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VOLUME XXI
September 14, 2023
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June 3, 2024
How mattresses are made: An inside look at an American mattress factory
3Z Brands, makers of Brooklyn Bedding, Leesa and more, manufactures 2,200 mattresses daily in its Arizona factory. Jaclyn Turner/Business Insider
Many steps go into making the modern mattress. Most include a complex combination of foam, metal, and fabric assembled just right to ensure you sleep great. We recently got an in-depth look at how mattresses were made on a tour of the 3Z Brands factory in Glendale, Arizona. This 650,000-square-foot vertically integrated manufacturing plant enables 3Z, to oversee the entire mattress-making process from materials to packaging.
The 3Z Brands portfolio includes Helix, Leesa, Brooklyn Bedding, Nolah, Bear, and Birch mattresses and specializes in bed-in-a-box mattresses that ship free straight to your door. Several of these mattresses are featured in our best mattress guides. 3Z manufactures about 2,200 mattresses daily in its factory and has the capacity to make 4,000. With the extra capacity, 3Z Brands also makes mattresses for other companies, including Nectar, GhostBed, Allswell, and Nest Bedding.
Here’s a detailed account of our tour of the 3Z Brands factory and a look into how mattresses are made, from sewing to packaging.
Making the foam
Finished layers of foam are ready for assembly. Different colors help differentiate the foams. James Brains/Business Insider
Before 3Z Brands can assemble their mattresses, they must fabricate the various parts. As of 2023, 3Z makes all of its foams in-house, meaning they control the entire foam-making process from recipe development to cutting. Foam is one of the most important parts; it takes the longest to prepare. Unfortunately, the only area we couldn’t photograph or record was one of my favorite parts to watch: the foam pouring. This was done to protect trade secrets.
Since I can’t lean on the “thousand words” of a photo, I’ll do my best to describe what I saw. The foam pouring machine is roughly 40 feet long, 10 feet wide, and rises 20 feet. The foam’s chemicals are mixed before entering a long metal bar. The concoction is forced through hundreds of holes in the bar to get more air into the foam.
As the foam sets, a plastic-covered conveyer belt slowly moves the massive foam block forward. The foam is poured into 100-foot-long blocks about 4 feet deep and maybe 7 feet wide. A huge elevator moves the blocks to a spot in the warehouse for curing in the dry Arizona heat for 24 to 72 hours.
Cured blocks of foam that are the dimensions of a bed before being sliced down to layers. Jaclyn Turner/Business Insider
Pouring foam is dangerous, so most companies outsource this step. If you get the formula wrong, the internal temperature of the foam block will rise too high and could start a fire. The foam temperature at the 3Z factory reaches 280 degrees Fahrenheit.
Once it has cured long enough, it’s time to cut the foam blocks down to size. First, it’s cut vertically to match the dimensions of a mattress, as shown above. Then, it’s cut horizontally using a machine I like to call “the Decapitator.”
At this point, the foam layers are ready for the mattress. Leftover scraps are put to good use, such as filling pillows.
Constructing the pocket coils
The pocket springs found in hybrid mattresses arrive at the factory in huge coils. James Brains/Business Insider
Pocket springs, or coils, are a signature feature of hybrid mattresses. They provide durability, support, and airflow. The springs arrive at the factory as a giant coil. The end of the coil is fed into a machine that turns the long steel “thread” into smaller springs appropriate for a mattress.
The “thread” of steel is fed into the machine from the top right. Then, faster than the eye can see, the machine coils and cuts it to make springs. Jaclyn Turner/Business Insider
The spring assembly line is wrapped in fabric to make individual “pockets.” Unlike traditional spring mattresses, the springs in hybrids are usually separated to assist with motion isolation.
Narrower, denser coils are used for the edges to help with edge support.
Several machines work nonstop making pocket springs of different sizes. The pile of narrow springs on the floor will be used on the edges to provide edge support. Jaclyn Turner/Business Insider
The springs are put together in a single layer to be layered and assembled into a mattress.
The pocket spring layers await the mattress assembly process. While it varies significantly, hybrid mattresses often have around 1,000 pocket springs. James Brains/Business Insider
Sewing the cover
Between the quilting, borders, and handles, a lot of work goes into sewing a mattress cover, and each step requires a specialized machine. 3Z employs a team of mechanics to maintain the equipment and ensure everything keeps running smoothly.
The machine below just makes the mattress borders. It features 65 sewing needles and makes eight border rolls at a time.
Some borders feature vertical stitching, which requires a whole other machine.
And you better believe there’s a separate device for adhering handles to the borders.
The same machine that creates the borders is also used to quilt and combine the mattress top, which combines fabric, foam, and a flame-retardant layer. The manufacturer can program the design and materials based on their desired model and size.
