2022 Annual Report v.8
Kicking Into
High Gear
2022 Kicks Into High Gear
Street Lee
Chief executive officer
Chief executive officer
McKim & Creed makes a difference in our communities by volunteering, fundraising, and making personal contributions to worthy causes, assisting fellow employee-owners affected by severe storm events, collaborating with industry organizations to improve the overall quality of solutions, and completing exciting and successful projects that improve our quality of life and build more sustainable communities.
Watch Street Lee's Letter to Shareholders
Financial Report
Geared Up For Another
Strong Year of Growth
Chris Nelson
Chief Financial Officer
Chief Financial Officer
I’m proud to say that McKim & Creed achieved another fantastic year of performance as we grew both revenue and profit by more than 20 percent over 2021!
Thank you to all our employee-owners for your contributions in 2022 and your commitment to continued success in 2023 and beyond!
Fast Facts
$162.0M
Bookings
$143.5M
Gross revenue
$116.4M
net revenue
$19.7M
Operating Profit
2022 Highlights
Geomatics
Geomatics had a phenomenal year with bookings up 29 percent, revenue growing 46 percent, and profit doubling year-over-year. Much of this is driven by growth in our Subsurface Utility Engineering group.
Water
Water exceeded its profit budget for the year (and grew profit by 27.5 percent over 2021) by having a strong second half to 2022 and increasing its backlog at year-end by 32.2 percent over 2021.
BEI
BEI continued to meet its financial targets with revenue and profit exceeding targets for 2022 and bookings growing 15 percent over 2021.
Industrial
Design-Build
Design-Build
Industrial Design-Build did not achieve its performance targets for 2022 but continues to be a strong contributor to our revenue and profit performance and creates new opportunities with our clients for our other services.
Stock Split
The Board of Directors authorized a 10-for-1 stock split at the end of 2022. This will provide better opportunities for our employees to become direct shareholders of the company as the value per share is now more affordable.
ESOP
Contributions
Contributions
We contributed over $14 million to our employee-owners through the ESOP, retiring shares from exiting owners, as well as performance-based profit-sharing, and bonus payments, in addition to funding growth and technology investments. The 2022 ESOP contribution will be equivalent to 10% of participant compensation.
Safety
Employees Drive
Firm's Safety Succuess
Heather DiRezze
Corporate Safety Officer
Corporate Safety Officer
Our 2022 MC-SAFE Safety Star and Safety Spot winners again took safety to the next level.
Check out this FUN safety video on the proper tools and technique for lifting manholes and storm grates.
Safety awards
Safety Spot Winners
Matt Piec
Scott Boyle
Sully Gibbs
Franklyn Saunders
Max Sanchez
Mari Argo
Safety Star Winners
Zack Rudd
Vincent Ayscue
Shawn Tuttle
Kyle Bostic
Q Award Winners
Q1
Shivanshu Vyas
Shivanshu Vyas
Q2
Josh Menor
Josh Menor
Q4
Giancarlo Ortiz Santana
Giancarlo Ortiz Santana
Q4
Scott Boyle
Scott Boyle
Employee-Ownership
The Gears Propelling forward motion
Our ownership culture sets us apart by creating an environment of teamwork and common purpose. Throughout 2022 we had the opportunity to interview employee-owners across our footprint about the importance of ownership.
“Every person from the CEO to an entry-level person, whether in the engineering field or the surveying field, they’re all equal. The field guys understand that if they make a mistake it hurts the ESOP. If they do something good, it helps the ESOP. It’s a total buy-in.”
“We all contribute, and we all work toward this goal together because we’ll all benefit. I can feel that in the company, and I could feel it before I even started working for McKim & Creed.”
“Being an employee-owner, you approach your work differently. It’s yours. It’s a company where you can reach out to the CEO and have a conversation. It’s that kind of an atmosphere.”
“The ESOP drives the motivation that people have, knowing that what they do today could directly impact their future.”
