Russell Becker: I mean what do you mean, David, when you say an indication of how strong they are. I mean, data center is really strong, semiconductor remains very strong. Health care remains very strong. Depending upon how you look at the infrastructure spending and the infrastructure build, those dollars are really just starting to flow into the system. You’re seeing some things, federal aid going into rural broadband access and things like that, that are having a positive impact on the business. So I think in general, those end markets are really strong. We don’t have a lot of exposure to retail hospitality. We don’t do a lot of like developer-led type project opportunities that rising interest rates are going to have a negative effect on whether our developers can move forward with some of their project-related work.
So that’s a plus for us. We have very little exposure to residential, including multifamily housing, which is a positive for us. So in general, I think the focus that we’ve had on the right end markets has made a difference for us.
Operator: We’ll take our next question from Julian Mitchell of Barclays.
Kiran Patel-O’Connor: This is Kiran Patel-O’Connor on for Julian Mitchell. I just wanted to ask on the Chubb synergies. Can you talk about how these are progressing? Maybe how much you realized in 2022 and what your expectations are for synergies realized in 2023?
Kevin Krumm: Yes. Kiran, this is Kevin. From a Chubb synergy standpoint, we talked about it in November. So to step back, our restructuring charge in 2022 was approximately $30 million. As I said on the call, we anticipate $55 million to $60 million in restructuring in 2023. The actions that we took associated with the $30 million charge in 2022 did bear fruit in 2022 as well. We saw approximately $5 million to $10 million of savings come through. We anticipate the remainder of that to come through in 2023. With respect to the 2023 actions and initiatives, we expect most of those charges to occur later in the year. And with that, the savings similar to 2022 will start to come in, in the back half of 2023.
Kiran Patel-O’Connor: Got it. And then I just had one follow-up on the backlog. I saw you guys noted that the backlog was up 9% in 2022. Do you expect to burn through a material portion of the backlog at all? Or do you expect orders to remain steady with sales growth through the year?
Russell Becker: Yes. So typically, what we see is we’ll see — we’ll burn through backlog in the fourth quarter as we move towards the end of the year, and then we will build backlog over the course of the first half of the next year. So — when you look at our backlog on a year-on-year basis, it’s up. But if you look at it sequentially from the end of Q3 through the end of the year, it’s slightly down, which is 100% normal for us. And when we first started talking about backlog, we reminded everybody that, that’s actually not the greatest metric to measure us by. And because with the processes that we have from a project selection and customer selection, we actually wouldn’t mind seeing our backlog shrink a little bit because it would show — it would demonstrate to us that we’re being more disciplined with the work that we pursue.
And the quality of the backlog is going to have better margins in it as we work our way through 2023. So our backlog is in a really good shape, and the funnel that we have with our proposals that we see coming through the system remains very robust.