Here, you can see what the finished quilted mattress top looks like. On the right is 3Z Brands CEO John Merwin. I was impressed by his knowledge of every step of the mattress-making process. James Brains/Business Insider
During the tour, my editor tried serging together the mattress’s top layers on an air hockey-like table. She did a good job, but her effort didn’t quite pass quality control. Keep at it, Jaclyn!
Assembling the mattress
Once the foam, pocket springs, and mattress covers are ready, it’s time to assemble all the components together. First, the layers are glued together to keep them in place. Above, workers put together zoned-support mattresses, which must be assembled by hand. You can also see mattresses glued together by a machine on the conveyor belt behind them.
Once the layers are assembled, the cover is stapled in place, and the mattress starts to resemble its final product.
Boxing it up
Ever wonder how they get a mattress into those mini fridge-sized boxes? I always have. You may not be surprised that they rely on a specialized machine. The fully assembled mattress is crushed flat and vacuum-sealed in plastic. Then, it’s folded, rolled, wrapped in more plastic, and stuffed in a box to be delivered to your door. Here’s the whole process at four times the normal speed:
Mattresses can’t stay in the box forever, so most 3Z mattresses are made to order. They should be unboxed within 30 days; any longer than that could compromise their ability to expand. Manufacturers must nail the delicate balance of producing enough beds to meet demand while ensuring they don’t stay on shelves for long.
Once boxed up, the clock is ticking to get these mattresses in consumers’ bedrooms. James Brains/Business Insider
Testing and constant modifications
Nolah CEO Stephen Light loves getting geeky with mattress design. Here, he shows off an upcoming release: an Alaskan king bed delivered to you in three boxes. James Brains/Business Insider© James Brains/Business Insider
With hundreds of mattress brands competing for your dollar, manufacturers must stay ahead of the trends and incorporate the latest technology in their mattresses. When we asked 3Z CEO John Merwin and Nolah Mattress CEO Stephen Light about the mattress they’re sleeping on, the answers were related to experimenting with the next product in development, like an expansion into a largely untapped mattress category: the Alaskan King, a 9 foot by 9 foot mattress. 3Z Brands employs a foam engineer with a room full of reference samples for experimenting with new foam variations. The factory also featured an area where you can design your own mattress using the materials made at the facility to help with product development.
What stood out to me were all the companies worldwide that manufacture mattress-making and testing machines. The machine below simulates years of sleeping on the mattress. It’s used to quickly assess durability and determine the warranty length 3Z will offer.
The bottom line
The next time you look at a mattress, think of all the work that went into it. Maybe, take a closer look at the materials and their origin. As you’re drifting off to sleep, think of the hundreds of people who worked together to ensure you get that good night’s sleep. It’s pretty astounding. Sweet dreams!
June 3, 2024
Pending home sales slumped 7.7% in April
By Larry Adams
May 31, 2024 | 12:59 pm CDT
Contract signings retreated in all regions compared to the previous month and one year ago. The Midwest and West experienced the largest monthly declines.
WASHINGTON — The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – decreased to 72.3 in April. Year over year, pending transactions were down 7.4%. An index of 100 is equal to the level of contract activity in 2001.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
Regional breakdown
The Northeast PHSI fell 3.5% from last month to 62.9, a decline of 3.1% from April 2023. The Midwest index dropped 9.5% to 70.7 in April, down 8.7% from one year ago.
The South PHSI lowered 7.6% to 88.6 in April, dropping 8.2% from the prior year. The West index decreased 8.5% in April to 55.9, down 7.3% from April 2023.
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”
May 30, 2024
Supply Shock: Shipping Container Costs Top $10,000 Amid Red Sea Turmoil Thinning Global Capacity
by Tyler Durden
Thursday, May 30, 2024 – 02:45 AM
A more conventional supply shock is underway – nowhere near the nuclear-level hit by government-enforced lockdowns several years ago. The Israel-Hamas war has led to Iran-backed Houthis freezing the critical maritime chokepoint of the Bab al-Mandab Strait, attacking Western commercial vessels with missiles and drones (the latest incident on Tuesday), and forcing major shipping operators to reroute containerized freight around the Cape of Good Hope, which strains the world’s containerized capacity and has just sent shipping costs surging once again.
Bloomberg reports new data from France-based CMA CGM SA, the world’s third-largest carrier, indicating that the cost of shipping a 40-foot container from Asia to northern Europe jumped to $7k in the second half of June, up from $5k in the first half of the month. Rates ranged from $6k to $6.5k, with premium services approaching $1k.
“With capacity stretched by more than five months of attacks on vessels in the Red Sea, the container shipping industry is scrambling to meet demand that’s picking up in the US and Europe,” Bloomberg said.
