MONTREAL -- Electronics manufacturing in the US, Japan and Western Europe accounted for less than half the worldwide output for the first time in 2006 as the migration of volume manufacturing to low labor rate locations continues, according to a new report.

Although the Asia-Pacific, and China in particular, has been the main beneficiary, Central and Eastern Europe, Mexico and Brazil have also benefited from significant investment, Electronics.ca Publications found. In the longer-term, Many of today's low-cost locations will also offer significant market opportunities, creating the need for further investment in local manufacturing. 

Read more ...

NEWARK, NY -- EMS provider IEC Electronics Corp. has completed the acquisition of Val-U-Tech Corp., a privately held manufacturer of wire harness assemblies located in Victor, NY, for approximately $10 million.

For the period ended Dec. 31, Val-U-Tech had revenue of $11 million and expects that its revenue for the six months ending June 30 will be approximately $6.9 million, up from $4.4 million last year.

Val-U-Tech serves military, medical and industrial customers and IEC believes the acquisition leverages the existing customer base of both companies and could lead to cross-selling opportunities.

IEC financed the transaction with a credit facility from M&T Bank, seller notes and issuance of stock. IEC fixed approximately $7.2 million of the purchase price at a weighted average of 5.1% for five years. The balance of the purchase price came from the issuance of 500,000 shares of IEC stock and a draw on IEC’s working capital line.

M&T Bank has provided a $1.5 million equipment line of credit and is supporting IEC’s working capital requirements with a $9 million revolving credit line at LIBOR rates. 

IEC chairman and CEO W. Barry Gilbert said, "Val-U-Tech has been very successful in growing both its sales and earnings at double digit rates for the last few years. Some of IEC’s customers have anticipated cable harness projects to be awarded over the next year. With Val-U-Tech’s management team and IEC’s support we are reasonably confident of winning our share of these programs. This acquisition should significantly contribute to our earnings.”

ANGLETON, TX -- Benchmark Electronics will supply EMS services to iRobot Corp. in a deal the company calls a significant contract. The company didn't disclose the length or value of the program.

The program will be built in one of Benchmark's four ITAR-compliant facilities in the US.

iRobot designs behavior-based robots that help people complete complex and dangerous tasks.