Thomas Ondrof: Hi Toni this is John. I think that’s probably a good assessment. We are the big step change continues to be the self upconversion activity that’s increased over the norm and continues to run at a pace of probably 10% to 15%, higher than the industry norm has been over the last 10 to 15 years. So that’d be that would be the big step change. The other areas are very, kind of typical. There are areas where we compete against the other big three, other excellent companies based on what they have, what kind of rebid activity exists in their contract base this year, we had a higher level of rebid activity based on the analyzation of certain contracts and their expiration date. So it just it cycles. I don’t think there’s any real change in the competitive dynamic between the big three or the regionals.
But I think additional cost pressures probably do have an impact on the smaller players. Our supply chain is much more robust. And we’re much more able to respond to those kinds of cost pressures than the smaller competitors are so but the big tailwind for us is really in the self-op conversion mode. And that looks like it’s going to continue.
Toni Kaplan: Yes. Understood. Wanted to ask on the 2025 margin target of 7% to 7.5%. It sounded like from the prepared remarks, and this is consistent with prior quarters, it sounds like you’re still confident and being able to achieve that. And you had put out that target before we really started to see inflation really escalate. I know there were probably some supply chain issues at the time. But I think and it sounds like supply chain is moderating now. So I just wanted to understand, like, just given that inflation has become a bigger factor. Are there some offsets, like what are the offsets needed to get to that level? Is it the negotiations that you mentioned, Tom in the prepared remarks, or are there other factors that we should be thinking about? Thanks.
Thomas Ondrof: Sure, I do, certainly inflation has been a headwind to that target from a year ago. And all things being equal, probably be towards the lower end of the range, given the inflation impact than the higher end of the range, but that said, there are to your point, some offsets supply chain will continue to mitigate. We’re confident of that and settle in, over the course of the next three years, as we move towards that period, talked about with fiscal ’25. And then we also continue to, the new business wins, and the ability to leverage those wins, both through our supply chain negotiations, as well as our above unit overhead costs are going to be a tailwind to the margin. So we’re growing and we’re actually probably a year ahead of pace, in terms of trying to get to that 4.5%, 5%.
net new business growth number, we talked about it on analyst day. John and I was very pleasantly surprised with the way the teams gelled and delivered that results a little bit quicker than anticipated. So that again benefits us as we build margin through scale going forward over the next three years. So I think inflation is a headwind. But I think the some of the offsets are the pace of growth, and supply chain .
Operator: Thank you. One moment for next question. And our next question coming from the line of Shlomo Rosenbaum with Stifel. Your line is open.
