Min Cho : And in terms of your material handling that side of the business, I know Ryan mentioned kind of a focus on the warehousing, which does tend to be a little bit lower margin, but I would imagine that you’re seeing an increased shift into like electrical or electric lifts. I was just wondering how does that impact your margins? Is that more or less positive for your parts and service opportunities longer term?
Tony Colucci : I can take that one as well. We actually have some data in our 10-K or reference in our 10-K Min that the International Truck Association put out some, some data the other day that suggests 67%, 2/3 let’s call it of all forklifts sold in the U.S. are electrified. You can probably flip that deal versus gas or diesel or I should say propane or diesel. You could flip that on its head in 20 years ago, something like that. And so, the trend continues, it’s leveled off a little bit, but the electrification of forklift has kind of already come to the market. So any impact on our business would be minimal. What we know just because of cost accounting exercises internally is that we think an electric truck basically yields 65% to 70% of what a gas truck would relative to parts and service.
But that’s been the case in our business for quite some time. So the further electrification, we’d like to think that we could — any offset in product support or any impact in product support of any furtherance of electrification in the material handling business would be more than offset by our prowess and charging and alternative energy. And some of these things that are a little bit more cutting edge, lithium prowess and lithium batteries, et cetera.
Ryan Greenawalt : Min this is Ryan. Another thing I wanted to just make sure we correct is that on the warehouse product the margins are actually higher on selling the new vehicle versus rider forklifts. So I’m might have been a misunderstanding there, but less product support yield on electric, but certainly more margin on the front end.
Min Cho : And then, I guess, just an update on Nikola. Saw that they produced and sold some of their hydrogen fuel trucks and looks like some of their BEV trucks should be kind of back in the market second half, probably not a big impact for you in 2024, but just wondering if you could talk to kind of how you’re doing with that relationship?
Ryan Greenawalt: Yes, I could take that. This is Ryan. So we’ve been along with our customers patiently waiting for the recall to be executed upon. And as you read, that’s going to start in earnest in Q2. What we’re really excited about continues to be the — we think in our marketplace, where our footprint is in the North that the proposition for long haul transportation on battery electric, it’s a very narrow strike zone of application relative to the opportunity for longer haul and for heavier duty, which is going to point towards a hydrogen solution. And they’ve sold their first fleet of trucks. Right now they’re focused on California where there’s a little bit of infrastructure, but we remain very excited about our strategic footprint.
We think outside of the West Coast, where we reside is going to be where there’s early adoption of these types of vehicles and we think we’re well positioned to be part of it. But to answer the first part of your question, probably not a huge material impact this year. It’s going to really start in the second half. And this recall on the electric side feels like it costs us almost a calendar year of momentum, but it’s not dead. There’s still a building pipeline of demand and we’re hopeful that they can execute on this next piece of the strategy, which is to get those trucks back in the field.
Operator: Next question is from the line of Ted Jackson with Northland Securities.
Ted Jackson: Congratulation on the quarter and year. So my first question is rolling over to kind of M&A pipeline. I’m just kind of curious when you’re looking through the opportunities there in front of you, are you seeing more opportunity on the construction side or on the material handling side? And then within those opportunities, is it more kind of tuck-in and filling in, you would, your geographic footprint? Or is it pushing you into new geographies? It’s question number one. Two parts.
Ryan Greenawalt : Yes, I’ll take the first part of that because it’s pretty easy to delineate material handling versus construction in terms of the growth strategy. With Hyster-Yale, the lines of our exclusivity are much firmer. And we can’t compete with any other dealer network globally outside of we have our APR that’s exclusive with them and that’s our APR for material handling for forklifts kind of that piece of the business. Our growth with Hyster-Yale, there is potential growth with them. We’re the second largest dealer in the world for Hyster-Yale. Today, we cover north of 20% of the addressable market for U.S. and Canada. And they’ve been very open about trying to get their dealer network down to a manageable size and there’s still there’s a little room to go there.
And there’s also the opportunity to grow internationally, which we started with the investment in Canada with YIT. On the construction side, it’s a much broader category as what we define as construction equipment. It’s everything from the small, turf and agricultural type things that we sell in Northern Michigan through our Kubota dealership and in areas of Chicago, all the way up to the link belt cranes that we represent in Michigan. And so it’s a much more open playing field. There are many more types equipment dealers. It’s a much more, I guess, fertile area for consolidation for us today. We’re in the later innings of that consolidation strategy and material handling and we’re just getting started in construction, I guess, is the way I would characterize it.
