Latex International invests in new technology, lines
By David Perry -- Furniture Today, October 20, 2006
Shelton, Conn. — Latex International, the only producer of latex mattresses and pillows in North America, is boosting market share as the latex category steadily gains ground in the bedding arena.
"The segment is growing," said Mike Lorelli, CEO and president of the company, based here. "The category is picking up 1% every year and now has a 5% share. And our share is up to 55%."
Latex foam, used as a premium cushioning and support material in mattresses, has a sterling reputation among bedding producers, who like its durable, conforming and resilient nature. It's being featured in a growing number of mattress lines and is resonating with consumers, according to LI officials.
They are doing their part to fuel the latex boom, rolling out everything from a five-year strategic plan, which is updated annually, to a mission statement, and from an upgraded corporate headquarters to a growing product line.
In addition, the company has continued to strengthen management and now boasts a senior executive team with Fortune 500 experience throughout its ranks. "With this management team," said Lorelli, himself a former top executive at PepsiCo, "I don't have to show anybody what do to."
Under his guidance, management has embarked on a lean manufacturing initiative, dramatically boosted capacity, opened new fabrication centers across the country, and upgraded support systems and information infrastructure.
The result? Better service for customers.
"Our delivery time to customers is the best it has ever been," Lorelli said. "We are ready for shipment in under three days. No other latex manufacturer can touch that."
In a briefing for Furniture/Today at company headquarters here, Lorelli and other senior executives — Kevin Stein, vice president of marketing; Will Veitch, vice president of mattress sales; and Kevin Coleman, chief operations officer — made these points:
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Latex International successfully has launched its new Dunlop-process production line, which it calls "Bigfoot." The line, featuring a $6 million, state-of-the-art, fully computerized machine, began production last December. The company is at 60% of capacity now for the EverCloud quilt-able latex produced by the line.
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The company successfully introduced its NuForm foam, a new Talalay latex product that offers a slow-recovery feel similar to that of visco-elastic foam. NuForm offers the best of the latex and visco worlds, officials say.
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A new branded latex pillow line, RejuveNite, has exceeded expectations. The line, targeted to furniture stores and specialty sleep stores, was launched successfully at the Las Vegas Market last summer.
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Overall sales of the company's flagship Talalay latex product, manufactured in a high-tech process that assures uniformity and quality, are up 11% this year. LI officials describe Talalay latex as "the world's finest latex" and say it provides superior pressure relief compared to other latex foams and to memory foam.
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The company has increased capacity by 29% by adding eight seamless queen-sized presses and molds. All feature robotics for consistent latex pouring.
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The company has two new latex fabrication facilities. It opened its first Southeast fabrication plant outside Atlanta, and moved its Northeast fabrication site out of its Shelton plant to another Shelton location.
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A new lean manufacturing model has helped the company get its lead times down to three days to any location in the country. The company already has reduced scrap by 4% and produced savings estimated at more than $1 million annually.
Lorelli said he and the board are setting overall objectives for the company, and then letting managers achieve those goals. "They understand the importance of key performance objectives from their larger company experiences," he said.
According to Lorelli, Latex International is transforming itself "into a world-class marketer, without losing its nimbleness, a key competitive advantage."
"We have a lot of capabilities here," said COO Coleman, who formerly worked at General Electric and Frigidaire. "We can take on big course changes quickly. Our greatest strength is that we can huddle and say, 'Let's do this,' and then we go do it."
For example, Latex International currently is producing over 900 mattress cores a day, but is already thinking about boosting that to 1,000, then to 1,100 a day. The key, Coleman said, is to take the process one step at a time.
Under his leadership, the company has instituted a culture in which all work processes are highly and efficiently organized as part of a standard work structure. Every material and product has its home. Work stations are ergonomically arranged to speed flow and protect workers' backs. Coleman said he is striving to fully integrate tactical plans with strategic directions.
While the expanding portfolio of latex products is a key to the company's growth, its sales programs also are vital, said Stein, the marketing VP, whose previous experience included work with AT&T and IBM. "If manufacturers or retailers don't understand latex but want to get in the game, we can help them," he said.
LI, which services about 200 mattress customers, designs products and programs to meet each customer's needs, Stein said. LI stands apart from its competitors in excelling in all phases of the business, from product to marketing to sales training programs, he said.
And the company's messages are getting out.
"Latex is viewed as a superior sleeping surface," said Veitch, the mattress sales VP, who formerly worked at Sealy. "The industry looks at latex as having a lot of pluses.
"It's not hard to explain. Latex feels great. It lasts a long time. It has great health benefits. Those things are easy to remember."