“As an employee-owner you feel as though you have a voice, skin in the game and you feel as though when you work hard and you see your fellow coworkers working hard, the company does well. And then we, as employees, are successful.”
“The ESOP provides a lot of personal ownership because we’re all employee-owners. We own part of the company, so everything we do goes into making the company better and therefore enriching us in the long run. I think that drives a solidarity of purpose for all employee owners. There’s a certain drive to make sure that we’re doing the best job and putting our best foot forward to make the company successful and therefore, ourselves, successful.”
“The ESOP is an awesome feature that we have here at McKim & Creed. It gives everybody a sense of ownership and with that sense of ownership, we want to take care of this company a little bit more.”
Strategic Plan
People Driving Force behind strategic plan initiatives
Matt Daves
Senior Vice President
Senior Vice President
While growth is at the plan's core, our people pillar remains our top prority.
Our employee-owners are dedicated to our 2025 Strategic Plan and growth objectives. By sticking together and building our backlog into 2023, we will be well-positioned to ensure that the value of our growth is returned directly to our employee-owners!
Visit the Portal anytime to review the strategic plan and view our 2025 update presentation.
2023 Major Goals
Launch manager and project management training initiatives.
Implement the firmwide skills matrix.
Develop innovative solutions under the auspices of the Innovation Committee.
Advance the service-specific growth.
2022 Strategic Plan Progress
Presented companywide cross-sell and business unit presentations.
Developed a mid-career professional training program outline.
Nominated another class for the Women’s Leadership Group.
Built an internal McKim & Creed recruiting team.
Completed an update to the strategic plan.
Business unit overview
BUILDINGS, ENERGY & INFRASTRUCTURE (BEI)
Strong forward motion for bei
Matt Daves
Business Unit Leader
Business Unit Leader
Our BEI team experienced another exceptional year of growth in 2022. I would like to thank all our BEI employees for their hard work and dedication this year. I would also like to thank all our business units and corporate support team as we continue to cross-sell work and support each other in new ways to make our total business better.
Our performance continues to be driven by our strong growth in sales, with BEI booking $20.8 million in 2022, exceeding our goal of $18.3 million. Momentum continues to build with this strength in backlog, and a strong pipeline continues for 2023.
Performance compared to 2021
14%
Profit growth
26%
Revenue growth
15%
Bookings growth
Click on any of the images below to open the image gallery.
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The University of Tampa North Campus Chiller Plant
Tampa, FL
In terms of campus size and student enrollment, the University of Tampa (UT) has grown significantly in recent years. McKim & Creed worked as a mechanical, electrical and plumbing (MEP) partner to increase the capacity of UT’s campus infrastructure to accommodate this growth. Our work includes four new 1,200-ton chillers and associated cooling towers, new underground piping to connect three additional buildings, the interconnection of two chilled water plants, and medium voltage distribution system upgrades. McKim & Creed’s work at UT will ensure that the university can comfortably manage growth for the foreseeable future.
Iron City Brewery
Pittsburgh, PA
Iron City Beer is more than just a local brewery; it’s a Pittsburgh tradition dating back to 1861. Iron City is owned by Pittsburgh Brewing Company and has a devoted following of proud Pittsburghers. So in 2007 when financial hardship hit and the brewery had to be moved from Pittsburgh, it felt like the city had lost a piece of important history. As one of only a few hundred breweries to survive prohibition, Iron City knows a thing or two about resiliency. In 2022, Iron City returned to Pittsburgh, and McKim & Creed was there to help provide a home worthy of its legacy. To support the facility and brewery operations, our team designed the HVAC system, a 600 HP high-pressure process steam plant, a 600-ton low-temperature chilled water plant, and a process compressed air plant, as well as distribution piping, plumbing, and electrical infrastructure. A distillery, restaurants, and entertainment venues are planned in the 140,000 SF space. McKim & Creed is proud to have been a part of this project that restored a beloved piece of Pittsburgh’s history.
