And then the work that we have, new expanded facility in the Pacific Northwest around automation and some of that build out of the capabilities will play well for us, we believe as we conclude this fiscal year, but really into the set up for Fiscal 25 and beyond.
Chris Dankert: Understood. Thanks so much for the color there. Really appreciate it.
Dave Wells: Mighty Chris too. The January comp is a difficult one. We were about 20% prior year January. So as you think about the context of that low-single-digit year-to-date or January projection.
Chris Dankert: Got it. I appreciate that for sure. Well, thank you. I’ll jump back in line here.
Operator: Your next question comes from the line of Ken Newman from KeyBanc. Your line is open.
Ken Newman: Hey, good morning, guys.
Neil Schrimsher: Good morning.
Ken Newman: I want to jump on the back of that last question from Chris here on January. I’m just curious, any color on just how the cadence of monthly sales comps from last year kind of progresses through the quarter, 20% plus here in January. Do we see a pretty substantial step down in that monthly ads comp starting in February, or is that a March driven number?
Dave Wells: Yeah. I’d say directionally, I think it would go roughly February, 15% type, mid-teens type increase last year and March still double digit in that side. So, but that would be kind of the step down of that cadence.
Ken Newman: And then into the fourth quarter is where you really start to see the comps become even more easy?
Dave Wells: Yes, right. That makes sense.
Ken Newman: So my next question here is, I guess I’m trying to make sense of the commentary on technology versus the guide for 3Q, right, because if I remember correctly, Neil, you kind of mentioned sales impact [ph] are up mid-teens sequentially. It sounds like the orders, they are stabilizing here or were stabilizing in 2Q, but you still expect that to be a headwind here. Maybe help me square that comment a little bit and then maybe also some color if you could, just on where in technology are you seeing that biggest improvement? Is it in the semiconductor side? Is it data center? Is it consumer electronics? Any help there would be great.
Neil Schrimsher: Sure. So we think about it, right? We’ve talked about the magnitude of the headwind, total business, the 100 basis points or in the engineered solution segment, which is where a predominant amount of the activity would be the 400 basis points in that side. Just as we look ahead at the cycle of some of those projects or activity and release, we think that trend can continue – could continue in the current quarter, this third quarter as we go along. If we look back at past cycles, there typically are four to maybe five quarters in that side. So we take that as a positive. So we think there’s a positive influence, some relief coming. Obviously, the comparisons will get a little easier in that as well to help in the second half.
As I look at it today, probably more start to be fourth quarter impact and then as we go into 2025. And so places that we are playing, one would be to support wafer fab equipment and some of those producers and providers. Obviously, we can be a little bit ahead of that activity. But I think most are projecting that re-acceleration to occur late in this calendar year or into 2025. And so we could get a little earlier there. And then we’ve been active from data warehouse and cooling systems and material movement in some of those projects, we would expect that to continue. But I think that the pace of some of that implementation has been a little uneven and we probably see more of that coming either potentially in our fourth quarter of this fiscal year or as we get into our 2025.
Dave Wells: As we said, Ken, we were encouraged though in the quarter regarding the sequential increases that we saw both in order rates and shipments on the automation side of the business. Just a very difficult comparison that masked some of that from the prior year. So on a two-year stack basis to upload double digits organically in that business in the most recent quarter.
Ken Newman: Right. No, that makes sense. Maybe one more from me. Obviously, the balance sheet is essentially unlevered and it sounds like you guys are still open for business as it relates to M&A here, just maybe any color on the pipeline and what’s your take on potentially tapping the balance sheet for the share repurchases even more if those deals get delayed?
Neil Schrimsher: So we are active in from an M&A standpoint to our priorities that we’re consistent on in the Engineered Solutions. So across fluid power and flow control and automation, much like we did in the last quarter the nice bolt-on to the service center. So we’ll continue to look and be active there as well. I would expect more M&A activity this fiscal year. And as we go into 2025 on the side we were active in share repurchase. We would expect that to continue this fiscal year, the dividend increase that we just announced. And then some of the things that we will make while they’re not outsized in the amount, but we have more growth investments and that can support our organic that we think will be favorable as we go into 2025 and beyond.
And so we’ll look to continue. So we’re knowledgeable, we’re aware of where we’re at. We’ll continue to work the growth opportunities that we have, acquisitions and organic growth into that side. And then return money to the shareholders via the share repurchase and dividend.
Ken Newman: Excellent. Thanks for the color.
Operator: Your next question comes from the line of David Manthey from Baird. Your line is open.
David Manthey: Yes. Thanks for taking a few more questions here. What are MSS revenues today and of those sales, what percentage is delivered via vending technology?
Neil Schrimsher: We’ve not disclosed discreetly Dave, the kind of the relative contribution of MSS. There is a component of that business, that does – and does the vetting machine piece of the equation. Certainly, a profitable business for us, one that’s accretive from the mix standpoint and a nice complement to the position you got the one-stop shopping, we provide across the other industrial solutions so we can be all to customers. So – but nonetheless, piece of the business we like just do not talk separately and have not disclosed what the revenue contribution is there.
