Tempur Sealy’s state-of-the-art foam plant will open in 2023.
By Alan Wolf, YSN
Tempur Sealy said it will delay a portion of its new Sealy U.S. product launch amid continuing supply constraints and plant inefficiencies.
Despite improved availability of chemical and foam supplies, increased demand for bedding products has deepened the vendor’s second-quarter backlog, chairman/CEO Scott Thompson said, compelling the company to focus on producing its current line.
Thompson described the delay as “an effort to simplify inventory management for retailers, at a time when the industry is having difficulty meeting robust customer demand. We believe this will result in higher-quality customer experiences and shorter order-to-deliver times.”
The manufacturer said second-quarter orders through May have accelerated beyond earlier forecasts, and the bedding maker is now projecting a 60 percent spike in net sales for the period, driven by growth in U.S. demand for Tempur-Pedic products.
Meanwhile, in anticipation of projected long-term demand, the company plans to break ground next quarter on what will be its largest manufacturing facility in the world.
The new factory, to be located on 130 acres in Crawfordsville, Ind., will be Tempur-Sealy’s third U.S. foam-pouring facility and its fourth planned or newly opened domestic plant in the last 12 months.
Related: Tempur to Up Foam Capacity by Half
The facility is expected to go online in 2023 in a 700,000-square-foot configuration that can be expanded to approximately 1 million square feet with the double the capacity. The plant will serve Tempur Sealy’s Northeast customers and will have the capability to produce a wide range of bedding products and components for branded and non-branded lines, including Tempur-Pedic, Stearns & Foster and OEM mattresses, the company said.
“This facility underpins our commitment to expanding our global manufacturing footprint to fulfill the projected long-term demand trajectory for our industry-leading products and [to] support our growth initiatives,” Thompson said.
The Crawfordsville announcement follows the recent opening of a Sealy plant in Dallas, which will be joined later this year by two additional factories located on the West Coast and in the Northeast. The company said its planned Indiana plant will be funded from operating cash flow.