The third group Dunne covers are the electronic manufacturing service names. Enclosure manufacturers comprise the fourth group. These companies fabricate the metal and plastic housings in, and perform integration services for, all this electronic gadgetry. Its establishment as a leader in the fast-growing global electronic enclosures market has allowed it to benefit from the same outsourcing trends as the electronic manufacturing services industry. This has brought billions of dollars to the industry.
Acquisitions are the third major driver.
According to Dunne, the crucial question for the industry is whether it can continue to grow at the current rate and whether managements can skillfully pilot companies that are expanding at such a fast clip. Several of these companies have increased revenue tenfold over just a few short years. With these kinds of spectacular growth rates, Dunne asserts that investors should focus on the names with strong management, breadth of products and services, geographic diversification and the ability to quickly identify and integrate acquisitions. Recently, Sanmina purchased Hadco , making it the largest fabricator of PWBs in the world. In addition, Sanmina has a very strong balance sheet and a proven ability to integrate companies.