Daniel McGahn: We hope that the pricing initiatives are behind us. We’ve been able to reconcile cost and pricing. We’ve done a really good job, we think to try to support our customers’ needs at the same time. So when we look at the growth as part of it is pricing, part of it is just the absolute value of the projects are greater. Many projects in renewables, many projects in semiconductor and many projects in mining are leveraging not only one product line, but maybe two or three, right? So the average order size for a project is going up as well. So pricing is a piece of it. I wouldn’t expect that to continue. I guess that there’s more inflationary pressure. We’ll have to respond to those things. But we’ve been able to work, I think, very well with our customers to ensure timely delivery and a price that we think still is competitive.
We are a premium-priced product. We do have proprietary content in everything we do, so that should garner that. But the growth going forward, I think is really, Colin, going to be reflective of the pipeline and the ability for us to convert those orders and that the order sizes are getting larger.
Colin Rusch: Fantastic. And then on the supply side, obviously, you’ve gone through some lumpiness in terms of the supply availability and some dislocations. As that normalizes and you guys scale a little bit, can you talk a little bit about your ability to start driving cost out of the products and some incremental cost efficiencies from a manufacturing perspective as well?
Daniel McGahn: Yes. I think those come in — and I’ve said this on previous calls, when you start doing multiples of the same thing, and we’re seeing that in different parts of the business. Obviously, ECS and SPS reflect that because you’re making copies over and over. That as you see that demand, it will allow rise, it will allow us to potentially look at our supply chain and look for cost reduction. I’m very optimistic in winds that as they grow their volume that we’re going to be there for them as a good partner to make sure we’re providing proper pricing. So I think in the near term, most of the inflationary pressures are behind us. I won’t say all, because there’s always that risk. I think a lot of the availability pressures have been reduced. We’re seeing lead times start to shrink, and we’re seeing customers start to push us to be able to deliver faster, which is, I think, a great indicator of the health of the business.
Colin Rusch: Great. And then final one for me is just around maturity and evolution of customer conversations in lieu of the ongoing performance in Chicago with the grid solution. Can you talk a little bit about how many folks you’re talking to, how those conversations are maturing and how to think about the potential for another demonstration project or a follow-on order?
Daniel McGahn: Yes, I don’t want to do another demonstration, and I don’t see the first one as a demonstration at all. It’s an asset that’s in the grid. It’s got full rate recovery. It’s an operational capability that the utility wants and they want to do more of. You’re probably hearing me start to, I’ll say, quiet my rhetoric with REG. For those of you that have been around me for a while, I think you understand what that means. I’m very excited about REG and the feedback we’re getting from customers, particularly in the U.S. We really do have a solution that’s needed right now. So I think as we make more progress, demonstrable progress there, we’ll give more updates, but I don’t have anything else to say today.
Colin Rusch: Great, thanks so much, guys.
Operator: [Operator Instructions] The next question is from Justin Clare with ROTH MKM. Please go ahead.
Justin Clare: Hi, thanks for taking our questions.
Daniel McGahn: Hey, Justin.
Justin Clare: Hey. So I guess, first off, you did mention that order sizes are getting larger here. I was wondering if you could just talk about what’s driving those larger orders. Is this a function of a more comprehensive product portfolio? Are there other factors, are your customers’ project sizes increasing? Maybe you can just give a little color on that.
Daniel McGahn: Yes. I think both are contributing factors. I think the first one is the main driver. We’re now bidding in the projects with a larger scope. We’re now becoming known in the market as being able to deliver all of that as kind of a one-stop shop, and that I think is helping us. But I think also a lot of the work that we’re looking at are larger projects, be it on the renewable side or the industrial side as well. So those are all good indicators we think about the health of the business.
