Delta Group Electronics, Inc.

4521 Osuna Road NE
Albuquerque, New Mexico 87109
U.S.A
.
Telephone: (505) 883-7674
Web site: http://www.deltagroupinc.com

Private Company
Incorporated:
1987 as Delta Group, Inc.
Employees: 390
Sales: $103 million (2017 est.)
NAICS: 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing

Delta Group Electronics, Inc., is a privately held, full-service electronic manufacturing services (EMS) company that provides low- and mid-volume turnkey services for the aerospace, defense, energy, entertainment, medical, semiconductor, transportation, telecommunications, marine, and mining industries. The core of Delta's business is the assembly and repair of printed circuit boards, but it also manufactures items such as fingerprint scanners and radiation-detection equipment and provides cable and wire harness assembly and box-build services. The company maintains robust product inspection and testing capabilities, and an inventory management system that tracks every component through the entire product life-cycle and ensures on-time delivery to customers. Besides its 40,000-square-foot headquarters-manufacturing plant in Albuquerque, New Mexico, Delta maintains assembly facilities in Rockledge, Florida; Dallas, Texas; Fayetteville, Arkansas; and San Diego, California. Each plant maintains ISO 9001/AS 9100 quality certification, and the San Diego facility meets the ISO 13485 quality standard. Delta cofounder Harry C. Mueller serves as president and CEO.

COMPANY FOUNDED: 1987

Delta was founded in Albuquerque by a group on investors led by Harry C. Mueller and Steven E. Klein, a high school friend of Mueller's from St. Louis. Mueller held degrees in economics and business administration from Amherst College and the Harvard Business School, while Klein was a certified accountant and a graduate of the University of Missouri. In February 1987 Delta Group, Inc., was incorporated in the state of New Mexico, with Klein and Mueller serving as CEO and president, respectively. The company found a niche assembling circuit boards and enjoyed modest growth, despite poor economic conditions during the early 1990s. After a decade in business, Delta was ready to expand through external means.

In 1996 Delta established a Southeast Division by acquiring Quality Components Inc. in Rockledge, near Cape Canaveral. The move sparked a significant increase in revenues. In both 1997 and 1998 Delta was ranked on Inc. magazine's list of the fastest-growing privately owned companies in the United States. In 1999 the company was also named on New Mexico Business Journal's Private 100, which recognized New Mexico's top-100 privately held companies based on revenue. At that point the company provided its services to aerospace and military-related industries and commercial-product suppliers.

COMPANY PERSPECTIVES

Mission: To be a growing, profitable electronic manufacturing services company that assembles a high-quality product and offers extensive customer service along with highly dependable product delivery to geographically selected companies in need of outsource manufacturing and to be considered an exceptional place to work.

NEW NAME: 2000

The new century brought a change to the company's name. In January 2000 Delta Group, Inc., became Delta Group Electronics, Inc. The following month Delta added a West Coast presence by acquiring Northstar Electronics Inc., a manufacturing and technical services company based in San Diego, California. In 2001 Delta expanded its southeastern footprint with the acquisition of a second Florida company: On Board Technology Inc. The Orlando-based company was a well-established electronics components company. Its president, Kenneth Harrell, remained involved as a Delta consultant. On Board helped Delta increase its sales to $14.7 million in 2001. That same year Delta facilities achieved ISO 9001:2000 Certification.

In October 2002 Delta lost its own president with the death of Klein at the age of 51. As a result, Mueller became both the CEO and president of the company, this at a time when the economy, and the technology sector in particular, proved challenging. Even so, the benefits of diversification became apparent. In New Mexico Delta grew alongside local tech companies that specialized in filling small to midsized orders. In Florida Delta focused on defense contractors, while in San Diego Delta served aviation and avionics customers.

SAN DIEGO CONSOLIDATION

Business picked up significantly in 2005, which saw Delta increasing its revenues approximately 50 percent over the previous year. As the year came to a close, Delta acquired Frontier Technologies, another San Diego–based EMS company. Frontier continued to operate independently until the fall of 2006, when Northstar Electronics and Frontier were consolidated in a 44,000-square-foot, renovated, state-of-the-art facility in San Diego's Scripps Ranch area.

Also in 2006 Delta established a Southwest Division by acquiring Assembly Solutions L.P. of Grand Prairie, Texas. The Dallas-area company assembled custom wiring harnesses and primarily served customers in Texas and the South. The deal not only helped Delta extend its geographic footprint but also added cable assemblies to its capabilities and a new pool of potential customers for the company's other services.

ACQUISITION OF THIRD FLORIDA COMPANY: 2007

After Delta increased its revenues to $49 million in 2006, it continued to expand both organically and externally. In March 2007 it acquired a third Florida company: the Sanford-based Singletec, Inc. Up until that point Delta had primarily served customers on Florida's Atlantic Coast. Located in central Florida, Singletec provided Delta with greater exposure across the state and added to Delta's customer base. In August 2008 Delta expanded its presence in the mid-South area by acquiring Bitworks Inc., an EMS company based in Prairie Grove, Arkansas. Located in the northwestern corner of the state near Fayetteville, Bitworks provided printed circuit board and electromechanical assembly services to customers throughout Arkansas, Kansas, Missouri, and Oklahoma. Bitworks's current management team was left in place to run the Delta Group Electronics Central-Mid South Division. Work immediately began on an expansion of the Bitworks's facility and was completed the following year.

