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Mattress Company Business Plan

This is compared to the average increase of 17% in GDP from past post-World War II recoveries at the same point. Currently the US GDP is at $15.7 trillion, up from $14.4 trillion at the end of the recession. One of the main contributing factors to the sluggish economy is the weak housing market. The US housing price index is 19% lower than the peak reached in 2007 and is still 7% lower than the index when the current economic recovery began. Banks have recently relaxed certain lending standards, which has led to an increase in some lending categories. .
             The average 30 year mortgage rates continue to stay at all-time lows and currently sit at 3.96%. The historically low interest rates coupled with the relaxed lending standards have resulted in the housing market showing some positive trends as home prices have increased for three consecutive quarters. .
             The national debt and the current federal budget deficit have contributed to a slow economic recovery. The federal deficit was larger at the beginning of and throughout the current economic recovery than it was during any other post-World War II recovery. At the start of the recovery the federal deficit was over 9% of GDP. The recent efforts to cut government spending have reduced the deficit to approximately 4% of GDP, but the national debt still stands at an all-time high of approximately $17.1 trillion.
             The employment condition in Alabama has shown positive trends since the beginning of the economic recovery. The unemployment rate in Alabama peaked in 2009 at 10.5% and has steadily decreased over the past four years. The unemployment rate is currently 6.3%, which is 1% below the national average of 7.3%. .
             Political & Legal.
             Mattress disposal has become a hot topic with environmental protection agencies. Mattresses and box springs often become problematic when they reach the end their useful life. It is difficult to landfill mattresses because they are bulky and hard to move, but they also cause operational issues with incinerators by becoming entangled in equipment.


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