UNC Health Tower Renovation
Chapel Hill, NC
UNC Health is a network of public hospitals and community clinics that serves over 800,000 patients each year. These medical facilities require high-performance mechanical, electrical, and plumbing systems to operate equipment, manage comfort conditions, and maintain sanitary standards for patients to receive the best possible care. McKim & Creed provided MEP engineering services to the Hillsborough campus, a newer facility providing acute care treatment, to convert its 7th floor into a new 45-bed surgical inpatient unit. Our engineering solutions will provide a comfortable environment for patients to recover after surgery while also providing medical staff with the underlying features and tools required to provide exceptional patient care.
Business unit overview Geomatics
Powering Into a new era
David Jones
Business Unit Leader
Business Unit Leader
TOM RUSCHKEWICZ
Business Unit Leader
Business Unit Leader
David Jones
Business Unit Leader
Business Unit Leader
TOM RUSCHKEWICZ
Business Unit Leader
Business Unit Leader
In 2022, our Geomatics group had its most successful year in the company’s history. The group thrived during several leadership transitions, including the retirement of President of Geomatics Tim Cawood in March and Regional Manager Tim Van Gelder in November.
We intend to expand the Geomatics Business Unit through 2023 and beyond and build on the successful foundation established. To better understand our opportunities and challenges and provide better support, we implemented business planning sessions with each region and service line across Geomatics. These sessions have provided us with an opportunity to develop business plans that are specific to each region and service line.
2022 Milestones
$62M
BOOKINGS
$60M
REVENUE
$24M
BACKLOG
100+
NEW EMPLOYEES
IN MEMORIUM
We recognize and honor longtime employee-owner Tom Halstead who, sadly, passed away in July of 2022. He was loved by all and was a mentor to many. He will be missed but will remain in our hearts and memories.
We recognize and honor longtime employee-owner Tom Halstead who, sadly, passed away in July of 2022. He was loved by all and was a mentor to many. He will be missed but will remain in our hearts and memories.
Click on any of the images below to open the image gallery.
Florida State Road 31 Design-Build
Babcock Ranch, FL
Babcock Ranch is a planned mixed-use community in southeastern Charlotte County and northeastern Lee County, Fla. The State Road (SR) 31 corridor is the primary north-south connection through what was historically a rural area. Because of an existing Florida Gas Transmission Company line adjacent to SR 31, the Florida Department of Transportation (FDOT) determined that widening the corridor was impossible. The Babcock Ranch Community Independent Special District then entered into a progressive design-build contract with FDOT to implement interim proposed improvements to SR 31, which included constructing a new four-lane roadway east of the existing SR 31 roadway (in Lee County), transitioning to the existing roadway, and widening the existing road to a divided four-lane section (in Charlotte County). Within Lee County, the existing roadway will become an access road. McKim & Creed provided a virgin corridor survey using aerial LiDAR and traditional survey, as well as SUE and mapping, to prepare for the new roadway.
Hudson River Troy Lock &
Dam Scan
Troy, NY
McKim & Creed used aerial LiDAR, terrestrial LiDAR, and hydrographic surveying to provide vital information to the United States Army Corps of Engineers New York District (USACE NYD) for its Troy Lock Bulkhead Recess Rehabilitation Project. To assist in identifying areas of distress, our Hydrographic Survey group provided a full point cloud and detailed image of the walls, lock and river bottom, underwater monoliths, and miter gate recesses. A survey-grade LiDAR point cloud and detailed photographs were collected using the new NavVis VLX scanner to create a 3D model of the portion of the lock above the water’s surface. The LiDAR data collected aided in the creation of a CAD model that detailed the concrete structures, buildings, floor grates, vaults, and bulkhead recesses. The data was delivered to the client as a web-based “walk-through,” allowing the engineers to virtually immerse themselves in the site. The Troy Lock Bulkhead Recess Rehabilitation Project also benefited from UAS LiDAR and imagery collection.
