Karen Holcom: Sure, Jeff. At ABL, the sales decreases by vertical are really what you would expect to see. We had declines in Industrial. If you recall, last year, we had a lot of warehouse and logistics projects that were taking place. And then also, we’re seeing declines in health care and commercial office due to the impact of the wider macro environment. So really, nothing — kind of nothing surprising on the vertical front.
Neil Ashe: And on the renovation front, Jeff, I would say that change for us is good. So we’ve gotten a lot of questions about kind of what happens if the – in the commercial office space or the commercial around the broader lending environment, valuations, et cetera. And so I would just use – I think everybody saw the Wall Street Journal article about the building on Market Street in San Francisco that had a $300 million valuation in 2019 and then was sold for $60 million recently. So while it’s unpleasant experience for the capital side of that trade, the reality with that building is that it will now be reset at different rates, new tenants will move in and they will need to customize the space to what they want. And so they’re going to need lighting and lighting controls. So that’s kind of – so that’s anecdotally how renovation will play out for us over the next foreseeable future.
Jeffrey Sprague: Yes. And I guess that could be a two or three year process though, right, as kind of work from home and everything resettles. No great visibility on that, I would think. Could you just address a little bit more on also just on the price side. You were pretty explicit about managing the algorithm, right? And you’ve said it a couple of times, gross margin, lagging growth in the balance sheet to kind of leverage the capital base. But do you see an environment emerging where it, in fact, would make sense in that algorithm to just kind of overtly seed share in the name of protecting margins and cash flow? And do you see that sort of competitive pressure brewing or starting to emerge anywhere?
Neil Ashe: Yes, Jeff, the part of the reason we talk a lot about Contractor Select is that we have fundamentally changed our posture on product vitality. So we now have a product portfolio on a relatively consistent basis that is able to compete with all comers, and it allows us to deliver a margin at a price that’s competitive in the marketplace. So that’s a — I think about the strategy around Contractor Select as really like what Kirkland is to Costco Contractor Select is to the electrical distribution industry. In other words, it doesn’t necessarily have to be the lowest priced product out there, but it is the highest value price and is competitive – very competitive. That’s allowed us to be in a very interesting position.
And so we’ve tested this on price and whether we drive volume with price. And the – and we’ve had really good results on that. So a little bit can go a long way there, which allows us to manage that. And to your ultimate question about which one – which would we choose, I don’t think we will unnecessarily chase share if we think it’s going to impact us negatively on our value creation algorithm. So we are very competitive. We’re comfortable with our position in the marketplace from a competitive perspective because of the vitality and productivity improvements we’ve demonstrated. And so now we really want to – we want to make the lighting and lighting control business as predictable and repeatable and scalable as we can for a longer period of time, which would deliver value for a lot of us.
