Daniel McGahn: Yes, I think that’s probably the question of the day. Eric, you nailed it. I think we have both paths open to us. I think obviously, if there’s a rapid rebound, and when we get there much faster, meaning that that rebound comes or really almost there with the backlog today, right? So incrementally growing, the new energy part of the business is happening, if we can continue at the current rate, we’ve been bumping those orders, we’re basically there. We have to deliver on it right, and we have to deliver it on time and on cost. And we’ve been able to successfully do that throughout the business. And we’ve improved the Neeltran pretty significantly quarter-on-quarter with our operating efficiency capability. So, I think, when I look at this, I see the backlog.
And I see the comments that John made about where the operating leverage comes from. And I think we already have the backlog to get there. I think time will be the, tell. And I think certainly additional win would make it easier might make it faster. But it you know, today as we sit here, I feel better than I ever have, that we’re now at the point where we’re talking about potentially achieving these milestones, not in the next year, or two or three, but in the next quarters or a year or so. So we have a much brighter future right in front of us right now.
Eric Stine: Okay, thank you.
Operator: The next question is from Colin Rusch with Oppenheimer. Please go ahead.
Colin Rusch: Thanks so much, guys. Can you talk a little bit about the raw material impact on your margins? And what you’re seeing in terms of the cadence of some of those lower raw materials starting to flow through your, through your COGS line?
Daniel McGahn: Yes, I think Colin, that the challenge for the business has is the rate at which we take orders and the rate of weeks we deliver them. So, for some products, we’re out, we’re booking orders as early as six months, maybe nine months, for many of the products, we’re out a year plus at this point. And that compared to where the business was say a couple years ago, certainly has extended by at least a quarter or more for many of the product lines. And that’s a bit of the kind of constipation of the backlog. If I use that term so please don’t write that, but I don’t have a better language, is that we’re kind of stuck with this backlog. We’re trying to get it out. And the good news is, as we’ve priced in new orders, a new backlog as John said that those are as we model them going forward, that certainly margins that we – have hoped for and expected.
For material prices, specifically in John’s commentary, we see a stabilization of those costs, which means now as we’ve priced in new orders, it’s just the time it takes from when we receive that order to when we deliver on it and we’re kind of in that cadence now in the coming quarters.
Colin Rusch: Okay and – that’s helpful, I may ask some clarifying questions later. But next, I’m just curious about the bid activity. Obviously, there’s a lot that’s happened from regulatory perspective around capacity building, domestically. And so, I’d love to get a better sense of, how much sales activity there is and what your conversion rate is on what you’ve seen so far, I guess called over the last six to 12 months?
