Page 23 - Shareholders Report 2023
P. 23
MARKETS & DIVISIONS
GOVERNMENT DESIGN HEALTHCARE DESIGN
DIVISION OF DESIGN SERVICES DIVISION OF DESIGN SERVICES
Sales in the Government Design Division were Sales for the Healthcare Design Division in 2023
$19.8 million against a target of $13 million, a were $5.8 million against a target of $10 million.
19% increase from 2022. There was a total of Personnel losses in business development and
$10.8 million in sales from the U.S. Army Corps of marketing contributed significantly to the
EMORY UNIVERSITY HOSPITAL
Engineers (USACE), including task orders under unachieved sales. Additional business development 4T INTENSIVE CARE UNIT ROOM
a new Sacramento District indefinite delivery/ resources were added to start 2024. The addition ATLANTA, GEORGIA
indefinite quantity (IDIQ) for $1.7 million, with of these team members is anticipated to help
reserve options for future design phases and build backlog for 2024 and beyond. A strong INDUSTRIAL DESIGN
two additional projects awarded for 2024. The relationship with Self Regional Healthcare DIVISION OF DESIGN SERVICES
Louisville District was the top USACE District continues to yield additional sales and projects.
for 2023, with over $5 million in task orders or Also, pursuits with both Novant Health and Sales in the Industrial Design Division were
modifications awarded. Task orders through Piedmont Healthcare offer promising potential for $25 million against a budget of $20 million,
the Air Force topped $3.8 million, and the 2024. The pipeline going into 2024 is $5.3 million. with 60% of total sales coming from three
Oklahoma Military Department started several companies: Nestle Purina at $9 million, 1440
selection of clients
key projects in 2023 at an unprecedented Foods at $4.2 million and AB InBev at $2.8
annual total of more than $3 million. million. It should be noted that 1440 Foods
was a new client in 2023 and has the potential
USACE revised the Task Order Requirement FOOD-BEV-PHARMA PROCESS DESIGN to convert to a design-build opportunity for
Notification (TORN) process and will no DIVISION OF DESIGN SERVICES Haskell. In addition, both Molson-Coors and
longer require supplement information to be Unilever had total annual sales of more than $1
submitted for all task order selections, therefore The Food, Beverage, Pharmaceutical and Dairy million. The team delivered over 140 projects
an annual update to each SF330 submission process team completed over 40 projects in 2023 to 38 clients in addition to supporting multiple
is required to better position for upcoming as it transitioned from its legacy group to D&C and Haskell design-build and EPC projects. The
opportunities. Teaming agreements continue took on a self-sell responsibility. The year finished division developed multiple design-build/EPC
to be a successful strategy for competing and above budget for revenue by $3.8 million, profit project opportunities through initial fee-for-
acquiring government contracts, particularly by $200,000 and overhead expenses by $800,000 service project engagements. Total revenue
for larger, complex contracts. Revenue for 2023 while also meeting the sales goal. Margin increased for 2023 was $24.9 million on a budget of $20
was $16 million against a budget of $13 million, to 32% from 28% year over year. HP Hood, Kroger, million, with project profitability increasing
with an average profitability of 28% on more Nestle, Leprino, Genentech and Eli Lilly continue from 23% to 28% year over year. Backlog
than 75 projects. The backlog entering 2024 to be the big contributors. The greatest 2023 entering 2024 was $5 million, and the pipeline
was $9 million, which is similar to the backlog effort was completing the detailed design for entering 2024 is as strong as last year.
in 2023, and the outlook is for a strong year. Leprino Foods’ new facility in Lubbock, Texas.
selection of clients
selection of clients selection of clients
2023 Annual Report to Shareholders ◆ Haskell 21
