2022 ANNUAL REPORT
REACHING NEW HEIGHTS
REACHING NEW HEIGHTS
Stephen T. O’Rourke, Lead DIrector*
Matt R. Emerson
Pamela L. Feuerstein*
Brian G. Iverson*
Todd J. Kenner
Jason T. Love
Steve L. Steinheimer
Jay R. VanOrden*
*External Director
Todd J. Kenner, Chief Executive Officer
Jason T. Love, President
Philip A. Welling, Chief Financial Officer & Treasurer
Jason D. Miller, Chief Information Officer
Regina D. Crowell, Chief People Officer
Karla R. Lipp, Corporate Secretary
John S. L. Morgan
Matt R. Emerson, Infrastructure
Jay R. Nopola, Mining & Energy
Russell A. Persyn, Water & Natural Resources
Steve L. Steinheimer, Data & Technology Solutions
Debra A. Shewfelt**
Tabetha A. Stirrett**
**RESPEC Canadian Subsidiary
Karen A. Brady
Denise J. Brickley
Meagan L. Chaddick
Stephen Kan
Rick R. Moser
Daniel T. Rauchenstein
Tabetha A. Stirrett
We had a remarkable year of growth and progress: delivering exceptional client results, expanding our market presence, and enhancing our employee-owners.
We made strategic advancements through our acquisitions of DeLisi Fitzgerald, Inc. in Fort Myers, Florida, and SDG, Inc. in Denver, Colorado, as well as partnering with Saskatchewan First Nations Natural Resource Centre of Excellence in Kiyano Ventures. These new partners have strengthened our capabilities and expanded our market footprint. As we continue to diversify our presence across North America and in emerging markets, exciting opportunities await us.
RESPEC is at the forefront of cutting-edge advancements. Our progress in digital technologies, the energy transition, infrastructure resiliency, and sustainability have propelled us to new heights. We generated over $100 million in gross revenue for the first time. With the strongest earnings performance in the past 5 years and an impressive backlog exceeding $125 million, we are well-positioned to carry this momentum into 2023.
RESPEC employee-owners are the driving force behind our success. That’s why we remain focused on elevating our commitment to Passion, Accountability, Caring, and Teamwork. With PACT as our guiding principles, we have strengthened our workforce, enhanced employee-owner benefits, and opened more channels of communication.
RESPEC will always ensure our employee-owners have what they need to thrive.
Now, we see Vision 2025 on the horizon. As a 53-year-old company, we are building a sustainable future for many generations to come. We have appointed three employee-owners to executive leadership positions, establishing our newest line of succession and organizational sustainability. We also laid the groundwork for the RESPEC Foundation, which engages our employee-owners and financial resources to improve the quality of life for all.
What an exciting time to be a part of RESPEC! The success of 2022 has set the stage for even greater accomplishments in the years ahead. We are grateful for the commitment and contributions of our employee-owners and their families. We look forward to advancing the opportunities for our collective success.
Todd J. Kenner CHIEF EXECUTIVE OFFICER2022 wasn’t just another year for RESPEC. It was a transformative journey—a year of identifying our strengths and opportunities for advancement. We recognized that to achieve our goals, we must align our company culture with the values of our employee-owners. We embarked on a mission to enhance our strategy through employee-owner satisfaction. Beginning with a company-wide Great Place to Work survey, we sought to understand our employee-owners’ sentiments and define our decisions for the future. However, we didn’t stop there. We delved deeper and identified areas to improve—particularly communication and compensation.
86%
of
identified the company as
Providing employee-owners with a space to offer feedback, ideas, and constructive criticism propels our company forward, in both culture and overall strategic successes. The Great Place to Work survey was only the first step. With their fingers on the company’s pulse, RESPEC leadership visited offices across the country— from Fairbanks, Alaska, to Fort Myers, Florida—to meet face-to-face with our employee-owners. The open-forum town halls provided a place for questions, ideas, and discussion for strategies that help RESPEC succeed.
