After the acquisition of Color Label Solutions by General Data
Corporation (GDC):
I had the opportunity to visit one of the key drivers of our interest
in joining GDC: The coating division.
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| GDC Coating Operation |
Let me tell you more about our interest in this group; and more about
the group’s capability.
Before I start describing the coatings group, I want to give you a
simple primer on how labels are made.
General Data has an entire webpage/video to answer this question.
Labels have 4 primarily components:
- Topcoat
- Facestock
- Adhesive
- Liner (which is technically not a part of the label but a necessary carrier)
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| Label Construction |
The Facestock is the paper/synthetic material that makes up the most
visible part of the label. Underneath
the facestock, a layer of adhesive is coated to adhere the face to whatever is
to be labeled. The liner, underneath the
adhesive, is a carrier to make it easy to expose the adhesive. On top of many or most facestocks, is a
topcoat designed to adhere the ink to the face.
Currently, I would estimate the 95%+ of the labels we sell have an
inkjet topcoat.
To make labels involves a seemingly complex supply chain involving 3
key participants:
- Raw Material Providers
- Coaters
- Converters
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| Label Supply Chain |
Raw material providers sell paper, synthetic paper, liner and adhesives
to coaters. Coaters create constructions
of a variety of types of label materials.
Converters die cut the labels into specific sizes; as well as many
produce preprinted labels.
Given the importance of coatings, the ability to coat is an important
value creating function in the label supply chain. Long term, this function should make GDC very
competitive in the on-demand color label market.
General Data’s coated products division is an industry leading contract coater, specializing in the development and production of engineered films and other materials. They utilize an array of face materials, adhesives, substrates, coatings and topcoats to meet the specifications of our customers for a wide variety of applications.
General Data’s coated products division is an industry leading contract coater, specializing in the development and production of engineered films and other materials. They utilize an array of face materials, adhesives, substrates, coatings and topcoats to meet the specifications of our customers for a wide variety of applications.
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| John Finger, General Data Corporation |
According to John Finger, Vice President of Research & Development
for the Coatings Division of GDC, “we started coating about 4 year ago. We saw the need in the market to custom coat
materials for specific applications.”
During our discussions, I asked John “what is your largest type of
coating that you currently apply. John
stated, “about 2 years ago, we started coating adhesives; specifically, new
technology around UV adhesives. We had a
customer/partner who asked for our assistance to produce this new product. Now we coat not only these specialty adhesives
but also adhesives for the products we sell. We not only purchased previous coated material from some of the
largest, industrial coaters, but also coat label adhesives for our own internal use.”
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| GDC Coater |
Once I understood about the importance of coating adhesives in the GDC
operation, I asked, “what other materials do you coat?” According to John, “one interesting film we
coat and sell is a 7 Mil adhesive applied to a building material. In addition, we coat pressure sensitive
enclosures for food; resealable bag closures.
Also, GDC coats products that are for laser, thermal, digital, scratch
resistant and dry erase applications. After 4 years,
GDC is selling many different coated products.”
After working in the business for many years, I see the capability to
coat an important aspect in the label market.
Again, the large industrial coaters will continue to supply the majority
of the market. But specialty items such
as inkjet coatings, produced in relatively small quantities, will become a more
important aspect of the label business.
This capability should insure the long-term viability of Color Label
Solutions, Inc.
Contact us if you have interest in a specialty label product.
Guy Mikel
855-962-7670
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