Serta Mattress Co. will be breaking ground
Serta Mattress Co. will soon be breaking ground to a 62,500 square foot office, warehouse and manufacturing center in West Phoenix. Within the expansion, it will increase its workforce by 50 percent.
"We haven't determined a place or a builder nonetheless," Says Chief Richard Yulman. Yulman and Burt Kaplan possess the permits for Serta manufacturing operations in Mesa, Chicago and Ontario, Calif.
"We'd like to maintain the new construction by Sept. 1," He states. "We are within a few months of picking out the builder and builder. We expect it will be likely five weeks to create the facility"
Employment should grow in the present 30 to as much as 45 at the end of the calendar year, Yulman states.
The new center will be utilized to substitute the present Mesa Centre of 41,000 square feet, which is currently too small for its expanding company.
Yulman says officials chose to construct a new center after scouting the marketplace for existing products, especially queen size futon mattresses and discovering none of the accessible facilities could satisfy with up with the organization's requirements.
"Serta is going to probably likely soon be in West Phoenix," Yulman states. He states the region is appealing due to its own industrial orientation and proximity to significant freeways resulting in both California and Nevada markets. Additionally, he states, all Serta's providers are from the West Phoenix region.
The new center, as Yulman said, will be equipped with the flexibility to extend into 100,000 square feet with following additions. The organization's present facility in Ontario, Calif., has limited capacity for expansion. Yulman claims the enlarged Phoenix center will even manage overages coming from California demand.
Yulman said that the company has roughly eight years ago on its rental in Ontario, but the corporation will likely peak out from manufacturing queen size futon mattresses in the subsequent two to three decades. With no growth space, these overloads will be dealt with from the Phoenix plant. Just as one third of California's merchandise might come from this Phoenix mill later on, he states.
One of the box mats and springs queen size futon mattress generated in the Phoenix plant would be the organization's flagship product, the excellent queen size futon mattress sets. Product is offered directly to merchants, according to Yulman.
Although he won't disclose sales or volume, Yulman says that he and Kaplan purchased the rights to run the Mesa center in September 1991. Earnings increased by 107% in the first calendar year, and are anticipated to rise by another 50% in 1993.
Yulman and Kaplan formerly held different licenses at the East and Midwest, but offered their interests in 1986. Back in 1989, both made the choice to get back in the futon mattress industry and bought the Serta permit for Chicago under the title of Superior Bedding Co. In September 1991, the two gained their permition at Ontario along with Phoenix.
The 3 factories, Yulman States, accounts for around 16 Percentage of Serta's output nationally. Sealy is the largest bedding manufacturer in the world; Serta is the 2nd biggest.
"We do anticipate in the long run to get additional licenses since they're available," Yulman states. In addition, he notes, "We shall assemble as Superior Bedding Co., however also do company since Serta Mattress Co."
When it would be wonderful to serve all niches out of Phoenix, Yulman says the queen size futon mattress industry is one which needs factories to be found near the merchants. "Retailers don't inventory huge quantities," he states. "We make merchandise for fairly speedy shipping."
He states providers typically create what retailers want upon Ship and request at a three to four day time program. At least 50% of the Phoenix center’s output will remain in the Phoenix marketplace, '' he states. The remaining 50 percent goes to retailers as far west as the California border as far north as Las Vegas.
Included in this new area, Serta officials have been constructing a standalone manufacturing center. The Mesa facility currently uses a merchandise from California. "We are adding surgeries to this mill," he states.