Operator: Our next question comes from the line of Chris Moore with CJS Securities. Please proceed with your question.
Chris Moore: Maybe just a quick follow-up. The $3 million incremental expense on health care. Some of that is in ’23 and some in ’24? Or where does that get placed?
Anthony Harris: Annual expense is in 2023, and we ramped a little bit, but we were fully — mostly fully staffed for the year. So, that’s the approximate run rate for ’24 as well.
Chris Moore: And maybe just one more on the health care side. So do you expect the ultimate penetration here to match the penetration of existing business, for example, 75% of the health care to be in California? Is it geography bias? Is there some other bias by type of employment? Just trying to kind of get your thoughts there.
Gary Kramer: As we are mastering our craft for benefits, we’ve had better success selling it into our installed base. So I think we said 160 clients that have enrolled through October of those 160, 20% of those are new business. So that’s new to BBSI. We wouldn’t have brought those clients on to call that 30%, we would not have brought those clients on if we didn’t have benefits. So that’s allowing us to pick up additional business that we wouldn’t have received. But as we’re learning our craft, it’s a little bit easier to sell it to your friends, right, in our clients. They know us well. They know the products we deliver. They trust us. It’s a little bit of an easier sell to sell it into your installed base than to sell it to a new.
But what we want to get to in the future is after we sell through the — our installed base continue to sell into new clients. But you can kind of see how this will this will ramp over time, right? We doubled the book on 7/1. We’ll probably double it again on 1/1 as far as our portfolio of clients that buy the benefits, and then we’ll see where it goes from there.
Chris Moore: And just kind of big picture. Just trying to get a sense as to how much visibility you have in fiscal ’24 as of November 1. Do you know much today that you didn’t know three to four months ago? Just trying to get a better sense as to how you’re seeing early ’24.
Gary Kramer: We feel — looking at our pipeline that we have, we’ve got two pipelines to think. We’ve got a pipeline of benefits opportunities. And we feel good with that loan if we close that at our historical benefits closing rate that we’re going to have accretive year for benefits in ’24. So it’s going to be — we’re going to make more than the $3 million we’re going to spend, right? We’re not going to give a number until we get into ’24, but we’re going to make more than the $3 million we’re going to spend on it. And then if you look at the pipeline for our traditional non-benefits prospects. That’s the largest pipeline we’ve ever had at the end of Q3. So, if we do what we do, and we’re good at doing that, right? Over the last two years, we’ve really been executing on our controllable, right, of adding clients and adding WSEs. If we keep doing what we’re doing with the pipeline we have, we feel very optimistic about ’24.
So if you say, all right, we’ve got all these good things going on the controllable side and then even if, say, our client hiring is flat. It’s going to be easy for us to have a better gross billings year in ’24 over ’23.
Operator: Our next question comes from the line of Vincent Colicchio with Barrington Research. Please proceed with your question.
Vincent Colicchio: Gary, site construction is a weak sector. If I remember correctly, that’s been weak for some time. I’m curious, are you seeing that deteriorate?
