But that’s going to put pressure on the M&D. But if you kind of segment that outside of M&D, M&D as a whole is still going to grow high single-digit, low double-digit. It still has all the compelling factors about it. It’s just we have to think about kind of the impediment with this one rebid, but we feel good about that segment. But I think it’s just too early to tell whether or not — this is going to be margin accretive next year. It’s going to be flat, but we do think there’s going to be some pressure on the revenue side. But again, just reaffirming, it’s just such a terrific segment for us. So I think this is more about an episodic event than any kind of structural change.
Andrew Wittmann: Okay. That makes sense. I guess for my follow-up let’s talk maybe about ATS. The early COVID money from the federal government impacted schools in several ways, but one of them was on capital projects for ventilation and air conditioning projects. Many schools have gone ahead and done those. And I think your business, correct me, if I’m wrong, did benefit from that. How much of some of the pressures that you’re seeing in that part of, I mean, you talked about EV being good. You talked about microgrids being good, but this bundled Energy Solutions business, which is the education business largely is seeing some pressure. Is it just — is it a tough compare from the federal dollars that’s kind of propped up that market for a couple of years. I know you mentioned interest rates. But is there this other effect as well? Or do you not see that as being one of the reasons for some of the pressure you’re seeing today there?
Scott Salmirs: Yes. I think it’s like — I don’t want to oversimplify it, but so much of this is weighted towards interest rates because what happens, Andy, is that these are all highly financed, almost 100% financed, right? So when a school is looking at their infrastructure and a large-scale project that they want to put forward, they do that against the interest rate environment and the ROI against it. And when interest rates go up like this, it just puts pressure on those ROIs. And then what starts happening as you start going through this triage process where there are some schools that irregardless of the ROI have to make these changes to their air conditioning systems to the lighting and they still move ahead. And that’s why our BES segment isn’t zero, right?
It’s just — it’s got pressure, but there are still projects that are happening. Where we’re seeing the pressure is those projects that it’s more of a nice to have. It’s on the fringe, and now the ROIs get to a place where a lot of them aren’t even canceling the projects, they’re just kicking the can because they want to do them, but they’re protracting them. So — and that’s why because we don’t think the interest rate environment is going to dramatically change anytime soon, we think there could be pressure in ’24. But the BES segment is kind of alive and well. And if you were to take like a five-year view, we’re as excited as ever. But I think until we get a little relief on interest rates and the ROIs become more compelling, they’ll have pressure.
And now as we look at it, just to finish it up, as we start hunting again, we’re now hunting for projects where it’s not necessarily just about ROI on the fringe. We’re looking at school districts where it’s like they have to do these projects. But that takes time. There’s a lead time on that. But it’s — interest rates is the majority of it, Andy.