Dallas County Roadway Improvements
Dallas, TX
To improve traffic flow, the Texas Department of Transportation (TxDOT) needed to improve roadways near the Dallas Fort Worth International Airport. McKim & Creed provided surveys of a five-mile-long stretch of Texas State Highway (SH) 114 using aerial mapping, remote sensing, hydrographic surveys of waterways, and utility locating using crews from Houston, Stafford, and Addison, as well as technical staff from Houston and Addison. In addition to flying unmanned fixed-wing aerial systems (UAS), LiDAR imagery of a 2,000-foot-wide corridor near a major airport, and adhering to FAA regulations, our team was tasked with providing TxDOT with an existing right of way (ROW) base map, 2D planimetric file and 3D digital terrain models (DTM) of the corridor. The most recent ROW maps we were given ranged from 1929 to 1984, so our team dug through countless county records to find deeds and subdivision plats to accurately define the additional location of existing ROW acquisition, going above and beyond to meet our client’s needs.
Business unit overview Industrial Design-Build
Steady work prepared way for future success
Tom Lawry
Business Unit Leader
Business Unit Leader
In 2022, the Industrial Design-Build (IDB) group worked hard to build backlog and deliver innovative solutions for our water and wastewater clients. This year we diversified our client base and project portfolio, expanding into new markets. We relied on existing relationships to uncover engineering opportunities and kept our eyes and ears open for new design-build opportunities.
I continue to be proud of the work we do and can’t wait to report back on our successes next year!
2022 Project Success
Containerized pumping and metering systems turned technical potential into design-build projects.
We helped legacy power, refining, and private utility clients comply with evolving regulations.
Six steel mill engineering and equipment procurement contracts helped us break into the metals business.
We booked the $18 million Piney Point pretreatment system—a major project win.
Began engineering for our first recirculating aquaculture system (fish farm).
Completed hydraulic analysis and project feasibility assessments for several fresh and brine water pipelines.
Arsenic Compliance Design-Build Project
Langeloth, PA
Langeloth Metallurgical Co. conducted a Toxic Reduction Evaluation (TRE) under the direction of the Pennsylvania Department of Environmental Protection (PADEP) to determine a course of action to reduce the plant’s effluent arsenic concentration—an issue critical to the refinery’s future operation. McKim & Creed provided system evaluation, treatment modification recommendations, and recommendations for pilot testing. McKim & Creed then completed the design, permitting, procurement, installation, and commissioning of the wastewater treatment system modifications, allowing for arsenic reduction in the weak acid blowdown stream to meet discharge limits. The upgraded system has been operational since mid-2022.
Butler Works Evaluation
Lydnora, PA
Cleveland Cliffs, North America’s largest flat-rolled steel producer, experienced a series of issues at its Butler Works facility that hampered its ability to operate efficiently. McKim & Creed was hired to assess a variety of aspects of the plant’s water and wastewater operations. Melting occurs in an electric arc furnace (EAF), which supplies an argon-oxygen decarburization unit for specialty steels. Two double-strand continuous casters are fed by a ladle metallurgy furnace. The 3.5 million square feet of buildings house electrical and stainless-steel melting and casting, hot-roll, cold-roll, and finishing operations. McKim & Creed’s services included the engineering of a scale pit oil removal system, the evaluation of a stormwater management system, and the inspection of stormwater pipes.
12-Mile Bayou Freshwater Withdrawal Project
Shreveport, LA
Previous successful Trinity Operating (Trinity) projects resulted in our selection to complete a design-build project on the 12-Mile Bayou to construct an intake pump station and pipeline to transport six million gallons of water per day from the 12-Mile Bayou to a freshwater impoundment in Caddo Parish, Louisiana. McKim & Creed assisted Trinity in determining the best water source and saved the company a significant amount of money by recommending and installing a pipeline system to support its hydraulic fracturing operations. As part of the system, four miles of 18-inch HDPE water lines were installed. We also designed a floating pump station with two 400-horsepower vertical turbine pumps and an access gangway for routine pump maintenance. The pump station was powered and controlled by a McKim & Creed provided electrical container that was pre-wired and tested on before it was delivered. McKim & Creed assisted the client in planning the project, obtaining environmental approvals, designing the system, procurement of construction materials, and completing the construction.
