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Seeing Clearly
By
Edward Boyle
Contributing Editor, Paper Film & Foil Converter
August 1, 2009
Using Black Clawson Converting Machinery equipment,
Commonwealth Laminating drives forward in its goal to be a world-class manufacturer of solar control window film.
Recession! What recession? As one of the world's leading manufacturers of solar control window film,
Commonwealth Laminating & Coating Inc. (CLC) makes, markets, and sells a complete line of
automotive, residential / commercial, and safety and security window films under the SunTek brand
worldwide. Although worldwide demand for window films has declined precipitously along with the global
economy in the past two years, CLC grew 26% in 2008 and expects " healthy" gains this year as well.
President/CEO Steve Phillips attributes those gains to a significant overseas presence, which accounts
for 50% of total sales, as well as the $15 million investment made in new equipment and technologies in
the past year. A low-cost, flexible corporate structure that rivals even its Asian competitors also has
contributed to the company's considerable success. As a result, CLC enjoys a nearly 10% share of the
approximate $600 million world market for window films, a market share Phillips confidently expects will
grow even as the economy likely remains stagnant at best in the coming months.
"During these economic times, there's a contraction going on in just about every market in the world,"
observes Phillips. "Window film has been and will be a growing business worldwide. It's traditionally
grown in the single digits, along with the automotive industry and the home and commercial building
industry. But in some overseas markets where the products are just starting to take hold, such as China,
Eastern Europe, and Russia, the growth has been double digits in recent years."
China, in particular, is an area where Phillips sees dramatic growth potential. By 2020, for example, it is
estimated China will have between 70 and 100 cities with more than 1 million people - and obviously
some that are much larger. Growth in housing, transportation, and commercial buildings will lead to a
subsequent increased demand for quality window films.
Phillips also notes that because of this low-cost, flexible structure, CLC can compete with many Asianbased
manufacturers in their markets. Price, combined with the higher quality product it can deliver,
actually makes CLC a preferred supplier of window film, says Phillips.
"We don't manufacture in China; we sell into China," says Phillips, citing a new distribution center CLC
recently opened in Shanghai. "Manufacturing window films is relatively high tech, very knowledge
intensive, and labor 'unintensive.' So, we're an example of a manufacturing company in the US that
actually is growing worldwide and exporting to countries that enjoy a large trade surplus with the US."
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(China, for example, had a $12.1 billion dollar trade surplus in January 2009 alone. The trade surplus with
the 27-nation European Union was $13.7 billion at the same time.)
Phillips notes CLC also made capital investments of about $15 million in equipment and technologies last
year alone, which he estimates is more than all other window film manufacturers combined. Chief among
them was an $8 million project that included a 72-in. Black Clawson Converting Machinery tandem
coater/laminator and a $6 million new 72-in. dyeing line project that not only helped Commonwealth meet
its current production requirements but also "put us in a strong position for growth in the next five years,"
comments Phillips.
"We're positioned in our industry as a very good value for the money," he explains. "One of our strengths
is that we are a very technically intensive company, and we leverage that technical strength in new
product development, process development, and manufacturing effectiveness. As a result, we are able to
produce window films of equal or better quality and performance at a lower cost than our competitors."
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