The town halls were a pivotal moment in our journey, opening the doors for more open and honest communication, which we continually strive to improve. We also made strides in our compensation strategy. As an employee-owned company, our success is tied directly to the success of our employee-owners. Over 50% of what RESPEC makes goes back to employeeowners annually through near- or long-term benefits.
In 2022, we took concrete action in response to the survey and town halls:
RESPEC is committed to a competitive compensation program that will attract, retain, and reward high-performing employee-owners. Our first ever company-wide compensation study reviewed employee-owner salaries and compared them to peers, market trends, and similar levels of experience and expertise. From there, we aligned compensations where needed.
RESPEC wanted to ensure that employee-owners had an easy path to entering the Employee Stock Ownership Plan (ESOP). Now, new employees become owners on their first day of employment. Tenured employees joining RESPEC through acquisition are fully vested as soon as they join the company.
Life is full of different chapters. Our employeeowners should have the support they need to navigate changes easily. That’s why RESPEC now offers 100% paid parental leave for our employee-owners, whether they are new parents or assisting older parents. This policy helps new parents and children to older parents have financial peace of mind.
RESPEC introduced a copay option for employee-owners as an alternative to the higherdeductible plan. We also absorbed some higher medical costs to help relieve the financial burden to our employee-owners. Then, we incorporated better plan structures to help families.
After years, sometimes decades, of extensive preparation and training, the view of the summit is often viewed as the apex of scaling these massive geological features. But the true fulfillment for a climber is the exhilaration of the entire journey and the milestones they pass along the way as they stretch themselves further than they ever imagined possible.
In 2022, our employee-owners continued to climb toward 2025, pushing forward to grow and achieve our goals—together.
“I’m inspired by RESPEC’s progress in achieving our Vision 2025 goals. Seeing us reach milestones that seemed ambitious has given me the confidence to believe that even greater accomplishments are within our reach.”
RANDY WILLIAMS, PE CENTRAL REGION MANAGER // ANCHORAGE, ALASKAWe’re committed to giving back. Under the guidance of our leadership program, we made tremendous strides in developing the RESPEC Foundation.
In 2022, we established the RESPEC Foundation’s employee-led Board of Advisors (BOA) to establish the Foundation’s vision, governance, and long-term funding. The BOA will establish funding for long-term humanitarian; science, technology, engineering, and math (STEM); and environmental programs. The BOA will provide structure and guidance for all company donations.
12
9 employees and 3 senior leaders serve on the RESPEC Foundation BOA
nternal development allows us to grow from within. To fulfill our vision of 4th generation of leadership by 2025, RESPEC promoted three employee-owners to leadership positions.
JAY NOPOLA
SENIOR VICE PRESIDENT // M&EJay will guide M&E to grow market sectors and oversee continued exploration of clean-energy projects.
TABETHA STIRRETT VICE PRESIDENT // M&ETabetha’s goals will stretch from technical expertise to fostering and developing client relationships.
KAREN
BRADY VICE PRESIDENT // INFKaren will focus on growing our people, expanding services, and supporting INF’s overall strategy.
Our foundation starts with our people. We diligently develop our employee-owners and promote internally. This all begins with our intern and leadership programs.
Our internship program empowers us to gain new perspectives, build relationships, and develop future industry leaders. In 2022, we welcomed 22 interns across the company—our largest class ever.
Our leadership program recognizes that our people are the catalyst for innovation and growth. We’re not only building leaders: we’re building listeners, learners, collaborators, and motivators. Our 2022 leadership class included 12 employee-owners.
59%
of RESPEC’s interns were retained in 2022, reflecting our “grow your own” and “hire-toretire” philosophies
Four years ago, RESPEC celebrated the $50M revenue milestone. Today, we passed $100M—a testament to our focus on creating opportunities.
In addition to growth, 2022 marked another fantastic year in RESPEC’s financial health, financial metrics, and our growing brand in the market. Profit margins are the strongest they have been in 10 years. RESPEC continues to share 50% (or more) of our earnings directly with employees through retirement and bonus programs. Our investments in markets and employees continue. From all of this, the ESOP celebrates its 25th consecutive year of a stock price increase.
