Mattress maker Spring Air eyes growth

Cost cuts, added value part of strategy

David Perry -- Furniture Today, April 20, 2009

Charles Dietiker, left, of Spring Air, and Richard Brass of T3 Athletic Recovery Products, the developer of the Ironman mattress line, present Spring Air’s Ironman beds at the Las Vegas Market.

TAMPA, Fla. — Bedding major Spring Air says it has positioned itself for long-range growth and is once again winning retail customers.

The producer, which saw its sales slip last year, said it has cut costs, trimmed its SKUs, and put more value in its bedding products, which are highlighted by the company's flagship Back Supporter line.

The result of that hard work, officials added, is that Spring Air is ready to respond quickly to dealers' needs with customized products.

"We are back in with Mattress Giant, Sleepy's and American Freight," said Steve Cumbow, acting CEO of Spring Air. "We have picked up a lot of business with new customers."

He provided an upbeat assessment of the company's prospects.

"We are very healthy," he said. "Our overhead is close to what it was in 2007." In addition, the company has a decentralized sales structure, has tied sales and plant compensation to ensure that everyone is focused on performance, and has made sure plant managers are "working with sales to drive profitability," he said.

"We are backed by an investment company, American Capital, that has over $200 million in the deal," Cumbow added. "They see progress. They continue to invest in the company. Our gross margins have gone up in the last five months, despite rising raw material prices."

He said American Capital "could be a long-term owner" of Spring Air.

One sign of the company's solid prospects, officials said, is the recent announcement that Spring Air will open a new plant, its largest, in Oklahoma this summer. Spring Air said the 351,000-square-foot plant is needed to serve its growing dealer base in the Midwest.

Spring Air enjoyed a solid market in Las Vegas, Cumbow said. "People understand what our story is in the marketplace," he said. "We have gotten feedback that Spring Air is back to basics and is winning customers."

The company successfully launched a new Ironman line of sleep sets, which incorporates technology designed to help consumers recover more quickly from the rigors of exercise. The beds feature Celliant technology to improve oxygen levels and Celsion latex technology to regulate the body's temperature. The three beds, retailing from $1,499 to $2,499, feature foundations with renewable wood.

"The mattress for the human race" is one of the tag lines for the Ironman line, which pays homage to the celebrated Ironman athletic competition featuring swimming, running and biking. Another tag line, "The mattress for the everyday hero," notes that the line is not just for athletes but for anyone leading and active life.

"The reaction has been very, very good," said Charles Dietiker, senior vice president. "These are unique and exciting products. They are what consumers want. Nothing else has this kind of buzz."

Spring Air has refocused its product lineup to emphasize offerings retailing at $1,000 and below, Cumbow said.

"We have more product retailing from $499 to $999 than we have had before," he said. "We need to be retailers' most valuable asset. With Back Supporter, we offer more lumbar support than other lines."