Edward Benes, President & Deputy CEO, Leo A. Daly
Edward Benes, president and deputy CEO of design and engineering firm Leo A. Daly, spoke with Invest: about the various avenues of growth experienced by the firm over the last year, especially given its recent management transformation, and what these expansions mean for Dallas’ future business climate.
What have been some recent successes for LAN and Leo A. Daly?
We underwent an ownership transition early last year. We brought in an outside investor, Hennick & Company, and expanded our employee ownership model to support the strategic management of both firms, allowing us to invest further in our employees and expand our operations. This has allowed us to focus on defining our strategic goals as we aim to double in both size and revenue over the coming years.
Leo A. Daly is a leader in vertical design with expertise in hospitality, healthcare, interiors and aviation. Over the past year, we’ve achieved significant growth, particularly in the healthcare sector. We are the largest designer of VA facilities, and one of our key projects is currently underway in West Virginia. We also have a strong presence on the East Coast, Midwest, and California, with a robust project pipeline.
LAN, our civil engineering firm, has also had a phenomenal year, particularly in infrastructure projects across Texas, including the Dallas-Fort Worth area. LAN has also expanded its presence with offices in the Midwest and California, which has further strengthened our national footprint.
Can you elaborate on the expected changes in company culture as a result of the partnership with Hennick & Company?
This partnership will transform how our company operates by allowing our employees to become owners, creating a significant shift in perspective. People are now viewing the company through an ownership lens, which has sharpened our focus on growth and innovation. Hennick & Company has proven to be an excellent partner, bringing valuable experience from their investments in other architectural firms. They have been clear that while they offer their expertise, they trust us as the experts to run the business, providing support without interference.
Our aim is to attract and retain talent not only through competitive compensation packages but also by offering employees a clear path to ownership. This approach has allowed us to bring in top talent even as other markets face challenges. With our core markets experiencing strong growth, we need additional skilled professionals to keep up with and drive our expansion.
How do you see significant public and private investment in the healthcare and life sciences markets impacting businesses in the region?
From a federal perspective, the healthcare sector is expected to remain strong, with the government planning significant investments to better prepare for future pandemics and importantly, investing in and prioritizing care for Veterans. This focus will bring substantial funding aimed at improving healthcare infrastructure. Private healthcare also plays a crucial role, and there is significant business potential given the growing demand in this area.
Our aging population and outdated infrastructure are also driving increased demand for healthcare services, and the complexity of healthcare design is significant. Leo A. Daly and LAN have the expertise needed to address these challenges effectively. The continued growth of metro areas and healthcare hubs means we are well-positioned to take on large-scale projects. According to AIA forecast models, the healthcare sector is on an upward trend, which aligns with our own experience, as our project backlog continues to grow each month.
What is your overview of the real estate development sector in DFW, and what are the main challenges?
The cost of borrowing remains high. Until the Federal Reserve’s lower interest rates take full effect, we won’t see significant private sector investment. North Texas and the I35 corridor, with its substantial growth potential, presents many opportunities, but the residential market is still heavily influenced by borrowing costs.
In terms of infrastructure, the trend of migration from the North to the South is significant. Texas is one of the top five states experiencing the fastest population growth nationwide, which will continue to drive demand. The absence of state income taxes also encourages this growth. The Texas legislature has allocated billions of dollars for infrastructure development, focusing on roadways and water systems. This migration trend will also boost the amount of infrastructure investment needed. LAN is extremely well positioned to benefit from this surge in infrastructure investment, given our expertise and presence in the region.
Additionally, younger generations are increasingly drawn to mountain regions, and this demographic shift is influencing where talent is being recruited. While many people are relocating from the Midwest, and despite our aging infrastructure and the growing popularity of mountain areas, the DFW area will remain a significant population hub that will require continued development.