We doubled revenues over the past 5 years to reach
$105 MILLION
“Growth is contagious. If you want to reach your goals, be around people and work for a corporation moving in the same direction. You will catch ‘the success.’ That’s why I choose to be a part of the RESPEC family.”
CAROL SMITH ACCOUNTANT // RAPID CITY, SOUTH DAKOTA
88%
RESPEC’s
value as of December 31, 2022, reached $152.40
We’ve achieved positive stock appreciation for 25 CONSECUTIVE YEARS
Compounded on an annual basis, RESPEC has achieved a double-digit percentage growth rate over the past 5 years. CLIENT RETENTION of clients with $100k+ in revenue were repeat clients in 2022
RESPEC continues to invest 50%+ of earnings directly back to employees through retirement and bonus programs
Since 2020, RESPEC has for future growth investments
RESPEC’s contracted backlog is $125 MILLION
Employer contributions for retirement, health insurance, and bonuses totaled
RETAINED
$9.2 MILLION
$2.0M
COMPLETED CASH 2022 Annual Report respec 8
As market trends evolve, RESPEC’s integration strategy continues as “one company.” In 2022, our business units leveraged each other’s strengths and technical capabilities, allowing them to cross-sell new services to existing clients and bring in new clients.
increase over 2021
2,200+ PROJECTS increase over 2021
RESPEC continues to build a North American company with global reach. Texas, Florida, and the Mountain Region have seen significant population growth, opening opportunities for more work and investments.
These strategic investments continue to push us forward.
With rising global market trends in infrastructure, energy, and sustainability, we’re able to leverage the full breadth of our expertise. We invested and grew our services in these areas with an acquisition, strategic hires, and a joint venture. With new services in new markets, we can thrive on a global scale, provide sustainable and innovative solutions, and meet the challenges ahead.
With the energy transition, cleanenergy exploration and development continue to grow, and many natural resource development projects occur on Indigenous lands. We partnered with the Saskatchewan First Nations Natural Resource Centre of Excellence to establish a majority Indigenous-owned joint venture, Kiyano Ventures (Kiyano). Kiyano spearheads sustainable engagement strategies to combat historical gaps between First Nations and the natural resource industry.
RESPEC grew its services in Florida’s west coast with the acquisition of DeLisi Fitzgerald, Inc. (DFI), a planning and civil engineering company in Fort Myers. This acquisition strengthens our Florida presence, expands our civil engineering and development services, and reinforces our expertise in permitting and environmental regulations. Pairing Sarasota’s water resource services with Fort Myer’s civil engineering and development services allows us to collaborate and offer more to clients—from Tampa to Fort Myers.
RESPEC added strategic hires from SDG, Inc. (SDG), a Denver-based structural engineering company recognized for its exceptional work with concrete water-storage tanks, forensic investigations, and structural rehabilitation. SDG’s innovation and creativity have led to multiple awardwinning projects across the region since 1983. They expand RESPEC’s structural engineering presence into the Lower 48, positioning Colorado as a central hub for structural support services in the western and central U.S.
“Our market strategies and investments prioritize building resilient communities. To succeed in today’s competitive landscape, it’s essential to offer solutions that withstand the test of time. It’s not just a job for us—it’s part of our culture.”
HERBERT RAYBOURN SENIOR STAFF ENGINEER // SARASOTA, FLORIDA
RESPEC’s investments in our service and geographic markets means we are well-positioned to leverage four megatrends rising in the A/E/C industry.
With work in these four areas, RESPEC is leading the way in building a sustainable, modern world, starting with advancements in renewable energy, integrated technology, and smart, resilient infrastructure.
As momentum grows toward a transfomative push to renewable energy, RESPEC balances the intersection between innovative technology and a sustainable environment. We lead the way for electrification, decarbonization, and hydrogen development, answering the calls to create a brighter future and secure improved opportunities for our communities.
