ANNUAL REPORT 2023
STEWARDSHIP
As employee owners and stewards of HDR, we work together to shape our industry, inspire creativity and innovation, and grow our company. Our collaborative approach to finding innovative solutions defined our past and drives our future. More than 100 years ago, our mission began by helping rural Midwest communities adapt to a changing world. Our impact continues today as we provide solutions to complex challenges for our clients across the globe. By promoting and practicing mindful stewardship of our communities and resources, we create shared value as we work to make the world better and safer for all.
John Henderson, CEO
Eric Keen, Chairman
A LETTER FROM OUR CHAIRMAN AND CEO
Employee ownership. Client-focused success. Deep technical expertise. Unparalleled work ethic.
This culture has made HDR successful for the past 106 years and will drive our success for the next 106 years. As leaders of HDR, we have the responsibility to operate as stewards of our culture as we continue to grow.
We are fortunate to have such a great history as an organization. It dates back to 1917, through the breadth and depth of services we bring to our clients across the globe, and doing so in a way that makes all of us proud.
Strong 2023 Performance
Over the past year, we have worked hard to meet the requirements of our clients and provide great service, which is fundamental to who we are as an organization. There are many noteworthy 2023 accomplishments that reflect this stewardship of our culture:
• All business groups met or exceeded plan.
• We saw growth in Canada, Europe and the Middle East.
• We substantially increased our workforce.
• We acquired City Point Partners to deepen our presence and relationships in the northeastern U.S.
“When I think about HDR, we’ve been so fortunate to have such a great history as an organization. It goes back to 1917, where we’re really focused on providing great service to our clients and doing it in a way that we’re all very proud of. And when I think about stewardship here at HDR, I think all of us as leaders, as employee owners, are all committed to this idea of being able to do what we can to make this the best organization going forward.”
Eric Keen, ChairmanOur team also demonstrated resilience while working with our clients through several challenges this year, including a very competitive talent market, inflation, high interest rates, supply chain challenges, and historic workloads. We are well-positioned to adapt and overcome the expected challenges in the coming year.
Our work does not just happen. It takes effort and collaboration to provide excellent services to our clients every day.
Preserving Our Culture
So, we would like to say “thank you” to our employees, who are delivering these results and creating the type of organization we can all be proud of going forward — an organization and a culture that is worth caring for and preserving.
We have produced strong results in 2023, and we are really excited about 2024 and what the future holds for all of us here at HDR.
Eric Keen:
As I think back on my time with HDR, I am really proud of the work we do for our clients. When I first joined the firm, we talked about the importance of deepening our technical expertise, our creative design approach to projects, and the work we do across all of our operating companies in all of our business groups. We started the HDR Foundation to help our communities. We do some amazing things, and it comes through some really good growth, along with our organizational expertise and generosity that enable us to accomplish those results.
Seamless Transition
In my transition into my new role as chairman, I look forward to collaborating with John and our Executive Leadership Team to facilitate a seamless transition through the end of 2024.
John is the right choice to lead HDR into the future. He is a talented and experienced leader who has earned the trust of our clients, company leaders and those who have worked with him inside and outside our industry.
I really want to thank John, not only for his leadership this past year as we worked through this transition but also for positioning us well for the future.
John Henderson:
On behalf of our 12,500 employee owners, congratulations to Eric and his wife Julie for their 30 years of dedicated service to our team, our clients and our communities. We are truly grateful for Eric’s significant and positive impacts on HDR and on our industry, and we look forward to his continued leadership in his new capacity.
Special thanks again to our entire team for what has been an incredibly successful year; it is their hard work, design and technical expertise, shared commitment to our clients, and resolve to always do the right thing that allow us to continue making great things possible.
“Special thanks again to our entire team for what has been an incredibly successful year; it is their hard work, design and technical expertise, shared commitment to our clients, and resolve to always do the right thing that allow us to continue making great things possible.”John Henderson, CEO
Thankful for Your Trust
Please accept my immense gratitude for your trust and confidence over this past year and throughout our transitions in leadership. Our success is not about any one of us — it is about all of us pulling together as a strong team of teams. It has been an honor to meet many of our teammates this past year and see firsthand our remarkable work, the depth of trust we have built with our clients and communities, and the impressive talent that serves as the foundation for all we do.
At the start of this new year, we have so much for which to be thankful: our culture, our clients, our long-standing reputation of trust, and each other.
