Able Electronics Corp. wants to show OEMs that small contract electronics manufacturers can offer the same low-cost options that larger CEMs possess. The Mountain View, Calif., company earlier this month expanded its operations into Mexico, creating AbleMex S.A. de C.V. in Tijuana.

Up until two years ago, Able was a subsidiary of Get Manufacturing Inc., Hong Kong. In 1999, Jabil Circuits Inc., St. Petersburg, Fla., acquired GET and then sold the Mountain View and Tijuana plants to Able, which had become an independent company that year.

"We doubled our business in nine months," said Able's president, Peter Dennis, of the Jabil transactions. "We went from $10 million in sales to $20 million across the board. Next year, our target is to triple the business."

The privately held CEM provides OEMs in the communications, industrial, medical, and telecom markets with full-system turnkey services. About 70% of Able's sales are in communications.

"There's a whole new layer of customers that want outsourcing. Our focus is to be the best CEM with fast turnaround," Dennis said.

To offer more value-added services to the company's 20 customers, Able is preparing to relocate from its 55,000-sq.-ft. Mountain View headquarters to a 120,000-sq.-ft. plant across the bay in Hayward. "It's a better location. We're adding another surface-mount line, so we'll have four, Dennis said.

Both the expansion into Mexico and the pending intrastate move speaks to opportunities that still exist for well-prepared CEMs regardless of size, according to industry observers. And those moves bring Able kudos from some of its regional customers.

"We wanted a CEM that provided turnkey services that was also close to us," said Judy Maynard, a senior buyer at Newport Corp., a laser test-equipment and optical company in Irvine, Calif.

Able has stuffed printed-circuit boards for Newport's San Luis Obispo, Calif., photonics division for six years, Maynard said.

"We started with them as GET. They're familiar with our product line and provide us with the right mix of services," she said.

Although Newport's photonics division is now negotiating a deal with Solectron Corp., a major CEM located in Milpitas, Calif., Maynard said Able proves small CEMs can also serve OEMs well.

"There's a place for small and medium-size CEMs. Companies that don't have high volumes will see them as the right mix. Able makes good business sense for us," Maynard said, adding, "Right now, Able is the only CEM we use. Next year, we could add two more, but Able will be one of our major suppliers."

To bring in more business, Dennis said Able hopes to soon establish a strong alliance with a China-based manufacturing partner.