CDI Corporation
Encyclopedia
CDI Corporation supplies engineering
, information technology
and staffing
services to customers in the United States, Canada and the United Kingdom. The company has four divisions, Anders, Engineering Services, Information Technology Services and Management Recruiters International.
, the growing importance of technology and the rush to be first to market made it necessary to have a larger number of engineers with increasingly diverse backgrounds working with the company. Because this had to be done without dramatically increasing overhead costs
, employers were required to minimize the number of direct employees
receiving benefit
packages from their respective companies. It was for this reason that CDI Corporation, originally known as Comprehensive Designers, Inc. was founded in 1950. The company was put in place to hire additional engineers on a temporary
basis with reduced benefits, and was one of the first companies to offer temporary services to manufacturing companies.
Though CDI had great potential due to the booming automotive sector and defense activity related to the Cold War
, the company grew slowly during its first decade in operation. In 1956, CDI hired Walter R. Garrison, a 30 year old aspiring aeronautics
engineer from The University of Kansas who helped the company grow. Garrison joined the company as a chief engineer
that year and was promoted to Vice President and Director two years later.
and set about to revive the fledgling company. With the Vietnam War
and its subsequent arms race
abounding, U.S. defense spending was set to reach record levels. With such sophisticated advances in technology
to come, it followed naturally that technical services such as those provided by CDI would be needed in the near term. It was for this reason that Garrison started business and recruiting offices nationally in order to adequately perform all of the services that would be needed. Sales by the technical services industry were estimated at $500 million USD, with CDI Corporation being ranked in the top two with annual revenues of $40 million USD. Eighty percent of these earnings were related to military expenditures.
In 1967, company sales doubled when the company won a bid to work on the Lockheed C-5A aircraft. This contract ended in 1968, and the company's defense contracts fell at the end of the Vietnam War
in the early 1970s. The company was able to weather the storm, however, as such customers only comprised 33% of company sales. The remainder of their business was provided by over 100 manufacturing firms in Europe, the Middle East and the United States. At that time, CDI had 3000 temporary workers at any given point who could be shifted between several different cities to serve the needs of any given contract.
projects could be worked from start to finish on company premises by employees of CDI prior to delivery to the customer. This project philosophy was more productive than sending workers to a client's location who may have little familiarity with the project. This business model
continued to expand to the point where close to 40% of CDI Corporation's work was performed within its own walls.
, focusing on middle management (supervisors earning between $25 000-125 000 United States Dollars), the most prominent segment of administration, many of whom were expected to make several career changes prior to settling on a longer term employer. Since this acquisition occurred during the baby-boom generation, there were likely to be a multitude of qualified managers to fill the company ranks. MRI was never more than a fraction of CDI's overall revenue, but the division provided as much as a third of the company's operating income.
In the late 1980s however, CDI's Temporary Services division strived for 500 offices. In 1989, this division reached 145 offices and $111 million in revenue without making any profit. Though 45 of their worst performing offices were eliminated, the division was still unprofitable. Nevertheless, Garrison decided to acquire Todays Temporary of Dallas, Texas
for an undisclosed amount of money.
, facility layout
, outsourcing
, logistics
, project management
, staffing solutions and systems development to alternative energy
, biopharmaceutical
, chemicals
, commercial aerospace
, defense industry
, energy transmission, gas
, heavy manufacturing
, marine
, military aerospace
, nuclear
, oil
, pharmaceutical, power generation, regulated medical services and refining
organizations. CDI acquired the computer and technical services divisions of United Engineers Inc. in 1993.
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
, information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
and staffing
Employment agency
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.-Public employment agencies:...
services to customers in the United States, Canada and the United Kingdom. The company has four divisions, Anders, Engineering Services, Information Technology Services and Management Recruiters International.
Beginnings
After World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the growing importance of technology and the rush to be first to market made it necessary to have a larger number of engineers with increasingly diverse backgrounds working with the company. Because this had to be done without dramatically increasing overhead costs
Overhead (business)
In business, overhead or overhead expense refers to an ongoing expense of operating a business...
, employers were required to minimize the number of direct employees
Permanent Employment
Permanent employees or regular employees work for a single employer and are paid directly by that employer. In addition to their wages, they often receive benefits like subsidized health care, paid vacations, holidays, sick time, or contributions to a retirement plan. Permanent employees are often...
receiving benefit
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
packages from their respective companies. It was for this reason that CDI Corporation, originally known as Comprehensive Designers, Inc. was founded in 1950. The company was put in place to hire additional engineers on a temporary
Temporary work
Temporary work or temporary employment refers to a situation where the employee is expected to leave the employer within a certain period of time. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "freelance", or "part-time"; or the word may be shortened...
basis with reduced benefits, and was one of the first companies to offer temporary services to manufacturing companies.
Though CDI had great potential due to the booming automotive sector and defense activity related to the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
, the company grew slowly during its first decade in operation. In 1956, CDI hired Walter R. Garrison, a 30 year old aspiring aeronautics
Aeronautics
Aeronautics is the science involved with the study, design, and manufacturing of airflight-capable machines, or the techniques of operating aircraft and rocketry within the atmosphere...
engineer from The University of Kansas who helped the company grow. Garrison joined the company as a chief engineer
Chief Engineer
In marine transportation, the chief engineer is a licensed mariner in charge of the engineering department on a merchant vessel. "Chief engineer" is the official title of someone qualified to oversee the entire engine department; the qualification is colloquially called a "chief's...
that year and was promoted to Vice President and Director two years later.