As we move forward together, let us recommit to our continued success, the stewardship of our culture, the sustainment of our employee ownership model, and our client-focused approach.
John Henderson, CEO Eric Keen, ChairmanWe Celebrated These Achievements in 2023:
OUR INDUSTRY LEADERSHIP
#1 Architectural Firm in Healthcare Design Modern Healthcare Construction & Design Survey*
Top Laboratory Facility A/AE Firms
Building Design+Construction, Giants 400*
Largest 100% employee-owned architecture/engineering firm National Center for Employee Ownership*
OUR GLOBAL FOOTPRINT
12K+ Employees Worldwide
200+ Offices Around the Globe
#2
Top 100 Global Architecture Practices
World Architecture 100 Survey
Top Data Center A/AE Firms
Building Design+Construction, Giants 400*
Top Architecture/Engineering Firms
Building Design+Construction, Giants 400*
15 Countries
23 Envision-Verified Projects (more than any other firm)
#6
Top 500 Design Firms
Engineering News-Record*
*U.S.-based organizations and publications
Our goal is to empower everyone at HDR to plan and develop their career so we can foster leadership, grow expertise, retain talent and collectively enhance our knowledge base. Ultimately, we want to make it possible to change the world for the better.
Career Development
Our vast network of people and a wealth of resources help our employees grow their talents and knowledge through continual personal and professional development. Because, at HDR, the goal is not just about the next milestone; it is also about taking advantage of the many opportunities to learn and flourish along the way.
Career Connect — The Career Connect program is self-paced, customizable and accessible to any employee looking to develop leadership skills. The program is designed to be flexible, allowing anyone to start, stop or pause as needed. Those who complete any stage of this program will have had opportunities for professional development. But those who complete this program in its entirety will have demonstrated a keen knowledge of HDR’s business, as well as the self-management, interpersonal skills and focus necessary for the next generation of HDR leaders.
Mentoring — As a company focused on cultivating the best in each of us, we view mentoring as a positive way to boost individual development. By investing in the future, mentoring provides a competitive advantage — and by extension, a stronger, more resilient organization.
Corporate Sustainability
Our evolving Corporate Sustainability program builds upon our long-standing leadership in sustainability and resiliency. We want to connect what we do with community stewardship each and every day — to clients, educational leaders and organizations, civic and professional organizations, and our staff. We can be more conscientious stewards by listening and learning from stakeholders who live with the results of our work on a daily basis.
Inclusion, Diversity & Equity
HDR is our company. Together, we build on each other’s life experiences and perspectives to make great things possible every day. This shapes our collaborative culture, encourages organizational trust and connects us closer to the clients and communities we serve. As employee owners, we all have a role in creating an inclusive environment where we are welcomed, valued, respected and empowered to bring our authentic selves to work every day.
Our Day of Giving (“Building a World of Good”) again demonstrated the power of “giving back” with another record-setting year in 2023. Nearly 6,000 donors raised $1.71 million, and our Food Bank Challenge reached 50% participation with 85 offices (10-plus employees).
01. All Kids Bike
Various Locations, United States of America (HDR Foundation)
This popular program, now in its second year, has made lasting connections in our communities and offices. The HDR Foundation recently awarded a $360,000 Impact Grant to fund the successful learn-to-ride bike program at 40 school locations during the 2023-2024 school year. Through our first $150,000 grant, kindergartners at 25 schools learned to ride bikes during the 2022-2023 school year.
02. Between Friends
Calgary, Alberta, Canada (HDR Canada Fund)
A CA$8,279 grant will fund a new nature play park and sensory shed to promote inclusive recreational opportunities for children of all abilities. “This grant will enable them to construct a remarkable play area, fostering an inclusive environment where members of all ages can engage in activities without experiencing any sense of exclusion,” said Diego Ruiz, HDR rail engineer-in-training who sponsored the grant.
03. Inter-Faith Food Shuttle
Raleigh, North Carolina, United States of America (HDR Foundation)
This $23,514 grant will improve Inter-Faith Food Shuttle’s farming efficiency and effectiveness by purchasing a control system with sensors for their 74,000 pounds of harvested produce. The control system will help with monitoring and recording environmental conditions in the field and greenhouse.
