Subscribe to Furniture Today
Subscribe to Enewsletters
Other Home Furnishing Sites
E-mail to a friend   Printer-Friendly version  

Bedsprings prices rising sharply

Leggett, Hickory Springs blame higher steel costs

HIGH POINT — Bedding producers, struggling to break out of an industrywide sales slump, have gotten some unwelcome news from their spring suppliers: Prices are going up dramatically.

Other categories of components, including foam and ticking, also have seen increases, bedding producers say. But the severity and timing of the spring price hikes has manufacturers wondering how they will cope.

Steel prices are being driven up by rising global demand for scrap steel, resulting in what spring producers describe as unprecedented increases in raw material costs. As a result, spring prices are taking double-digit surges in some cases, with more increases in the offing.

Industry sales leader Leggett & Platt announced price increases effective April 14, with innerspring prices and wire box spring components rising by 7.5%, and fabric-encased innersprings and mounted box springs rising by 5%.

Before those prices even took effect, L&P sent another letter to its customers announcing further increases, which will take effect May 12. Prices will rise another 11% on innersprings and wire box spring components, 8% on fabric-encased innersprings, and 5% on mounted box springs.

“We certainly understand the unfortunate timing of this increase announcement, given current economic conditions,” wrote Perry Davis, president of L&P’s bedding group. “However, the continued upward spiral in raw material costs leaves us with no alternative. While we would like to think this will be the last increase announcement in the short term, continued upward pressure shows no sign of abating at this time. We will do our best to keep you apprised of the situation as it develops.”

Davis blamed the steel increases on “global demand for scrap steel, and the shortage of rod at competitive pricing from international producers.”

Hickory Springs, another major supplier of wire products to the bedding industry, also announced two sets of price increases in a letter sent to its customers last month.

Effective May 5, it said, bonnell prices were increasing by 16.5%, with other innersprings going up by 10.5%, and mounted box springs increasing by 6%, among other wire increases.

And effective June 2, the supplier said, bonnell prices, and the prices of other innersprings, would both be increasing by another 12%, with mounted box springs rising by 7%, among other wire product increases.

“We continue to experience unprecedented increases in our raw material costs,” Stuart Spiller, vice president of Hickory Springs’ bedding products division, wrote to customers. He said the two-phase price hikes were designed to spread the increases out over a period of time.

More price hikes are coming, Spiller indicated.

“Our suppliers have told us that additional wire increases in June are imminent,” he wrote. “We will be forced to pass these increases on in the month of July.”




E-mail to a friend   Printer-Friendly version  
Thanks for the article. I am assumi...  — Blondie Writes



Sponsored Links



SPONSORED LINKS

Related Articles

Please visit these other Reed Business sites