FREDERICK — Peak Industries is building a 25,000-square-foot facility in the Frederick West Business Park to accommodate steady growth of the company’s contract manufacturing business.

The manufacturer, which specializes in mechanical and electro-mechanical assembly, expects to move from its current location in Longmont to the new facility, located at the Interstate 25 and Highway 52 interchange, in mid-November.

“We’re renting a less than desireable space in Longmont, with 11,000 square feet and two buildings,´ said Mark Hopkins, Peak Industries president. “The new space will allow us to consolidate and grow.”

Hopkins attributes the company’s growth to a trend toward outsourcing.

“Companies are challenged more and more with identifying a niche and developing the right product, at th#e right time, for the right price,” he said. “They don’t want to focus on the manufacturing. We can do the job more cheaply because we have lower overhead, more flexibility with our workforce, and we’re more concentrated on improving production techniques.”

Peak Industries performs contract manufacturing for electronic-equipment manufacturers nationally and internationally. The company posted almost $10 million in revenues last year, and Hopkins anticipates an annual growth rate of 40 percent to 50 percent over the next three years, though staff increases will be less.

Hopkins said the company is betting that the new location will facilitate that growth.

“The new location gives us access to a more plentiful, more cost-effective work force and puts us more in the center of our mass of customers,” he said.

Peak joins a wave of other Boulder County companies moving to Weld, including to Frederick, the Del Camino area and elsewhere.