Purchase of CDI Corporation
By 1961, Garrison and his family owned almost 45% of CDI Corporation. He and two colleagues bought out the remainder of CDI's shares of stockStock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and set about to revive the fledgling company. With the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
and its subsequent arms race
Arms race
The term arms race, in its original usage, describes a competition between two or more parties for the best armed forces. Each party competes to produce larger numbers of weapons, greater armies, or superior military technology in a technological escalation...
abounding, U.S. defense spending was set to reach record levels. With such sophisticated advances in technology
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...
to come, it followed naturally that technical services such as those provided by CDI would be needed in the near term. It was for this reason that Garrison started business and recruiting offices nationally in order to adequately perform all of the services that would be needed. Sales by the technical services industry were estimated at $500 million USD, with CDI Corporation being ranked in the top two with annual revenues of $40 million USD. Eighty percent of these earnings were related to military expenditures.
In 1967, company sales doubled when the company won a bid to work on the Lockheed C-5A aircraft. This contract ended in 1968, and the company's defense contracts fell at the end of the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
in the early 1970s. The company was able to weather the storm, however, as such customers only comprised 33% of company sales. The remainder of their business was provided by over 100 manufacturing firms in Europe, the Middle East and the United States. At that time, CDI had 3000 temporary workers at any given point who could be shifted between several different cities to serve the needs of any given contract.
Establishment of in-house engineering facilities
In the early 1970s, in order to speed project completion, CDI established engineering facilities, within which outsourcedOutsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
projects could be worked from start to finish on company premises by employees of CDI prior to delivery to the customer. This project philosophy was more productive than sending workers to a client's location who may have little familiarity with the project. This business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
continued to expand to the point where close to 40% of CDI Corporation's work was performed within its own walls.
Purchase of Management Recruiters International
In 1972, the company purchased Management Recruiters International (MRI) for $1.3 million. Though the company was fledgling at the time of purchase, once it was acquired, offices began appearing all over the United States, most of them being franchises. Recruiting was CDI's top segment in terms of profit ratesProfit margin
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...
, focusing on middle management (supervisors earning between $25 000-125 000 United States Dollars), the most prominent segment of administration, many of whom were expected to make several career changes prior to settling on a longer term employer. Since this acquisition occurred during the baby-boom generation, there were likely to be a multitude of qualified managers to fill the company ranks. MRI was never more than a fraction of CDI's overall revenue, but the division provided as much as a third of the company's operating income.
Entry into the traditional temporary services market
During the recessions of 1974-1975 and 1982-1983, CDI learned that the technical services business was highly vulnerable to recession. At other times, the profit margins were quite slim, sometimes as low as 2.5%. For this reason, Garrison decided in 1982 to enter the traditional temporary services market involving clerical and entry-level workers. Adding offices as quickly as possible, the new division quickly went into the red, characterized as a reality of such expedient growth.In the late 1980s however, CDI's Temporary Services division strived for 500 offices. In 1989, this division reached 145 offices and $111 million in revenue without making any profit. Though 45 of their worst performing offices were eliminated, the division was still unprofitable. Nevertheless, Garrison decided to acquire Todays Temporary of Dallas, Texas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
for an undisclosed amount of money.
Engineering Solutions
Engineering Services provides designDesign
Design as a noun informally refers to a plan or convention for the construction of an object or a system while “to design” refers to making this plan...
, facility layout
Architecture
Architecture is both the process and product of planning, designing and construction. Architectural works, in the material form of buildings, are often perceived as cultural and political symbols and as works of art...
, outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
, logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
, project management
Project management
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
, staffing solutions and systems development to alternative energy
Alternative energy
Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels....
, biopharmaceutical
Biopharmaceutical
Biopharmaceuticals are medical drugs produced using biotechnology. They include proteins , nucleic acids and living microorganisms like virus and bacteria where the virulence of viruses and bacteria is reduced by the process of attenuation, they can be used for therapeutic or in vivo diagnostic...
, chemicals
Chemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...
, commercial aerospace
Commercial aviation
Commercial aviation is the part of civil aviation that involves operating aircraft for hire to transport passengers or cargo...
, defense industry
Defense industry
The defense industry, also called the military industry, comprises government and commercial industry involved in research, development, production, and service of military materiel, equipment and facilities...
, energy transmission, gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, heavy manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
, marine
Marine (ocean)
Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...
, military aerospace
Military aviation
Military aviation is the use of aircraft and other flying machines for the purposes of conducting or enabling warfare, including national airlift capacity to provide logistical supply to forces stationed in a theater or along a front. Air power includes the national means of conducting such...
, nuclear
Nuclear engineering
Nuclear engineering is the branch of engineering concerned with the application of the breakdown as well as the fusion of atomic nuclei and/or the application of other sub-atomic physics, based on the principles of nuclear physics...
, oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, pharmaceutical, power generation, regulated medical services and refining
Refining
Refining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...
organizations. CDI acquired the computer and technical services divisions of United Engineers Inc. in 1993.
IT Solutions
CDI IT Solutions provides information technology services such as direct placement of business consulting, employees, outsourcing and staffing augmentation.Management Recruiters International
Management Recruiters International is a franchisor that provides support services and training to franchisees that perform recruiting of executive, professional, supervisory and technical candidates.AndersElite
CDI AndersElite provides temporary and direct hire employees working in architecture, construction and other related fields.External links
- http://www.cdicorp.info
- CDI IT Solutions http://www.cdi-its.com
- MRINetwork http://www.mrinetwork.com/
- AndersElite http://www.anderselite.com