This stock derives value from the support it provides for manufacturing. The latter was an early driver of stock exchange growth, but financial and information technology displaced it in importance for investors over the past two decades. Debates and actions to revive the US economy have rekindled interest in manufacturing excellence as a source of business strength. Quality complaints from China reflect the need to return to American excellence in bulk and continuous production of reliable goods.

Maintenance, Repair, and Operating (RMO), as well as Electrical Contracting services, are very important for specialized and high-technology producers. Outsourcing these support services allows industrial clients to focus on their own business domains. However, the outsourcing has to be reliable and available near principal sites. Here is a company that fits the bill quite nicely. The management has established track records in both RMO and in working on electrical installations. The product range is broad, covering everything a factory could need from wiring to sophisticated switching gear. Everything the company sells comes with full service back-up. It is a business model that all factory managers will find useful.

The management has recently completed an important acquisition. It has taken control of a company in a similar line of business with six locations and an excellent industrial customer base in Colorado. This will give the company vastly accelerated net revenues from an entirely new business area of the United States. Investors will be impressed that the cash component of the acquisition was funded without adding to the company’s revolving credit lines, and that the deferred payment component bears interest 1.75% below the prime rate. This inorganic growth move shows that the engineering competence of the management is backed by the best standards of financial acumen.

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