President Jack Hawn hears customers grouse about higher shipping costs from Asia, but hasn€™t seen much slow down in sourcing interest there.
€œI don€™t see people saying €˜I won€™t source in Asia€™ because shipping costs increased,€ he said. €œThey complain about it but that hasn€™t kept them from sourcing in China or Vietnam.€
Zenith, which recently negotiated rates for the next 12 months, is only slightly higher on base rates for shipping containers this year, but right now it sees bunker charges (for fuel cost fluctuations) up $230 per can.

CHINA SHIFTS GEARS
Chinese government policy, an exodus of much bedroom production in the wake of the imposition of antidumping duties, and rising labor costs are driving some fairly dramatic shifts among Asian source countries.
€œThe Chinese government has said they€™re looking for higher-paying, cleaner industries,€ said industry analyst Jerry Epperson, managing director of Mann Armistead & Epperson in Richmond, Va. €œThose traditional manufacturing sectors€”textiles, furniture, toys, apparel€”are seeing the hand-writing on the wall as far as getting a lot of government support going forward.
€œFor new factories, they€™ll have to be farther inland, and that doesn€™t work well for furniture, shipping all that wood to the interior. That€™s where things like toys are going, though.€
Look for a similar trend in Vietnam.
€œIt is a couple of years behind China in wanting cleaner, higher-paying industries, but that€™s coming,€ Epperson said. €œThat will lead to people considering Indonesia, Malaysia more so than they would have five or six years ago.€

SWITCHING PARTNERS
And those other countries are stepping up to grab the opportunity, Epperson added, particularly Indonesia and Malaysia.
€œThey€™re building an infrastructure that allows them to be more competitive from a logistical standpoint,€ he said. €œYou also have to remember that the Indonesians, Malaysians, even the Filipinos, have more raw materials at hand than either China or Vietnam. And India is growing. The numbers are just now beginning to come in, but I think you€™ll see India come on strong.
€œIn upholstery, it€™s still tough to beat the Chinese. I think they€™re around 45 percent of wood, and 75 percent of upholstery imports (in the U.S. market).€
Also, the rush to Vietnam in reaction to duties on Chinese wood bedroom furniture has helped importers learn more about relocating production quickly.
€œWith bedroom furniture and the high duties imposed, at least for my clients, I saw very little reduction in bedroom furniture imports as all that happened was the origin shifted from China to Vietnam,€ Giorgio said. €œThe shift of production happened very quickly and overall there was very minimal interruption in the flow.
€œI see that similarly happening in today€™s environment of higher overall costs that will force the factories to search out lower overhead origins and continue competitive pricing advantages over USA production. Additionally the huge increases in ocean rates will be short-lived as capacity increases and shippers negotiate lower rates.€
The movement to Vietnam that began with the antidumping duties has continued for more categories, said Hawn at Zenith Global.
€œAbout a year and a half ago we saw a trend of more people going to Vietnam from China. You had the bedroom tariffs, plus labor shortages, strikes, rising material costs (in China),€ he said.
Tighter labor supply and increased wages in Vietnam are having an effect, as well.
€œWe€™re seeing a huge pick-up in Indonesia. It€™s labor€”they moved to Vietnam, and now they€™re moving to Indonesia,€ he said. €œAnd Indonesia is blessed with better species of wood than either Vietnam or China.€

