The Urethane Blog
March 19, 2024
Housing Starts And Permits Surged In February (Despite Plunging Rate-Cut Odds)
by Tyler Durden
Tuesday, Mar 19, 2024 – 08:44 AM
Housing Starts and Permits rebounded firmly in February from an ugly January.
Starts soared 10.7% MoM (+8.2% exp) recovering some of the 12.3% MoM decline in January and Permits jumped 1.9% (+0.5% exp) from the upwardly revised -0.3% MoM decline in January…
Source: Bloomberg
That was the biggest monthly jump in Starts since May and biggest permits rise since August.
With weather being blamed for January’s decline, February seems like a return to post-COVID lower norms…
Source: Bloomberg
Under the hood, rental unit housing permits outpaced single-family units
- Single-Family: up 1.0% to 1.031MM from 1.021MM
- Rentals: up 2.4% to 429K from a four year low of 419K
On the Housing Starts side, single-family units rose more (but both saw signifiant rises):
- Single-Family: up 11.6% to 1.129MM, highest since April 2022, from 1.012MM
- Rentals: up 8.6% to 377K from 347K
All good news for the meager supply out there. The question is – with rate-cut odds plummeting, has homebuilder confidence, which recently spiked back above 50, got too far over their skis on expectations of The Fed saving the day.
If they build it, will home buyers come?
March 18, 2024
PURPLE INNOVATION AND TEMPUR SEALY INTERNATIONAL REACH AGREEMENT
News provided by Purple Innovation, Inc.
12 Mar, 2024, 16:03 ET
Framework for Mattress Firm Partnership and Confirmation of Purple’s Patents
LEHI, Utah, March 12, 2024 /PRNewswire/ — Purple Innovation, Inc. (NASDAQ: PRPL) (“Purple” or the “Company”), a comfort innovation company known for creating the “World’s First No Pressure® Mattress,” today announced that it has entered into a settlement agreement with Tempur Sealy International, Inc. (“Tempur Sealy”). The parties have agreed to a post-acquisition framework for Purple’s partnership with Mattress Firm Inc. (“Mattress Firm”), the nation’s largest mattress specialty retailer, subject to FTC approval of TSI’s acquisition of Mattress Firm, and amicably resolved their various intellectual property disputes. Purple is pleased to reaffirm its valid patent and trademark rights in and to its proprietary Hyper-Elastic Polymer® gel material, the key component in Purple’s GelFlex® Grid.
If the FTC does not object to Tempur Sealy’s acquisition of Mattress Firm, Tempur Sealy agrees that Purple will retain its current relationship with Mattress Firm for a minimum of twelve months, versus the two-month commitment in place previously. According to Rob DeMartini, CEO of Purple Innovation:
“Mattress Firm is an important and respected partner. We believe our Purple brand and products bring a high number of unique consumers into Mattress Firm stores. We appreciate working on an even playing field today and want to continue to work collaboratively with Mattress Firm. This agreement will give us time to explore expansion opportunities.”
Purple and Tempur Sealy have also agreed to amicably resolve all differences regarding their various intellectual property disputes. Although the specific terms of the deal are confidential, Purple retains all control and ownership over its brand, its patented mattress technology and its Hyper-Elastic Polymer and GelFlex Grid marks. That the parties were able to resolve their differences is a strong signal to the marketplace that Purple is an innovator in hybrid mattress technology and deter future threats to Purple’s business. DeMartini adds:
“The marketplace’s interest in gel technology recognizes the strength of what makes Purple’s unmatched sleep innovation disruptive and cutting edge, and the best way of delivering deep, uninterrupted sleep. We are pleased to focus on expanding Purple’s business and bringing the many benefits of our GelFlex Grid to more customers.”
About Purple
Purple is a digitally native vertical brand with a mission to help people feel and live better through innovative comfort solutions. Today Purple markets and sells its products through direct-to-consumer online channels, traditional retail partners, third-party online retailers, and Purple-owned retail showrooms. Purple designs and manufactures a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Its products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors’ products. For more information on Purple, visit purple.com.
March 18, 2024
America’s fossil fuel industry is booming.