RESPEC won the 2023 ACEC Engineering Excellence Award for our innovative emergency spillway design at Lisbon Pond. The design helps prevent flooding in Rio Rancho, New Mexico, where severe storms and flash floods have been historically devastating and costly.
Our modern world is bearing witness to a new industrial revolution: the rise of advanced datadriven and model-based technologies. RESPEC bridges our clients’ technology gaps with unique strategies. From better data collection and management to the latest developments in 3D modeling and computer-generated realities, RESPEC achieves better outcomes and meets evolving demands for any project.
At the forefront of delivering safe, resilient infrastructure, RESPEC ensures that our buildings, roads, and other structures can withstand natural and human-made disasters. By incorporating seismic-resistant design, flood protection, and fire-suppression systems, our approach minimizes damage and the loss of life to secure our communities, protect critical infrastructure, and reduce financial consequences.
Today’s decisions impact tomorrow’s world. RESPEC pioneers long-term sustainable solutions across our markets, whether in mining, infrastructure, community design, or water and environment. From abandoned mine land reclamation to multi-hazard mitigation to natural resource conservation, RESPEC is ushering in a better world for future generations.
From Alaska to Florida, RESPEC’s experts made a difference. We pushed boundaries and achieved greater outcomes for our clients, communities, and each other. By blending innovation with creativity and a commitment to excellence, we are leaving lasting impacts on the world around us for years to come. Explore the next pages for a glimpse into some of our greatest achievements and capabilities.
It’s hard to see into the future. But responding to disasters often starts before they happen.
The State of Montana asked RESPEC to weigh potential hazards for a state-level, multi-hazard mitigation plan. Our climate expertise, ability to engage with Indigenous communities, and knowledge across different markets made us the perfect partner.
First, we characterized Montana’s vulnerability to different hazards. Floods carve through roads and homes. Wildfires char forests. Earthquakes crack the land. But a well-
rounded multi-hazard mitigation plan must also consider various social hazards: cybersecurity breaches, mass violence, or a pandemic.
Once we identified potential disasters, we moved into the mitigation strategy, drafting preventative measures, projects, and planning efforts to develop the State’s response. Experts across RESPEC’s markets—from data and technology to infrastructure—are helping Montana better prepare for and respond to these disasters with a well-rounded, wellinformed, and effective mitigation plan.
Helping Montana implement a comprehensive state-level mitigation plan will reduce the risk of damage, loss of life, and financial impacts should disaster strike, and it will help the state secure federal funding for disaster-related responses.
State Historic Preservation Offices (SHPOs) play a crucial role in preserving culturally significant historical artifacts, but their workload has reached an overwhelming level because of increased infrastructure funding and stricter compliance and reporting requirements. With a growing number of construction projects to consult on, SHPOs lack the resources to get their jobs done, increasing stress levels.
RESPEC developed a cutting-edge digital solution that empowers SHPOs to manage their workload more efficiently. This software boasts fully digital submission capabilities and interactive websites for public and cultural consultants, providing SHPOs with the tools they need to easily prioritize, perform, and report their work more efficiently.
In 2022, gas prices skyrocketed. Electric vehicles (EVs) became a popular, eco-friendly alternative for transportation, leading to a surge in the need for lithium batteries that make them run.
Activity around lithium mining, exploration, and development for batteries has risen in the past couple of years, sparking what’s become known as the Lithium Battery Boom. Lithium batteries are lighter, easily rechargeable, and can pack more energy into smaller bodies. As the world pushes toward electrification, lithium mining will play a key role in the global shift to a sustainable, low-carbon future.
RESPEC’s mining and geologic experts are helping companies develop lithium clay and brine deposits in Nevada, Utah, and Arkansas. We help clients get permits from regulators; estimate resources and reserves; collect data; and manage geologic field logging, core processing, and drilling. With RESPEC’s help, these companies will be able to extract lithium responsibly and sustainably, ensuring that the Lithium Battery Boom benefits both the environment and the economy.
