What surprised you about 2002?

"The biggest surprise for 2002 was the complete inconsistency of the marketplace. The year started well and then dipped into poor sales in the middle of the second quarter. Since then the months have been up and down with no rhyme or reason. The end result is that no one expected 2002 to be as difficult as it turned out to be."

Ed Lilly, president, Serta

"The biggest surprise of 2002 was the continued growth of the foam-encased innerspring product and the influx of imported bedding and components."

Brian Akchin, vice president, Fraenkel Co.

"I'd have to say it's the fact that while the economy slowed dramatically, luxury item sales haven't really slowed. The wealthy still spend like it was 1995 and want to sleep as well as the Queen."

Adrian Jones, director of sales, Hypnos

"The biggest surprise in 2002 was the number of new opportunities that presented themselves for us in the retail market. During a less-than-robust year, many retailers looked for additional profit opportunities in their most resilient category: bedding. That boded very well for Lady Americana."

Kerry Tramel, president, Lady Americana Associates

"What surprised me in 2002 was the higher price points and consumer spending for those products. This directly influenced the successful placement of our PureTouch latex line in so many stores across the United States. More consumers are price shopping ... but more so in the upper-end area."

Michael Pino, president, Therapedic

"I was surprised by the way the Federal Reserve continued to cut interest rates. I guess it's had a positive effect. It was surprising interest rates could go so low. That helped home buying. And that helps bedding."

Daryl Tarbutton, president, Bemco

"I think we all felt that we would see the second half of the year rally in sales. What we have seen is the opportunity to rethink our business strategy to become a better company. If and when sales rebound, then we will be in a position to profit from this growth."

Pat Flippin, president, Kingsdown

"I don't think anyone expected the last half of 2002 to be as challenging as it was. Many prognosticators expected a rebound in the second half, and most thought sales would be much stronger in September and October, after the tragic events of one year ago."

Dave McIlquham, chief executive officer, Sealy

"We had a significant movement toward our brand by retailers. It's pretty overwhelming. We're getting a tremendous amount of attention, and we haven't had any decreases while the industry overall has been in a downturn."

Jim Nation, president, Spring Air

"I thought business was better than expected. Our largest licensees had a good second half and had a strong finish to the year. They also started off very strong. It was a challenging year with all the uncertainty about the economy. We fared better than I might have thought earlier in the year."

Dave Clark, vice president of sleep products, Englander

"The biggest surprise was the state of specialty retailing in the bedding industry. After a decade of progressive share growth in the marketplace, the current reconfigured structure opens the door for a possible shift to alternate channels, which include department stores, furniture stores, clubs and direct marketers. Although segment shifts are never easy, the opportunity exists even more in today's marketplace."

Ron Passaglia, CEO for U.S. operations, Selther

"Although I am getting too old to be surprised, I found it interesting that in a difficult economy it is the larger retailers and manufacturers (Mattress Discounters, Mattress Firm, Sleepmaster) who are unable to overcome the challenges that such an economy presents. Midsize retailers and manufacturers have been better able to navigate in these difficult times. I anticipate both trends will continue."

Ed Scott, president, Restonic

"While we predicted Select Comfort's turnaround and profitable growth in 2002, in spite of sluggish industry sales, the velocity of our double-digit sales growth came as a nice surprise for our employees, customers and shareholders."

Bill McLaughlin, chief executive officer, Select Comfort

"Virtually everyone in our industry predicted a tough first and second quarter, with a stronger second half. That tells me that as an industry we are better promoters than we are prognosticators."

Larry McKay, president, King Koil

"The surprises of 2002 were the slow start, partially influenced by the media coverage and the operational influence of the 'stinky foam' issue in January. Then the biggest surprise was the economic recovery that never happened."

Bob Hellyer, president, Simmons

"We found that the softness in our 2002 business was more intense at the upper levels with our more expensive bedding, which is primarily sold in better furniture stores. That was evidenced by the weakness in higher-end case goods sales this past year, as opposed to midline and promotional categories."

Don Robb, chairman, Chittenden & Eastman

"The biggest surprise in 2002 was the rapid implementation of new fire regulations without standards in place for the producers to test products."

David Fogg, president, retail division, Tempur-Pedic

"I believe 2002 will prove to be the toughest business environment of our business careers. We have learned that even in the darkest hours there is still business to be had. People still go about their lives, moving, starting families, changing careers and even starting new businesses. Yes, even in the furniture industry! In terms of business, we've all had to focus on the basics: merchandising, price points, margin and strategic relationships. It's in the tough times that the most interesting opportunities come about, and in some ways it is easiest to make changes."

Bob Naboicheck, president, Gold Bond

"What surprised me the most was the low unit growth for 2002. I had forecast a 3% increase in units and a 4.5% gain in dollars at the beginning of the year."

Paul Sullivan, executive vice president, United Sleep Products