Indeed, while clean energy policies (or, perhaps, a lack thereof) are debated ahead of November’s election, one quiet fact has gone relatively under the radar: no country in the history of our planet has pulled crude oil out of the ground at the pace of the United States over the last 6 years.
Data released by the US Energy Information Administration (EIA) on Monday finds that the US produced the equivalent of 12.9 million barrels of crude oil and condensate per day last year, 28% more than the world’s previous top producer, Russia, and 33% more than even the oil-rich Kingdom of Saudi Arabia.
Reversing the flow
The modern petroleum industry can trace its roots — or wells — back to the 1850s when Edwin Drake dug a ~70 foot oil hole in Pennsylvania and started pumping up to 20 barrels a day of what would come to be known as black gold. But, despite getting a head start on much of the rest of the world, the US was a tiny player in global oil for much of the latter half of the 20th century.
Indeed, were you to transport someone from the oil-importing heyday of the year 2000 to the present day, they’d scarcely believe that the US had become a net exporter of oil (chart here), let alone become the dominant force in a market that — despite the best efforts of renewable scientists — remains the most important global energy source.
Frack to the future
The shale revolution is often credited with much of the progress in America’s newfound oil boom, as hydraulic fracturing (or fracking) unlocked a wave of previously inaccessible, or at least uneconomical, oil and gas reserves. Fracking involves forcing liquid — usually water mixed with sand and chemicals — into fissures in shale rock, cracking and expanding the gaps, allowing the once-trapped oil and gas to find its way to the surface.
As fracking got more efficient, it wasn’t just the crude oil industry that benefited: America’s natural gas production has also exploded over the last 15 years.
Gassed up
Oil and natural gas now join the ranks of heavy machinery, semiconductor chips, and cultural exports like TV & movies, as one of America’s most important trading markets. In December 2023, the US exported ~400bn cubic feet more natural gas than it imported, a dramatic shift from a decade earlier. Driving much of the boom is America’s liquefied natural gas (LNG) export industry, which — as recently as 2015 — basically didn’t exist.
By liquefying the gas, at a frosty -260° Fahrenheit, shipping and storage becomes a lot easier, with the volume of natural gas in its liquid state roughly 1/600th of the volume in its gaseous state — enabling America’s newfound fracking success to be shipped all over the world.
Upheaval in energy markets, particularly after Russia’s invasion of Ukraine, further boosted demand for American LNG. Indeed, over the past 2 years more than 60% of US LNG exports have found their way to Europe, where buyers have been looking to replace lost supply from Russia. The overall result? From what was pretty much a standing start at the beginning of 2016, America’s LNG industry is now shattering records, with the US becoming the largest exporter of LNG in 2023, unseating Australia and Qatar.
Rigged
One of the most striking things about America’s ongoing fossil fuel boom is that the industry has learned to do more with less.
To get a sense of whether US oil production was likely to rise or fall, you used to be able to look at the number of drilling rigs — the towering steel structures that dig wells and adorn oil-rich regions like the Permian basin in Texas. However, despite the production upswing, the number of crude oil rigs has actually fallen, to about one-third of what it was a decade ago. Advancements in fracking, as well as new “horizontal drilling” techniques — that can spread more than 3 miles underground in one direction — has enabled drillers to increase production without the need for additional rigs.
Independence decade
The “shale revolution” has not only dramatically transformed global oil markets — and made a lot of people a lot of money — it has also shifted the sands that underlie global power structures. Although it would be a gross oversimplification to suggest “America doesn’t need anyone else’s oil or gas”, the fact remains that a thriving energy sector gives American leaders a stronger hand when negotiating on the world stage, as well as the ability to step in for allies when supply from volatile regimes is lost or blocked.
March 17, 2024
Ashley and Resident Announce Acquisition
PR Newswire
Expected to Create a Broader Assortment of Home Furnishings to Accelerate Resident’s Growth
TAMPA, Fla., March 5, 2024 /PRNewswire/ — Ashley Home, Inc. and Resident Home Inc. today announced the signing of an agreement, under which Ashley Home, Inc., an affiliate of Ashley Global Retail, LLC (collectively, “Ashley”), will acquire Resident Home Inc. (“Resident”). The transaction, which was unanimously approved by the Board of Directors of both companies, provides Resident, a leading digital retailer and wholesaler of mattresses and bedding accessories, with an opportunity to expand its home furnishings assortment and global footprint. Through Ashley’s affiliate company, Ashley Furniture Industries, LLC (“AFI”), Resident will experience improved sourcing and efficiencies to foster additional growth in both its direct-to-consumer and wholesale businesses.
