There were only a couple of contract manufacturing shops in the area. They weren't very good. Their equipment was old. They could only offer partial services. A manufacturer could use them for odd jobs, overflow work, etc.
Today there are many competent, capable, full-service contract manufacturers in the area.
There's one lesson these shops haven't learned yet. When they do, they'll take a major step forward. That is to work together. They still see themselves as competitors. Their real competitors are the companies who are still manufacturing in-house.