Austin in Motion
Austin, Texas, United States of America
In 2016, Austin voters approved a $720 million bond package for transportation and mobility improvements, and city officials committed to implementing solutions within eight years. The City Council’s “Contract With Voters” guided the program funding and focused on reducing traffic congestion while prioritizing multimodal transportation service, connectivity, transit, and pedestrian access and safety. The program is further guided by a slate of community considerations, including affordable housing preservation and development, local business preservation and mixed-income housing.
01. Hugh K. Leatherman Terminal
North Charleston, South Carolina, United States of America
We played an integral role in creating the country’s newest container terminal. Serving as the project’s program manager, our team worked around challenging site conditions, waterways, roads and motorists to deliver millions of dollars in savings for the South Carolina Ports Authority. The terminal will further enable S.C. Ports to handle growing cargo volumes and mega container ships, helping South Carolina remain globally competitive.
02. Engineering and Strategic Communications Services for Water System Improvements
Jackson, Mississippi, United States of America
In August 2022, the Jackson water crisis gained national attention when severe storms caused flooding that forced the already frail O.B. Curtis Water Treatment Plant (WTP) to stop treating drinking water. In order to stabilize Jackson’s water system, an interim third-party manager (JXN Water, Inc.) engaged HDR to provide professional engineering and strategic communications services in support of drinking water system improvements. Our design improvements will increase the design life, reliability, safety and resiliency of the WTP.
01. Del Mar Tunnel
Southern California, United States of America
The accelerated erosion of the Del Mar Bluffs is the biggest threat to the Los Angeles-San Diego-San Luis Obispo corridor (LOSSAN). This project will enhance safety and reliability, and increase capacity along the LOSSAN corridor, which is a crucial economic lifeline for the region. The project will be the first on the corridor designed to accommodate train speeds up to 110 miles per hour, paving the way for future speed improvement projects on the corridor.
02. National Mall and Memorial Parks Seawall Rehabilitation Washington, D.C., United States of America
As the lead firm of a design joint venture, we are working with the National Park Service to rehabilitate these important seawalls that protect many of the United States’ iconic sites built near the Potomac River in Washington, D.C. The high-profile nature of the area, which attracts millions of visitors each year, is just one of the challenges. An aggressive schedule and a complex approval process required building consensus among many stakeholders for the best solutions.
America
Union County is one of the fastest-growing counties in the southeastern U.S., but it does not have a drinking water source within its boundaries. Our project team designed a new water intake and pump station, 30 miles of water supply transmission lines, a 12.6-million-gallon-per-day water treatment facility and 10 miles of drinking water transmission lines. The $260 million project allows Union County to serve a projected 115,000 customers in the Yadkin River Basin and also provide water for the Town of Norwood and Stanly County.
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© Mike Strauss
01. Western Sydney University Bankstown City Campus
Sydney, New South Wales, Australia
This collaborative project brings up to 10,000 students, 1,000 staff and various industry partners together in a highly accessible, technology-rich learning and research environment. The hybrid “omniverse” campus model will propel tertiary education architecture for years to come, transforming Western Sydney University into a thriving academic, innovation and research precinct.
02. Bustanica Vertical Farming Facility
Dubai, United Arab Emirates
Bringing sustainable food production to the Middle East, the three-story, 330,000-square-foot facility provides a controlled environment for producing more than 6,500 pounds of leafy greens every day, unaffected by outside factors such as weather or pests. Using hydroponics technology, the vertical farm does not need soil, natural sunlight or pesticides.
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01. Henry Ford Health Expansion
Detroit, Michigan, United States of America
One of the nation’s premier academic and integrated health systems, Henry Ford Health is vastly modernizing its campus through a 1-million-square-foot expansion, including a brand-new hospital facility and patient tower. Henry Ford Health aspires to be a leader in sustainability, and all design and construction decisions will aim to meet the goal of net-zero emissions by 2040.
02. Hiscox 22 Bishopsgate London, United Kingdom
Anticipating a relocation to its new London headquarters at 22 Bishopsgate, specialist insurer Hiscox aspired to create a space that physically expresses its culture, energy and ambition, celebrating the company’s love of art while delivering the best hybrid work and customer experience. Completed in February 2023, the striking sculptural design reimagines the space into a contemporary, stylish and elegant workplace. The project exemplifies sustainability, prioritizing the use of natural and, where possible, recycled materials.