Delta had to contend with the impact of a recession that was triggered by the financial crisis during the fall of 2008. Nevertheless, the company continued to make strides. In 2009 the San Diego facility achieved ISO 13485 Certification. That same year both the Albuquerque and Arkansas facilities achieved AS 9100 Certification. The following year the Albuquerque plant achieved Nadcap Certification for both cables and copper-clad aluminum wires. In 2011 the Rockledge facility achieved AS 9100 Certification.

In August 2010 Delta began construction on a new 36,000-square-foot building in Fayetteville, not far from the University of Arkansas campus. When the facility was completed the following year, the former Bitworks operation in Grand Prairie was relocated to Fayetteville. The expanded capacity and capabilities, as well as the facility's proximity to Interstate 540, allowed the Arkansas operation to better meet the needs of its customers throughout the region.

KEY DATES
1987:
The Delta Group is incorporated.
1996:
Delta completes its first acquisition, in Florida.
2000:
The company's name is changed to Delta Group Electronics, Inc.
2006:
Delta expands to Texas.
2017:
Delta celebrates its 30th anniversary.

EXPANDING TO COLORADO

Delta was enjoying success in other regions of the company as well. Its revenues improved to $56.6 million in 2012. The following year ABB Ltd. of Coral Springs, Florida, a multinational electrification products giant, named Delta's Florida unit its supplier of the year. Delta also enjoyed growth in New Mexico. The state was home to the Sandia National Laboratory and the Los Alamos National Laboratory, where spun-off technology was used to launch start-up companies and create new local customers for Delta.

Delta also looked for growth to the north in Colorado. In November 2013 it entered into a joint-marketing agreement with Quality Concepts Manufacturing Inc. (QCMI) of Colorado Springs. Established in 1988, QCMI was a contract manufacturing company that assembled components for a wide range of industries, including consumer and industrial electronics, green technology, medical, railroads, and the military. By creating a partnership with QCMI, Delta was able to expand into Colorado without the expense of acquiring a company or opening a new facility. Moreover, Delta further diversified its customer base.

For QCMI, an alliance with a larger company such as Delta was in its best interest. “Delta Group provides the financial strength, quality systems and assembly capacity for QCMI to market to the larger companies in Colorado that need contract manufacturing services,” Debora Wadle, the president of QCMI, told Kevin Robinson-Avila in the Albuquerque Journal in November 2013. Brett Greer, Delta's Southwest regional manager, also explained to Robinson-Avila that the QCMI partnership was part of a wider plan. “We're trying to expand our footprint in both Arizona and Colorado,” he said. “It makes sense to do that by partnering with an established company that already has relationships with prospective customers.”

In May 2014 Delta signed another joint-marketing agreement, partnering with Mesa Secure Acquisitions, LLC, of Carlsbad, California. The decade-old company designed and engineered communications systems for the U.S. Department of Defense and major government contractors. Delta provided Mesa Secure with manufacturing capabilities and in return expanded its defense-related business, especially in Southern California.

EXPANSION OF FLORIDA FACILITY

On the other side of the country, Delta was growing its Florida business. In November 2014 it entered into a partnership with Quantum Technology Sciences, Inc., of Cocoa Beach, a provider of sophisticated seismic detection solutions. Under terms of the agreement, Delta would manufacture Quantum's seismic acoustic sensor system, which was used for a variety of security purposes. Delta was able to handle the contract because it was in the process of expanding its facility in Rockledge. At year-end 2014 a 10,000-square-foot expansion was completed. It included a final assembly area, greater storage and inventory space, and a special process facility. In 2015 the facility installed a state-of-the-art ECOSELECT 2 Selective Soldering System to provide greater flexibility. The new equipment was able to solder certain circuit boards that the company's older equipment was unable to process. That same year the Florida operation won the Business of the Quarter Award from the city of Rockledge.

Having outgrown its warehouse space in Albuquerque, Delta began scouting for a new facility in 2014, but few Class A warehouses that met its needs were available on the market. Delta considered building a facility, but a suitable property finally became available. In June 2015 Delta acquired a 49,500-squarefoot building, paying about $3.5 million. The 20-year-old building had previously served as a warehouse for a moving company that had closed its Albuquerque operations. Renovations on the building were completed in 2016. It served a dual purpose, as the corporate headquarters and as an assembly facility. The new facility resulted in the hiring of more employees and demonstrated Delta's commitment to Albuquerque as its corporate home.

Ed Dinger

PRINCIPAL DIVISIONS

Central; Southeast; Southwest; West.

PRINCIPAL COMPETITORS

Dorigo Systems Ltd.; Jabil Inc.; Servetronics Manufactured Limited

FURTHER READING

“Albuquerque Company Completes Big North I-25 Renovation, Expansion.” Albuquerque Business First, December 24, 2015.

Holtzman, Clay. “Company's Fortunes Provide Window into the Health of Local Tech Firms.” New Mexico Business Weekly, December 18, 2005.

Metcalf, Richard. “Delta Group Tech Firm Buys Warehouse for Expansion.” Albuquerque Journal, June 23, 2015.

“Multistate Operation Owes a Lot to NM Roots.” Albuquerque Journal, November 11, 2013.

Robinson-Avila, Kevin. “ABQ's Delta Electronics Expanding into Colorado.” Albuquerque Journal, November 22, 2013.

———. “Delta Group Grows Its Business across Sunbelt.” New Mexico Business Weekly, April 22, 2007.