Diversified Machine Systems Inc. has defied the trend of manufacturers outsourcing production to Asia by expanding to boost production domestically.

The company formally opened its Colorado Springs plant Thursday. It will allow Diversified to double its 41-person work force during the next five years if it grows at its current rate, said Ed Hilligrass, executive vice president.

Diversified returned to the Springs from Texas after a four-year absence, taking advantage of a slumping real estate market to acquire a building where it now produces large precision cutting and shaping machines used to make electric guitars and other items.

"Quality is everything in this business because precision and accuracy are critical," Hilligrass said. "Our Chinese competitors cannot match the quality and durability of our machines. We can offer our customers high value at a reasonable price."

Mike Kazmierski, president of the Colorado Springs Economic Development Corp., called Diversified "the perfect example of niche manufacturing that will grow in the United States and not be outsourced to other countries" during a press conference at the new plant.

Diversified got its start in 2000, when owner Patrick Bollar set up an operation of his family's Motionmaster Inc. company in Colorado Springs to produce custom-made versions of the large precision cutting and shaping machines that Diversified now makes.

Motionmaster shut down three years later, forcing Bollar to scramble and set up Diversified to continue producing the machines for Motionmaster customers. Unable to find an affordable building for Diversified in the Springs, he moved the company to Texas.

Diversified grew quickly, doubling sales annually from 20 machines in its first year to 40 in its second, 80 last year and a projected 130 to 140 machines this year fueled in part by widening its product line with huge, high-end machines, Hilligrass said.

The company's largest model, which is just now hitting the market, sells for more than $1.8 million and weighs 80,000 pounds, Hilligrass said. To accommodate the latest expansion and additional space needed for the larger models, Diversified needed to move.

Bollar found a former indoor baseball facility near Interstate 25 and Circle Drive called the Bull Pen, which he acquired last year for $1.5 million and spent another $300,000 to renovate. It now houses Diversified's headquarters and manufacturing.

CONTACT THE WRITER: 636-0234 or wayneh@gazette.com