Madico Buys Capacity- And By The Way Solamatrix
Madico has purchased Solamatrix (Sun Gard) based upon announcements this afternoon.
Press Release Solamatrix
Press Release Madico
This comes at the heels of the recent purchase of Commonwealth (SunTek) by an investment group led by the Penske Corporation.
As they say "everyone has an opinion" so here goes!
Both Madico and Sun Gard have had financial concerns based upon the global economic situation and reduced window film sales. Add to this mix the rising costs of petroleum based PET and you have the volatile market conditions we are all currently experiencing.
Madico did not invest in manufacturing capacity throughout the recent decades. Their emphasis has been on photovoltaic applications during the last several years. Their window film sales team has been focused on direct sales to commercial chains and larger contracts competing directly against their own channel. They have encouraged or at the very least remained neutral as their distribution competed directly against their channel with an obvious and substantial price advantage.
Sun Gard was revived after their original owner FTI liquidated assets in 2007. These assets were picked up at pennies on the dollar from a Singapore based buying cooperative.
They have since steadily worked to develop their channel by offering low cost window tinting primarily focused on the car tinting sector. Their current assets include the manufacturing capacity that was attractive to the Madico management team.
It's quite obvious that Sun Gard's coaters and slitters are the jewels in their crown.
New equipment in 2010-2011 dollars would require a substantial investment. By acquiring Sun Gard they immediately improve their manufacturing strength and potentially increase channel coverage at the same time.
Both organizations are management top heavy. The "too many chiefs, not enough Indians" analogy comes to mind.
Both organizations have been "out of touch" with their own channel or rather deaf to the angst of these small businesses in need of leadership and sound direction.
Both organizations were somehow unable to focus their strategies and tactical plans to meet today's challenges in the window film marketplace.
Perhaps as a combined entity they can hone their message and reduce overhead so they can effectively compete against Solutia, Sun Tek and Bekaert and globally against China Inc. and South Korea Inc.
We wish them well.
And. .if you think that I am deliberately leaving my alma mater 3M Window Film out of the window film competitive landscape; you are correct.
Unless and until their management recognizes that leveraging a logo doesn't equate to making a home or business any cooler or safer, they can only win if their prospective customer does not compare or do any due diligence.
Mike Feldman
Press Release Solamatrix
Press Release Madico
As they say "everyone has an opinion" so here goes!
Both Madico and Sun Gard have had financial concerns based upon the global economic situation and reduced window film sales. Add to this mix the rising costs of petroleum based PET and you have the volatile market conditions we are all currently experiencing.
Madico did not invest in manufacturing capacity throughout the recent decades. Their emphasis has been on photovoltaic applications during the last several years. Their window film sales team has been focused on direct sales to commercial chains and larger contracts competing directly against their own channel. They have encouraged or at the very least remained neutral as their distribution competed directly against their channel with an obvious and substantial price advantage.
Sun Gard was revived after their original owner FTI liquidated assets in 2007. These assets were picked up at pennies on the dollar from a Singapore based buying cooperative.
They have since steadily worked to develop their channel by offering low cost window tinting primarily focused on the car tinting sector. Their current assets include the manufacturing capacity that was attractive to the Madico management team.
It's quite obvious that Sun Gard's coaters and slitters are the jewels in their crown.
New equipment in 2010-2011 dollars would require a substantial investment. By acquiring Sun Gard they immediately improve their manufacturing strength and potentially increase channel coverage at the same time.
Both organizations are management top heavy. The "too many chiefs, not enough Indians" analogy comes to mind.
Both organizations have been "out of touch" with their own channel or rather deaf to the angst of these small businesses in need of leadership and sound direction.
Both organizations were somehow unable to focus their strategies and tactical plans to meet today's challenges in the window film marketplace.
Perhaps as a combined entity they can hone their message and reduce overhead so they can effectively compete against Solutia, Sun Tek and Bekaert and globally against China Inc. and South Korea Inc.
We wish them well.
And. .if you think that I am deliberately leaving my alma mater 3M Window Film out of the window film competitive landscape; you are correct.
Unless and until their management recognizes that leveraging a logo doesn't equate to making a home or business any cooler or safer, they can only win if their prospective customer does not compare or do any due diligence.
Mike Feldman
Posted by Mike Feldman at 10/1/2010 4:17 PM 
Categories: Consulting Coaching
Tags: Madico Buys Capacity- And By The Way Solamatrix
Categories: Consulting Coaching
Tags: Madico Buys Capacity- And By The Way Solamatrix
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