Business Unit Overview
Planning, Development & Natural Resources (PDNR)
Riding the wave
Grant livengood
Business Unit Leader
Business Unit Leader
2022 brought successes and challenges. The residential sector started the year with a tsunami-like economy.
We’re continuing to cross-sell and support collaboration with the company’s other service groups. In 2022, PDNR provided stormwater, erosion control, utility coordination, and permitting on over 35 projects led by other service groups. We’re excited to grow this pipeline in 2023. We have a strong pipeline with over $12 million in project leads. These opportunities will supplement our strong backlog from 2022.
We are excited about the ride that 2023 has to offer and about building on our financial success as we continue to nurture a culture of people-helping-people.
2023 Goals
We aim to boost revenue and profit by 10 percent in 2023.
We will continue to focus on organic growth with key strategic hires in all our locations.
Our Houston office will focus on increasing our residential market share.
We want to grow our municipal stormwater support in the Tampa Bay region while adding new land development clients.
Our team in North Carolina will expand work for industrial manufacturing, institutional, and renewable energy clients.
With expected future increases in interest rates, diversifying our client base will continue to mitigate the impact on residential markets.
We will continue to explore strategic acquisitions that will help PDNR expand services and geographies.
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Pender Commerce Park Cold Storage Facility
Wilmington, NC
The pandemic and the subsequent rise in demand for grocery deliveries created a need for cold storage facilities to allow fresh, perishable foods to travel from one part of the world to another without putting the integrity of the foods at risk. The Pender Commerce Park Cold Storage Facility will target refrigerated markets of poultry, pork, bananas, potatoes, and seafood coming from the Port of Wilmington. Facility owner NC Wilmington Corporate, LLC hired McKim & Creed to provide civil site work, including landscape architecture, permit entitlements, construction observation, and close-out documents. During design and construction, the client opted to achieve LEED Gold Certification. To help accomplish this, McKim & Creed designed a roof rainwater collection and pumping system to provide rainwater runoff for toilet flushing and chiller. The project also incorporates two solar panel arrays for backfeed of electricity and for generator power. This is the fourth industrial facility within Pender Commerce Park for which McKim & Creed has provided services.
Sidbury Station
Wilmington, NC
D.R. Horton’s Sidbury Station residential development took nearly two decades to complete and ultimately relied on services from McKim & Creed’s PDNR, Water, and Geomatics groups. Our team maintained a relationship with the developer, allowing us to stay top-of-mind during a nearly 12-year span of time while we worked with the area’s landowners and regulatory community to adopt a new Unified Development Ordinance. We also worked with Cape Fear Public Utility Authority to bring water and wastewater infrastructure to this most northern section of New Hanover County. McKim & Creed’s Water team designed and built more than four miles of water and sewer mains to open this north corridor of the county for development. Our PDNR group provided civil site work, including zoning and land planning, for all three phases of this 315-acre development, which will eventually include 789 new homes. The first phase of construction is complete. The second phase will begin construction in early 2023. The third phase is now in design.
Burnt Store Water Reclamation Facility Expansion
Charlotte County, FL
Charlotte County hired McKim & Creed to provide master planning, preliminary engineering, design, and construction phase services in three distinct, overlapping, and integrated phases to replace the 0.5 MGD Burnt Store Water Reclamation Facility with a 2.5 MGD facility that can expand to 7.5 MGD to meet the area’s recent and anticipated growth. Our Tampa based PDNR team assisted our Water group with site/civil design, drafting, and permitting for the facility expansion. This project included watershed models on over 2,000 acres, 11 ponds, miles of roads, and grading around 15 structures.