MANAGING THE FLOW
With the sheer distances involved, it hasn€™t gotten much easier to manage the flow of goods from Asia. Hooker Furniture, for example attributed a first-quarter decrease in sales in part to out of stock positions after it shifted production of some goods from China to other countries.
Supplier service is a growing issue at Furniture Brands International, too.
The long supply chain is always hard to manage€”your mistakes are bigger, your lead times are longer and you need better projections,€ said Furniture Brands CEO Ralph Scozzafava. €œThe rewards are typically low-cost case goods, but there are some issues there now. Service levels from Asian suppliers have been more challenging. There€™s been more movement among source countries in the Asian supply chain; labor increases have had an effect there; and every year you have the Chinese New Year you have to work around.€
He said FBI€™s been in pretty good shape regarding product flow.
€œWe have a supply team in Asia that€™s very good and that€™s been in place a long time, but you always have to keep your eye on it, and you always have to make good decisions on how much to get,€ Scozzafava said. €œWe were talking case goods just now, but it€™s the same with cut-and-sew kits€”you always have that lead time.
€œChina€™s still a great place to get goods, and there are others that are getting better. Vietnam€™s improved a lot, and so has Indonesia.€
That said, FBI took steps to make sourcing life a little simpler when it opened its own cut-and-sew facility in Mexico about a year ago, producing mostly for Broyhill and Lane.
€œWhy? First, it shortens the supply chain,€ Scozzafava said. €œThe product€™s only three or four days away. Second, there€™s good expertise there.€
Epperson also cited activity south of the border.
€œMexico€™s been making some nice gains,€ he said. €œFBI, La-Z-Boy and Ethan Allen are showing that cut-and-sew works well there versus Asia.€ HFB

The Straight Scoop

By Home Furnishings Business in on July 2012

Amid the din of bedding ads and circulars trumpeting the latest BIG SALE€”and aggressive selling tactics that greet consumers in many mattress stores€”one Washington state retailer has found success with a decidedly laid-back philosophy.

Northwest Sleep Solutions, a single-store bedding retailer based in the historic Fairhaven section of Bellingham, Wash., has quietly grown its business by being the antidote to the hard sell. Store owner Scott Caseria and his co-owner wife LeAnn wouldn€™t have it any other way.

Enter the Mattress Zone
Since the Caserias opened their store in 2008, they have yet to advertise a sales promotion. €œIn our five years in this location, we have never had a sale, not once,€ said Scott Caseria. €œWe just don€™t do that. We€™re careful not to use the word €˜sale€™€”we€™ll use €˜savings.€™ People save money buying here, even though it€™s a pretty store, but we€™re not going to mislead people. If we€™re going to mislead people in our advertising, I would assume that they would think I would mislead them once they get here, so we€™re just not going to go there.€
That doesn€™t mean the store doesn€™t promote aggressively. €œWe do a lot of advertising,€ Caseria said. €œI do a lot of radio spots. We€™re always pounding the idea that the straight scoop is what you€™re going to get here. €¦ We did a cute €˜Twilight Zone€™ commercial saying €˜You€™re entering the Mattress Zone, where the laws of mathematics do not apply.€™
€œWe€™re trying to be the voice of sanity,€ he added. €œThe advertising€™s just gone out of control on beds, and it€™s almost become a joke, where 10 percent off 25 years ago was a legitimate deal€”now, if you€™re not 80 percent off, you€™re not in the game. The ridiculous thing is, no one is 80 percent off, they just say they are and it€™s very frustrating, so we don€™t do that.€
Scouting Missions Encouraged
The low-key tone of Northwest Sleep Solutions€™ ad campaigns is reflected in the sales approach consumers will encounter upon entering the store.
€œThe first thing we do is make you feel that it€™s OK to be €˜just looking,€™€ Caseria said. €œWe€™ve coined a little phrase here we call €˜scouting missions€™, and you can just see the walls come down from the people. There are people that come in that truly are just looking, but there are also people where that€™s their first statement, because they want to fend you off. We just say €˜We encourage scouting missions, we want you to take your time, you€™ll make a better decision€”that€™s why we€™re here.€™
€œThe places I ran for other people before, if you didn€™t sell them that first day, you never sold them. Our average customer is
in here two to three, sometimes four, times before they buy, and the idea is making them comfortable€”that it€™s OK to learn something about what you€™re going to sleep on for the next 20 years.€