03. Kiewit Luminarium Omaha, Nebraska, United States of America
This innovative community space and learning environment invites people of all ages and backgrounds to explore extraordinary phenomena at the intersection of science, art and human perception through interactive displays and engaging exhibits. The interior space is designed to be warm and inviting to suggest that science is friendly, familiar and approachable.
Minuteman Delta Sites 01 and 09
Wall, South Dakota, United States of America
This energy-efficient and ADA-compliant facility greatly appeals to visitors and provides a unique opportunity to reflect on a landscape that once held enormous nuclear power. The innovative building design and immersive exhibits at the new Visitor Center (artifacts, photographs, films and displays) explore the story of the Minuteman Missile as part of U.S. policy during the Cold War. The facility has evolved into a must-see destination that offers educational experiences to worldwide visitors eager to learn more about this historical period.
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01. Isabella Dam Safety Modifications
Lake Isabella, California, United States of America
In 2018, the U.S. Army Corps of Engineers ranked Isabella Dam as its No. 1 dam safety risk in the United States, and engineers subsequently developed plans to protect the more than 300,000 people living and working below the dam. The new Isabella weir structure was built as a pseudo-dam and was designed to regulate water flow through the emergency spillway rather than hold it back, compared to the main and auxiliary dams. The innovative structure type featured an arced and zig-zag labyrinth construction that maximized the volume able to flow over the weir.
02. Fifth Standard Solar Power and Battery Storage
Fresno, California, United States of America
This project adds 150 megawatts of solar photovoltaic capacity and 137 megawatts of battery energy storage to Pacific Gas & Electric’s (PG&E) grid. Developed and owned by RWE Clean Energy, the project, built on 1,600 acres, supports PG&E’s and California’s clean energy goals as the state works toward net-zero carbon emissions by 2045. The solar panels on site leverage a racking system with solar trackers, designed to follow the sun’s path, which increases energy output.
03. Canadian Nuclear Labs ‘New Builds’ Chalk River, Ontario, Canada
The symbiotic relationship between mass timber and Integrated Project Delivery has helped support Canadian Nuclear Labs’ transformation toward a more carbon-literate campus. The fixed and reconfigurable spaces adopt flexibility and modular design principles, allowing the facilities to remain relevant for their purpose over the timber’s lifetime. The revitalized site attracts talented new researchers and retains the staff who have been a part of the campus’ globally recognized research.
01. Platinum Recognition From APTA for Commitment to Sustainability
The American Public Transportation Association (APTA) recently awarded HDR a platinum recognition in its Sustainability Commitment Program. HDR is the second business member and seventh organization overall to earn the status since the program began in 2009. “We are thrilled to receive a platinum recognition from APTA,” said Pam Yonkin, HDR’s sustainability and resiliency director. “This affirms our deep commitment to sustainability and our hard work in giving clients the tools they need to achieve their sustainability goals.”
02. Developing an Advanced Water Treatment Process to Protect Public Health
Industrial Process Technology Lead John Schubert is advancing options for treating and eliminating PFAS compounds in wastewater. His project, currently underway at HDR, will be one of the first processes to tackle this growing problem — and in a cost-effective manner.
Armonk, New York, United States of America
Bear Gutter Creek is an important tributary for Kensico Reservoir — a source of drinking water for 9 million New Yorkers. The $5.5 million project transforms a defunct bowling alley into a 3.13-acre wetland habitat with a meandering, natural creek; abundant vegetation; in-stream structures; and a rejuvenated, modern streetscape. This project enhances local flood resilience, meets required habitat mitigation goals and helps to provide clean drinking water to New York City.
02. Merlot 3 Data Center
Melbourne, Victoria, Australia
NEXTDC Merlot 3 (M3) is set to house Australia’s largest and most comprehensive cloud ecosystem, accelerating industry growth in a decade of innovation through the use of modular and adaptable solutions. A “setback zone” features densely plated swales, trees and “pocket parks,” as well as a community café along the tree-lined perimeter, that gently transitions the site context from residential to industrial and puts community well-being first.
03. Advanced Water Treatment Pilot Support
Anne Arundel County, Maryland, United States of America
To improve long-term water supply resiliency and water quality in the Chesapeake Bay, Anne Arundel County’s water program is evaluating multiple management strategies to reduce nutrients and provide enhanced water supply options to the region. One piece of this strategy is to evaluate the feasibility of performing indirect potable reuse by adding advanced water treatment processes to its Patuxent Water Reclamation Facility.