Data from Bloomberg shows that Shanghai to Los Angeles, Shanghai to Rotterdam, Shanghai to Genoa, and Shanghai to New York are some of the most critical shipping lanes experiencing a price jump.
Trine Nielsen, senior director and head of ocean EMEA at Flexport, said companies are “double-booking or increasing booking numbers to secure space” amid thinning capacity.
The chief executive of Germany-based Hapag-Lloyd AG, the world’s number five container carrier, blamed the surge in shipping rates on the continued Red Sea chaos and shrinking capacity, plus “really strong demand.”
There are no forecasts on how long the price surge will last. However, Hapag-Lloyd CEO Rolf Habben Jansen said, “It could still last for another couple of months if the Red Sea situation doesn’t improve.”
News today from Bloomberg says Israel will need at least seven more months to defeat Hamas. This suggests the fight could expand outside of Gaza to either Lebanon or Iran. If that’s the case, expect continued bombardment of ships in critical maritime chokepoints by Houthi rebels – with increasing risks of an oil supply shock that could send Brent crude over $100/bbl.
May 28, 2024
Kronospan makes second particleboard facility acquisition in recent months
By Larry Adams
May 23, 2024 | 9:38 am CDT
Particleboard plant in Island City, Oregon.
Photo By Kronospan
Kronospan, a leading producer of wood panel products, has acquired Woodgrain’s Particleboard facility in Island City, Oregon, which is the second particleboard facility purchase in less than a year.
In December, Kronospan closed the purchase of Roseburg’s Simsboro, Louisiana, particleboard facility.
The company said the addition of the Island City plant will strengthen Kronospan’s position in the North American wood panel market and further demonstrates Kronospan’s commitment to its overall growth strategy. Kronospan has expressed its intent to invest in the modernization of the Island City plant upon completion of the post-acquisition period.
“I’m very excited about today’s announcement. The addition of the Island City plant and its talented team will further enhance our ability to serve our customers and provide long term benefit to our stakeholders” said Hans Obermaier, CEO of Kronospan’s North American operations.
Kelly Dame, president and CEO of Woodgrain stated, “It was important for us to find a buyer that is a good fit for our 124 team members, and one that will continue to invest in the plant and its people”
In addition to the Louisiana, particleboard plant, and now the Oregon facility, Kronospan operates wood products sites in North America, including in Oxford, Alabama, a multi-product site with MDF, Particleboard, Laminate Flooring, TFL and other products, and an MDF/HDF plant in Clarion, Pennsylvania.
May 27, 2024
Business performance by individual segment
Polyols & Derivatives
The Polyols & Derivatives segment recorded positive
business development in the first quarter of 2024. Overall, sales
volumes and revenues were somewhat weaker than anticipated in
our budget for the current fiscal year. On the earnings side, however,
both the positive prior-year figures and our expectations for the first
quarter of 2024 were exceeded at all levels.
The dominant entity in
this segment is the Polyols business unit of PCC Rokita SA, Brzeg
Dolny (Poland), with its polyether and polyester polyols. Demand for
these polyols remained robust in the first quarter, while a temporary,
force majeure-related plant shutdown at a European competitor led
to a supply shortage with respect to polyether polyols.
As a result, average selling prices showed an upward trend in the first quarter, with
a correspondingly positive impact on the sales and earnings perfor-
mance of this business unit.
At the Polish systems house PCC Prodex
Sp. z o.o., Brzeg Dolny, the production portfolio of which includes
spray foams for the insulation of roofs, the extremely encouraging
business performance of the previous quarter continued through
the first quarter of 2024.
By contrast, the portfolio companies and
business units pooled under the intermediate holding company
PCC Insulations GmbH, which are active in the field of insulation and
other building materials, ended the first quarter of 2024 with a loss,
as had been expected.
The Essen-based manufacturer of specialty
foam blocks and polishing pads, PCC Prodex GmbH (Germany), also
closed the first quarter of 2024 with a slight loss, having seen its
numbers come in slightly worse than expected. However, the out-
look for the following quarter is more optimistic due to the current
order backlog.
The ISO 9001:2015 certification awarded to PCC Pro-
dex GmbH in the first quarter of 2024 should also have a positive
impact.
The start-up PolyU GmbH, Oberhausen (Germany), which
develops specialty chemicals based on polyols, also remained slight-
ly in deficit in the first quarter of 2024. However, the losses were
much lower than expected and the current order situation also in-
dicates a continuation of this encouraging trend at the company.
PCC Synteza S.A., Kędzierzyn-Koźle (Poland), which in addition to
contract manufacturing for PolyU GmbH also continues to operate
its core business, namely the manufacture of alkylphenols, also re-
mained in the red in the first quarter of 2024 due to continuing weak
demand for these products
https://www.pcc.eu/wp-content/uploads/2024/05/PCC-Group-Quarterly-Report-1-2024.pdf
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