Realizing the Dream
Caseria€™s interest in bedding had its origins in his days as a student. €œI actually lived across the street from a furniture store,€ he recalled, €œand I wanted a job as a truck guy, or something part-time while I was going to college. For some reason, the owner of the store thought that I would make a good sales guy. €¦ It went pretty well, and about a year later I was managing the store. €¦ My favorite part of that was always the bedding.
€œSo I bounced around a few other stores, but all the time, in the back of our heads, we wanted to have our own sleep shop. We had a certain way we wanted to do it, and so the opportunity came up where a lot of the good lines came to me and said €˜You€™ve got to open your own store.€™ I€™d always wanted to, and I said, €˜You know what? If we know we have the right lines going in, things that I want, we€™re going to do it.€™ So that€™s, in a nutshell, what happened.€

The Good Lines
Caseria has been very selective in choosing the lines and models to sell in his store. €œWe carry Simmons,€ he said. €œIn the foam world, we carry a natural latex bed. In synthetic foam, the only one I€™m going to carry€”because it€™s the only one I€™ve had any luck with€”is Tempur-Pedic. We€™ve carried them 10 years, and we€™ve never had a warranty call. That€™s amazing. Tempur€™s been fantastic for us, it really has. We€™ll sell one, and the next thing, the (customer€™s) neighbor or brother will come in and buy one. €¦ What we get is customer referrals. You treat people right and they take care of you.€

Steady Growth
Northwest Sleep Solutions has enjoyed consistent growth since opening€”even in a tough economy. €œThey say it always take a couple of years to make a profit,€ Caseria said. €œWe were making a profit in our third month. Then, when the market crashed, we didn€™t see anyone for two months. €¦ Suddenly we were in a spot that we weren€™t expecting to be, but the store has survived and grown 25 to 30 percent each year.€
While it may seem logical to expand into more stores, Caseria said he€™s in no rush. €œI€™m not a guy that really wants to have a huge chain of stores, but there are times I think, if the right location popped and we found the right people to run it the way that we want it run, there€™s always a chance that we could go someplace else. But this little store here, we€™re going to keep.€
Caseria€™s main ambition for his family-owned operation is to keep it in the family: €œI€™ve got a son who does our delivery and warehouse work since we opened. I€™d love for him to probably take this over some day.€ HFB

ISPA to Host Mattress Recycling Panel in Vegas

By Home Furnishings Business in Mattresses on July 19, 2012

The International Sleep Products Association will host a panel of retailers, manufacturers and recyclers at Las Vegas Furniture Market to discuss mattress recycling.

The educational session, titled, €œMattress Retailers and Manufacturers Beware: Are You Prepared for 50 Different State Used Mattress Recycling Laws?€ is set for Tuesday, July 31, 3-4 p.m., in the World Forum on the 16th floor of World Market Center Las Vegas's Building B.

The panel will provide information about various bills that state legislatures across the country are considering to regulate the recycling of used mattresses. ISPA believes that these programs are inefficient and expensive, and that a national recycling program is the only cost-effective and efficient solution for mattress manufacturers, retailers and consumers alike.  In addition, the panelists will share their views on existing mattress recycling efforts as well as their thoughts on how the proposed state programs will affect the industry.

€œIndividual states are attempting to deal with the issue of mattress recycling on their own,€ said ISPA President Ryan Trainer. €œUnfortunately, the different solutions proposed so far will burden retailers, manufacturers, and most importantly, consumers with new obligations that will unnecessarily increase costs and could limit product choices and competition. The result could be a patchwork of 50 state laws that impose different and possibly conflicting mandates on retailers and manufacturers.€

According to Trainer, €œISPA continues to believe that the best approach to recycling used mattress materials efficiently is to create a national recycling program. This will eliminate state-by-state differences in rules, and encourage the economies of scale possible with a uniform national program, which will result in more efficient recycling and lower costs.€

The panel of speakers, which represents manufacturers, retailers and recyclers from the mattress industry, includes: Doug Guffey, president of Sleep Inc.; Barrie Brown, owner of Sleep. You Deserve More; and Joe Paviglianti, principal and co-founder of Spare Our Landfills.

Product Management Alliance Executive Director Daniel J. Connelly will moderate the panel.

All industry members attending Market are encouraged to attend the panel discussion to learn more about this increasingly important issue which will directly affect the mattress industry.

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