Through its award-winning Nectar®, DreamCloud®, Awara™, and Siena™ brands, Resident has established itself as a leading online seller of mattresses and bedding accessories. Resident’s success is underpinned by its deep expertise in data science and analytics, performance marketing, and e-commerce technology. In addition to Resident’s digital presence, Resident’s mattresses are sold at over 2,500 retailers nationwide as well as in Canada and the U.K. As part of the transaction, Co-Founders and Co-CEO’s of Resident, Eric Hutchinson and Ran Reske, will remain in their positions post-closing.
“Ran and I are thrilled that Resident will now be part of the Ashley family. This partnership marks a significant milestone for our team and our journey. We believe that together, we can achieve even greater heights and deliver unparalleled value to our customers. Joining forces with Ashley enables new opportunities for growth and our team is excited about the possibilities ahead,” said Hutchinson.
“We are incredibly excited about the possibilities that Resident brings to Ashley. In only a few years, Resident has established itself as a premier destination for mattresses, and we believe this merger will strengthen both companies and accelerate our growth trajectories, together bringing more products to more homes,” said Todd Wanek, CEO of Ashley.
The parties anticipate closing on this transaction March 6, 2024.
In connection with the transaction, BofA Securities served as financial advisor and Holland & Knight LLP acted as legal counsel to Ashley, while Sidley Austin LLP acted as legal counsel for Resident. Avid Capital Advisors LLC also advised Resident on the transaction.
About Ashley
Ashley is committed to being your trusted partner and style leader for the home. This commitment has made Ashley the largest furniture store brand in North America and one of the world’s best-selling home furnishing brands with more than 1,125 locations in 67 countries. Start designing your dream home today. Visit Ashley online at ashley.com and connect on social media through Instagram, Facebook, YouTube, and TikTok, or see our design-focused boards on Pinterest.
About Resident
Resident is an industry-leading, digitally native house of brands that makes inspiring products people love coming home to. A disruptor in the mattress and bedding category, Resident’s success is underpinned by its expertise in data science and e-commerce technology. Resident’s award-winning Nectar®, DreamCloud®, Awara™, and Siena™ mattresses have provided quality and comfort to close to six million happy sleepers. Visit residenthome.com to learn more.
https://finance.yahoo.com/news/ashley-resident-announce-acquisition-204100033.html
March 13, 2024
Pearl Group doubles production capacity in Saudi Arabia
Riyadh – Maaal
Pearl Group doubles production capacity in Saudi Arabia
Pearl Group, a global leader in polyurethane (PU) insulation solutions and other PU-based applications, has significantly enhanced its operational footprint and capabilities in Saudi Arabia, doubling its production capacity in the Kingdom and significantly expanding its ability to meet local and regional demand. Further demonstrating its commitment to the booming Saudi market, the PU specialist has rolled out a dedicated supply chain strategy for the Kingdom, making same-day deliveries possible in Riyadh and other demand clusters, and appointed a specialised sales manager in the Kingdom to strengthen its presence and responsiveness in the region.
Strategically located in Jeddah, Pearl’s state-of-the-art production and storage facility was established in 2023 and underscores not only Pearl’s commitment to the Saudi market but also its alignment with the Kingdom’s Vision 2030, which aims to localise production. Doubling production capacity in the Kingdom enables Pearl to manufacture 100 per cent of customer requirements in Saudi and neighbouring countries, utilising the Jeddah plant as a regional hub, reducing logistical complexities and costs, leading to faster delivery times and increased customer satisfaction.