Business Unit Overview Water
Riding the wave
Street LEE
Business Unit Leader
Business Unit Leader
Our Water business experienced another successful year in 2022. We completed a host of projects and consulting assignments to help our clients and our communities effectively manage our water resources. Our efforts to expand business were successful in 2022 and have positioned us for continued revenue growth in 2023. Our backlog of work under contract increased year-over-year by 21.6 percent, to more than $49.6 million.
We have added key new staff members, headlined by the addition of Rob Stout who will lead our Water Business Unit. I’m excited to see Rob and the leadership of the Water Group take us to the next level of growth and project success!
Click on any of the images below to open the image gallery.
Fish Bayou Control Structures
Ascension Parish, LA
The Pontchartrain Levee District required assistance in reducing flood risk, specifically in reducing flood duration within the Bluff Swamp. McKim & Creed’s team contributed to reducing flooding by restoring Fish Bayou’s conveyance into Bayou Manchac through the construction of two 12-by-12-foot reinforced concrete box (RCB) gated control structures controlled through SCADA. The control structures were designed to remain open during low water events and to close once Bayou Manchac reaches four feet in elevation and above, protecting both Iberville and Ascension Parishes from backwater flooding along Bayou Manchac. The gates will remain closed until the waters along Bayou Manchac have receded enough to create a head differential, allowing Bluff Swamp and Spanish Lake to drain.
Eno River Outfall & Lift Station Upgrades
City of Durham, NC
The City of Durham upgraded its critical infrastructure to accommodate growth in the service area as the Eno River Watershed reached capacity. The solution included replacing 25,000 linear feet of 24-inch to 48-inch gravity sewer outfalls along the Eno River in Durham to the Eno River Lift Station. The Eno River Outfall and Lift Station Upgrades project included the replacement of over 17,000 linear feet of sanitary sewer outfall pipe along Warren Creek and the Eno River, as well as increased capacity of the Eno River Lift Station from 15.8 MGD to 24.4 MGD. The pump station upgrades included adding a third 500-horsepower pump, removing existing bar screens, and replacing them with mechanical channel grinders, improving the hydraulics of the incoming outfalls, installing a permanent jib crane for grinder removal, replacing the existing downstream flow meter, installing a permanent pump station bypass system, and improving the electrical and SCADA systems. McKim & Creed’s work was recognized with an ACEC/NC Engineering Excellence Honor Award in 2023.
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Tampa Water Improvement Program
Tampa, FL
The Tampa Water Main Improvement Program focused on the replacement of approximately 102,500 linear feet of water mains up to 24-inch in diameter across 20 project areas within the City of Tampa’s water service area. The program targeted undersized and older pipelines, as well as the removal of parallel and redundant water mains, to improve service and water quality. The City is utilizing progressive design-build to complete the multi-faceted program, and McKim & Creed is partnered with Westra Construction Company to accomplish the work. Our team collaborated with the City of Tampa to prioritize and group seven non-contiguous water main replacement service areas in the downtown business district into three distinct design and construction packages. The team was able to mitigate water loss in high-risk areas while minimizing community impacts in areas such as Tampa’s downtown business district, residential areas, and the University of Tampa’s campus.
Multi-Use Path and Wetlands Trail
Gulf Breeze, FL
The Multi-Use Path and Wetlands Trail Boardwalk offers Santa Rosa County residents and visitors a new multi-modal connection between local neighborhoods, community destinations, and natural amenities. McKim & Creed designed a nearly four-mile-long, 10-foot-wide multi-use pathway around the City of Gulf Breeze’s Shoreline Drive and Fairpoint Drive loop. Safety improvements at side-street crossings and new mid-block crossings at critical locations were part of the project, as was the rehabilitation of an existing five-foot sidewalk around the loop to provide an ADA-compliant path. Our team expanded its services to include structural engineering for a separate 1,600-foot pile-supported wood boardwalk that provided new public access to the area’s pristine wetlands habitat and shoreline beaches. Our team engaged in extensive public outreach, including a Map Workshop and an in-field Awareness Walk, to educate the public and gather feedback that was used to help steer the final vision and implementation of these projects.
