Continental Engineering Services Changes Name to NexSource Technical Services, Expands in San Diego

Business Wire, Oct 1, 1998

SAN DIEGO--(BUSINESS WIRE)--Oct. 1, 1998--

Expands Outsourcing Services for CAD, Data Conversion, Technical

and Specification Writing

Continental Engineering Services, which started in late 1995 as a task force within a sister company providing data services to the aerospace industry, has successfully spun off as a separate entity and renamed itself NexSource Technical Services.

The change is designed to reflect a broader spectrum of service offerings to the global manufacturing community. NexSource remains a wholly owned subsidiary of Continental Graphics Holdings.

The company began as part of Continental Data Graphics (CDG), a leading compiler and publisher of parts and maintenance information. Over the last two years, the company has grown rapidly due to a series of major contracts. NexSource grew to some 300 employees and is now expanding into new 50,000 square-foot facilities in San Diego.

"NexSource sees a bright future because large aerospace, shipbuilding, automotive, utility, tool manufacturing, chemical and other heavy industrial companies are finding it efficient and cost effective to outsource the labor-intensive work involved in engineering and manufacturing data conversion," said Jeffrey Williams, president and chief executive officer of NexSource. "We can take the lower-end, more tedious but important jobs and put an appropriate number of skilled data analysts and planners on them immediately. Companies don't need to invest in this type of effort and can derive an immediate economic and production benefit from outsourcing to us. This, in turn, enables them to get the most of their internal engineering resources working on those opportunities with the greatest potential and quickest payback."

In addition to data conversion services, NexSource will be providing image and scanning services, 2-D and 3-D computer-aided design (CAD) conversion, database management and technical and specification writing from its new facility. Capabilities have been enhanced and expanded with several million dollars in new computer hardware and customized software to serve outsourcing clients in all types of manufacturing.

"We designed the systems and processes around the way large companies operate and their requirements for real time status reports, metrics measurement, tracking, billing and quality control," said Williams. "NexSource has created a proprietary software network capable of tracking each engineering drawing much like FedEx tracks packages. An electronic delivery system covers every step in the process from start to finish and is virtually seamless with our customers' systems."

"The demand for outsourcing is growing because major corporations are converting to new data, product and manufacturing software programs," Williams said. "Legacy data and drawings, i.e. in paper, Vellum or Mylar form, need to be staged for converting into 2-D and 3-D CAD models. In fact, many utility companies are converting their entire power grids to CAD."

"This labor-intensive work doesn't require a degreed engineer," Williams said. "With outsourcing, they can dedicate their internal engineering resources to high priority design and minimize the manual work."

The NexSource predecessor, CES, was created to provide specific data conversion work to Boeing in Everett, Wash. The aerospace giant had initiated a transition to a new product data management system. It needed its legacy data converted immediately, but needed its engineers for design engineering. CES/NexSource put its data analysts and planners on the first project to stage the data for conversion. Successful completion led to additional work and the concept of spinning the company out to take advantage of growth opportunities was born. In just two years the company's growth has positioned it to pursue additional opportunities in aerospace, automotive, manufacturing and other industries.

NexSource corporate offices and an adjoining technical center are located at 7630 Carroll Road, San Diego. It has recently consolidated its corporate staff from Los Angeles to San Diego. The name change became effective July 1, 1998.