Leslie Gyertson, chief operating officer of Pearl Group, said: “Pearl Group has over 35 years of delivering innovative and sustainable PU solutions in the Middle East, and we have been dedicated to servicing our clients in the Kingdom for decades. We have witnessed tremendous growth in Saudi Arabia, and being close to our customers, having the right capabilities to meet their evolving demands, and ensuring we have the best people in place to provide technical expertise are pivotal to ensuring Pearl can support this growth. That’s why, in addition to expanding our manufacturing capabilities, we have appointed a dedicated sales manager, Kamal Ammareen, for Saudi Arabia. It’s this continuous investment in our team and facilities that have enabled Pearl to significantly enhance customer service levels, ensuring our partners and customers receive responsive, professional technical support before and after sales.”
The capabilities of Pearl’s Jeddah hub have been further enhanced with the development and execution of a dedicated supply chain strategy for the Kingdom. Irina Kuzina, chief supply chain officer explained: “As part of our comprehensive supply chain strategy in Saudi Arabia, Pearl is making local stocks available in Riyadh. This will significantly reduce lead times and ensure we are in close proximity to all our Saudi-based customers, enabling us to help them reduce their working capital while also building on our agility and responsiveness. As a business focused on helping our customers achieve their objectives through the provision of end-to-end solutions, this is just one of the steps Pearl has taken to ensure we are where our customers are and are on hand to supply high-quality products and services when and where they are needed.”
Gyertson concluded: “As the chemical industry trends towards consolidation and cost-cutting, we are investing in our facilities and people. This strategic approach underscores our commitment to emerging and high-potential markets and enhances our ability to work closely with our customers.”
Since launching its PearlX2 growth strategy in 2021, with the target of doubling Pearl Group’s business within five years, the PU solutions provider has set its sights on geographical expansion and product diversification. In the years that have followed, Pearl Group has invested in its three production facilities based in the UAE and has launched production and distribution hubs in Saudi Arabia, Egypt and India. The establishment of a production and warehouse facility in Jeddah has played a pivotal role in enabling Pearl Group to achieve significant year-on-year growth.
About Pearl Polyurethane Group
Pearl Group is a global award-winning provider of innovative polyurethane-based systems. With deep foundations in the research and development of polyurethane solutions, Pearl Group offers clients tailor-made systems to meet their exact requirements across a broad range of sectors and applications.
Formerly known as Bayer Pearl and Pearl Covestro, Pearl Group has a proven track record of more than 35 years in the Middle East region, with the company’s roots dating back to Otto Bayer – the German inventor of Polymer in 1937.
Pearl Group comprises system houses strategically located in established and emerging markets to service the company’s growing number of international clients. With state-of-the-art, backward-integrated plants and warehouses in the UAE and Saudi Arabia, a North African regional office in Cairo, and an Indian distribution hub in Maharashtra, Pearl Group offers a comprehensive range of polyurethane systems, prepolymers, and polyesters for the production of high-performance polyurethane foams, coatings, binders, and elastomers.
The Dubai-headquartered company provides products and solutions under a range of brand names that offer many benefits: polyurethane systems that have set the global benchmark in polyurethane foam insulation; spray- and cast-elastomers; polyurethane systems used in the automotive and moulded foam industries; and a range of other PU-based products in many fields of application.
Pearl Group’s commitment to sustainability and pioneering research is deeply embedded in the organisation’s ethos, underlining its role as a proactive agent of change in the battle against global warming. Pearl Group’s active participation at COP28 underscores this dedication, showcasing its innovative solutions designed to significantly cut CO₂ emissions by minimising thermal energy waste. Pearl Group’s polyurethane systems are at the forefront of this effort, offering best-in-class insulation solutions and unmatched energy savings. Through stringent sustainability standards, comprehensive policies, and ambitious targets, Pearl Group empowers its research and development team to drive constant innovation. This ensures not only the elimination of waste and the continual utilisation of resources but also guarantees Pearl Group’s products not only meet but exceed global standards, thereby reducing environmental impact and paving the way for a more sustainable future.
Pearl Group takes a customer-centric approach to establishing and maintaining partnerships by offering end-to-end solutions across the entire value chain. Seamlessly combining international expertise with regional know-how, Pearl Group guides clients through all phases of the buying process, from the initial consultation to technical support and after-sales services.
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