Yes Virgina er, Manda there are foam suppliers!

These are companies that sell foam, usually in large quantities to places like upholstry shops. Often you find them advertising themselves in a local paper selling foam cushions or mattresses. Sometimes they are wholesalers and only sell in bulk. They're all different. Whether or not there's one in your area probably depends on the size of your city or town. Most larger cities have at least one (here in Toronto we have five or six). Best to look in your Yellow Pages under "Foam". You can also try Army surplus stores and camping shops, since many of these sell foam sheets as well.
For cutting foam I usually use boxcutters because they are cheap and easy to find. Some people just use scissors, but I find that method very imprecise. For carving foam you can use a fish fileting knife. Other people I know insist on using higher-end (expensive) tools, but that's not really necessary in my opinion. You can also experiment and see what works best for you. Whatever you use to cut foam, you should keep the blades lubricated using a little 3-1 oil or vegtable oil so they don't dull too quickly (foam dulls any blade very quickly usually).
As for patterns, check the Puppetry Homepage listed above for links to a variety of free patterns some of which are OK. You can also buy them through the online store of the
Puppeteers of America. One Way Street sells puppet patterns, but I don't personally think they are very good. The best beginner pattern I know of is the basic one from Puppets For Goodness Sake. You can buy it online through
Puppet Odyssey or order it directly from Puppets For Goodness Sake by calling them toll-free 1-888-300-1400 or via email at
puppets4gfs@aol.com (tell them Andrew from Toronto referred you!).
The Foam Book has a number of patterns and covers two different approaches to building foam puppets. It's not perfect, but it's definately a great book to learn from. Both of the other books I mentioned have step-by-step guides to building all sorts of different puppets, many of them from everyday items. I'd also recommend checking your library for any puppet books by Lois Walker for even more ideas.
I hope that helps!
