But I think we feel good with where we are in that space. Obviously, it’s, again, very local and very geographic. So you see kind of pockets of strength and pockets of resilience and then you see pockets that might be a little weaker. But it was encouraging that some of the geographies we saw weaker in the first quarter, specifically some of the states out west have seen improved performance as we moved through Q2.
Garik Shmois: Great. No, thanks for that. Just wanted to follow up on the planned kind of capacity in Florida. I was wondering if you could provide a little bit more detail around how much incremental capacity does that represent? Is it going to be displacing any older capacity or is this all purely incremental? And then just maybe just the timing around the project, just given some of the macro headwinds and recognizing it’s going to take some time for the facility to come online but just curious as to why now.
Scott Barbour: So this is Scott Barbour. Couple of things. One, it will not displace existing facilities. We have two really high-performing facilities in Winter Garden, Florida and Sebring, Florida that are doing a super job servicing that market, which is still a very, very strong market for us across all of our segments. So it is truly incremental capacity for us in that state, particularly around the work that is growing really fast in the DOT work and the residential work and our polypropylene pipe which is our highest performing tip of the spear pipe. We’re not going to disclose kind of number of lines or how many pounds we’re going to make or anything like that. At this point, we’re going to break ground early next year.
We’re closing on the property now. We’ve been working on this for some time and we had to move through the different stages of kind of getting prepared to announce it. We’re very excited about this. We need it in this region. It’s a very strong region for us, as we’ve been talking about for – I’ve been here six years now and I think we’ve been talking about this since the very beginning of how important the crescent is or that Southeast United States in these priority states and we’ve done a great job of growing there. We were 6x larger in Florida than we were 10 years ago, when we got the massive approval for our pipe products to be installed in public works down there. And so we’ve done a good job in our existing facilities, meeting that demand but we know that’s going to get better because we still understand we have room to grow in terms of penetration.
And I would expect this capacity to start to come online in 2025, calendar 2025.
Garik Shmois: Understood. Thanks for all that. And I’ll pass it on.
Operator: Your next question…
Scott Barbour: So sometimes you have to – no, go ahead.
Operator: Go ahead, sir.
Scott Barbour: So sometimes you have to invest now in periods like this, which we are doing to be ready for when these markets recover. As the market recovers, it’s too late. And I just – we were talking about Infiltrator a little earlier. Right after we bought Infiltrator in 2019, we approved within weeks, I think it was $40 million or $60 million of capital, a lot of capital, which was all incremental, people were worried about the residential market and all that kind of stuff and we needed that capacity over the last two or three years. And now that capacity is going full bore at great cost and that’s the performance you see there. So I just bring that up because, yes, times are a little uncertain. There’s no doubt about it.
But we have the capacity to continue to invest this capital to be ready for that upturn. And I think that’s what – one of the nice characteristics about the company, is we’ve been able to develop this really good cash flow and can go deploy that capital. So as we think about this Florida investment, this Infiltrator investment we made right after the acquisition, is kind of how we’re thinking about it. To be ready for the upturn, to be ready for these next legs of penetration gain, to be ready for these next legs of market upturn. So go ahead with the question, please.
