It is certainly depressed, just an absent spot market. And we’re navigating through that. We do have some cost reviews going on to better position us with costs that are appropriate. I think we’ve already talked a little bit about the technology areas of advancement, trying to enable our people to be more efficient. And all of that is going to help us as we move forward. But I want to say this; we’re focused on those 2025 targets. We want to grow this. And we’re going to position ourselves to be able to grow. And this environment that we’re in right now is not going to last forever. And we feel like we’re in a good position as we come out of it.
Jason Seidl: Thanks, Judy and team, appreciate the time, as always.
Judy McReynolds: Thank you.
Operator: Our next question comes from Jordan Alliger with Goldman Sachs. Please proceed.
Jordan Alliger: Hi. Yes, just on the cost side for the Asset-Based, so maybe can you talk to some of the lines that you may be able to lever as we — in this demand slowdown, are you doing things on headcount, additional stuff on purchase transport, just trying to get a sense for the ability to maintain your OR over the course of the year, and, at least for the start of the year, what could be a softer demand situation? Thanks.
David Cobb: Yes, this is David. I’ll start off here, and if others have something to add. But I mentioned a couple things in the opening comments just about our progression in the quarter, where we made some ground on outside resource utilization. And that comes with, as we mentioned, having that good employee base, and we’re able to do more of that internally, which we like do. And so, we see opportunity there as we move forward, as we get our team more productive. We did a lot of hiring in 2022, and so we expect that team to improve in their productivity as we move forward. So, that’s one area. I think the other area is the repairs and maintenance is one of those items that I called out, where we had some elevated costs. Some of that is due to the equipment replacement cycle and timing of that.
But some of that is just the inflationary cost in the repairs and service side of it that we were seeing. But we could make some progress on that as we have a good CapEx plan in place, and as we bring on some of this — some of that equipment didn’t get delivered until late in the year, and into 2023. And so, this is our 2022 orders I’m talking about. So, that has opportunity there as well. But those are probably some of the, as we move forward, areas where we could see improvement.
Jordan Alliger: And on the headcount front, I mean do you expect it to stay relatively static for now or what’s your thoughts on that?
David Cobb: Well, I think that’s obviously going to be dictated by our business levels to a certain extent. But we’re — look, I would say, just moving from December to — we’ve been hiring through the year of 2022, but moving from December to January, roughly kind of flattish right now. And then we’re certainly going to monitor that as business levels prove some.
Judy McReynolds: Well, the other thing, David, is, naturally, we have retirements.
David Cobb: Right.