“Our digital solutions mean success for our clients. Each system we produce is like a time machine. With modern technology, we can help safeguard the past for our country’s future!”
ANDREA WORTHY PROGRAM MANAGER // RICHARDSON, TEXAS
When disaster strikes, every second counts. Reliable infrastructure is crucial in ensuring that critical assets remain operational. Sometimes, national security depends on it. In Alaska, RESPEC’s infrastructure experts supported the construction of a Risk Category V, Mission Critical 1 and 2 military installation. Our analysis of construction materials ensured that every aspect of the building, from mechanical to electrical to structural, can withstand earthquakes, electromagnetic pulses, or other potential threats. Now, no single point of failure exists.
Our virtual reality (VR) technology proved instrumental in addressing the United States Air Force (USAF) concerns about redesigning Joint Base Elmendorf-Richardson’s Boniface Visitor Control Center (VCC). The VCC’s new design emulated an Alaskan cabin aesthetic: a rustic wooden structure with high ceilings and large windows. But concerns arose. With the high ceilings, would there be enough light?
RESPEC and the architect exported models with full textures and manufacturer renderings into VR. The USAF walked through the three different designed models and saw how light would play into the final construction—well before final construction. The USAF approved the design, and the project proceeded.
A point cloud of the USCG boiler room, created from a LiDAR scan. This point cloud provides an exact digital representation of the project area, making it easier to develop a 3D model in which to work.
Light detection and ranging (LiDAR) scanning revolutionizes how clients interact with their projects. This advanced technology uses lasers to scan 360 degrees and create “point clouds” from data points. With these point clouds, we can render hyper-accurate 3D models. Our engineers used this technology to help the United States Coast Guard (USCG) replace four old boilers the size of school buses at their Kodiak, Alaska, base.
The USCG requested a two-phased design project: use LiDAR to accurately assess the building and boilers, then develop design phases to replace the boilers without impacting plant operations. We performed a LiDAR scan of the plant, collecting data points to create a 3D model of the plant and boilers. We moved the project online and gave the USCG drawing packages that showed phased work, keeping costs down and facilitating future funding. Now RESPEC is helping the USCG award the project in reasonable-sized amounts. No matter the project, RESPEC has the technology to push it forward.
“I love the opportunity to positively impact our clients. We’re on the cutting edge of technology—LiDAR is so definitive, there’s no question whether or not it’s accurate. The process is exhilarating!”
MIKE BARTELL
BIM DEVELOPMENT MANAGER // ANCHORAGE, ALASKA
$80M
The Federal Communications Commission (FCC) recently updated its mapping system to show where high-speed internet is and is not available in the U.S. The map is intended to help states receive access to better federal funding that will improve broadband for their residents. Unfortunately, for many rural communities who lack available resources to internet access, the map is inaccurate.
The State of New Mexico, which ranks 39th nationally for internet access, asked RESPEC to help its communities challenge the map and improve their broadband access and position. RESPEC carried out the review and challenge to the FCC mapping across the state, encouraging community participation, and reporting thousands of location and availability challenges in just 2 months. Now communities across New Mexico are better positioned to receive maximum funding for high-speed infrastructure investments—potentially $80 million.
When communities are without reliable internet access, they can fall behind, missing opportunities and resources. Our data and technology experts help communities overcome their digital divide and get the resources they need to thrive.
RESPEC’s work to promote and update the FCC Broadband Map in New Mexico has the potential to garner $80 million for the state.
In June 2022, a perfect combination of high precipitation and late snowmelt caused devastating floods to sweep across Yellowstone National Park. Swollen rivers swallowed entire road sections, stranding visitors and communities who rely on these roads as access points in the winter.
RESPEC’s Montana team, who has been working in the park on a bridge replacement project, shifted their attention to repairing the roads and getting access back before winter settled in. We teamed with Jacobs Engineering and Western Federal Lands to assess the damage and help with repair efforts. Jacobs Engineering worked on the road design; RESPEC focused on mitigating environmental impacts on the streams. Together, we integrated infrastructure resiliency to ensure longevity in future disasters.
