Garik Shmois: Thanks. Just wondering if you could speak to the cadence of project delays as opposed to outright cancelations. I think last quarter, you were seeing delays, you weren’t seeing cancellations. I was wondering, if maybe the proportion there has changed a bit over the last 90 days?
Vic Grizzle: Yes. We continue to track this, Garik. I would say that for the most part, these continue to be delays. You’ll hear one or two projects, especially in the tech sector, right. We’ll hear some, it sounds like a cancellation even if it’s closed and delayed language, it feels like a cancellation. Again, that’s isolated to a couple of projects in the tech sector, but for the most part, most of these projects continue to be in delayed status. Now, I think the important part to consider that against the context of what doesn’t get started or what hasn’t gotten started in terms of projects based on supply chain issues or labor issues that is creating a bit of a void in the pipeline. I think we’re also trying to keep an eye on that as that kind of works its way through the system.
Garik Shmois: Thank you for that. I want to follow-up on inventories. You talked about destocking in WAVE. Are you seeing any destocking in any other channels?
Vic Grizzle: We saw €“ again, it’s all in the same channel, right? Just to remind everybody, our grid products that are made by our WAVE joint venture, and our tile products are sold as a package through the same channel. But in the other channels like the home centers, if you will, and the like, we’ve not seen the same destocking. It’s kind of the normal pattern of buildup in inventory and a drawdown in inventory. We’ve seen that similar behavior, but it’s not unique behavior. I think what we’ve seen in the grid side of the business €“ the steel products in particular, we’ve had unprecedented levels of steel inflation in back-to-back years that drove inventory levels as everybody was buying ahead of these price increases, reminder, we had nine price increases in 2021.
So, there was lots of steel companies or steel products raising prices as rapidly as they could and that drove inventory levels higher than most other products from what we can see in our channels. So, again, that was that €“ it was that unprecedented level of inflation and supply chain disruptions that drove an extraordinary condition around this destocking. It’s something that we were really following and chasing down all year. Most of that seems to be behind us. In talking with our distributors, and as steel prices start to stabilize here in the first quarter, have stabilized, I would say, in the first quarter, we’re €“ we believe the majority and the extent of that destocking is behind us.
Garik Shmois: Understand. Thank you very much.
Vic Grizzle: Thank you.
Operator: Thank you. Our next question comes from Phil Ng with Jefferies. You may proceed.
Phil Ng: Hi, guys. Vic, I was a little confused on your comments €“ I was a little confused on your comments on your outlook on volumes. I thought you were saying 1Q was tracking kind of with fourth quarter €“ I mean, sorry, the first half of 2023 is going to be tracking similar to fourth quarter levels, which was down about 10%, I think. But you’re also saying maybe the back half could be weaker or you have less visibility. So, kind of help us think through the volume progression through the year? I just want to make sure we understand the moving pieces.