RESPEC, Jacobs Engineering, Western Federal Lands, and Yellowstone staff combined efforts to design and construct the roads in 4 months— processes that often take several years. Now, the roads have been reestablished as access points for visitors and communities. When disasters like this happen, RESPEC and our partners pull together to get things done.
RESPEC’s work helped stranded communities regain critical road access before the snow fell in Yellowstone.
Coastal cities must protect themselves from natural disasters, especially as the frequency and severity of these events continue to rise. Now sea levels are inching higher and higher. The City of Holmes Beach (COHB), a coastal city in Florida, and RESPEC are proactively preparing for whatever Mother Nature throws its way.
RESPEC performed a risk assessment to identify COHB’s vulnerability to flooding from storm surges, high precipitation, and rising sea levels. Preparing for the impact of rising sea levels is equal parts science and art, developing solutions to events that haven’t occurred. Using LiDAR to gather information
about the city’s existing infrastructure and flood zones and adding estimated projections, we created models that offer the COHB a baseline map to show where flooding will occur under various conditions. From there, we can focus on protecting critical infrastructure and resources, such as evacuation routes, emergency centers, and wastewater treatment plants. The goal is to develop preliminary designs to create more resilient infrastructure for the future.
Acting now safeguards the COHB in the long run. With RESPEC at their side, the COHB is taking big steps to prepare for the worst by planning with the best.
Hydrogen development and storage are crucial to achieving a net-zero carbon future. Hydrogen is a versatile, renewable clean-energy source that produces zero carbon emissions and can be stored underground in aquifers, salt caverns, and mined rock caverns.
ACES Delta, a joint venture between Mitsubishi Power Americas, Inc. and Magnum Development, LLC, enlisted RESPEC to assist them in developing the world’s largest renewable energy hub in Delta, Utah. The facility aims to produce, store, and deliver green hydrogen to the western United States.
The geological mapping, geomechanical analysis, and laboratory testing we provide help ACES Delta select well locations, cavern placement, and cavern design. ACES Delta hopes to create multiple caverns for hydrogen storage in their Delta hub, meaning RESPEC will be helping develop the hub for many years. By helping write the formation testing programs, RESPEC is laying the groundwork for a future powered by clean, renewable hydrogen, creating a better world for us all.
“Leading the global energy transition is exciting. With RESPEC, I get to assist developers, private investors, and governments in developing energy storage facilities worldwide and make a huge difference in clean energy’s role for the future.”
JAI DUHAN
GEOMECHANICAL ENGINEER // RAPID CITY, SOUTH DAKOTA
of global energy demand in 2050
13% Hydrogen-based fuels are projected to account for
handed out 200 breakfast burritos to local riders participating in the citywide Bike to Work Day and participated in a blood drive to help local communities.
donated goods to Baba’s closet, which helps Ukrainian refugees receive free resources and essentials, and celebrated Indigenous Peoples’ Day by attending local celebrations, honorings, and events.
volunteered on Earth Day at the River Park, planting cottonwood trees and removing cockleburs and tamarisk from the river's edge with a local nonprofit, RiversEdge West.
volunteered their time to pick up trash on the roadside of El Pueblo Road NW.
sponsored a Hackathon at the University of North Texas, providing a coding challenge based on PACT.
RESPEC’s commitment to our core values of Passion, Accountability, Caring, and Teamwork—our PACT—inspires us to make a positive impact on the communities we serve. Through volunteering, charitable donations, and community outreach, we aim to create a better future for all. Here are a few ways we gave back to our communities in 2022.
BOZEMAN, MONTANA
participated in the Gallatin River Task Force Annual Clean Up to clean the Gallatin River.
RAPID CITY, SOUTH DAKOTA
cleaned up local creeks in honor of Caring Day.
LEXINGTON, KENTUCKY donated to communities affected by deadly floods in eastern Kentucky.
SARASOTA, FLORIDA organized a food drive for All Faiths Food Bank.