David Rush: Yes, Adam, that’s a good question. In 2023 multi-family will be a tailwind for our margin. It only creates a little bit of a tailwind though, because it’s still only about 15% of our overall business. R&R traditionally has been a higher margin product as well and we expect a favorable result from R&R on our margin maintenance. It will help us hold on to margin. Again, the combination of those two products is a smaller percentage of our overall business and generally our margin profile follows single-family, but they will be helpful in us maintaining as we normalize in other areas.
Adam Baumgarten: Okay, got it. And then just on digital solutions, you guys said you are on track to deliver $1 billion in revenue by 2026, can you maybe give us an update on where you ended in 2022?
David Rush: Yes, Adam I’d love to talk about our digital milestone. So 2022 is a year of development. We really weren’t trying to monetize the concept in 2022, and actually even through 2023 it would only be a marginal revenue opportunity. We’re playing end game here with the digital solution. What we’re focused on in 2023 is the full development of the platform and we believe by the end of the year, we will have achieved all the development milestones. We’re piloting it in 40 with 40 customers across four markets. We’re going to learn a lot from that. We’re going to go back, we’re going to refigure, we’re going to redevelop, we’re going to change what we need to. Because at the end of the day, the full recognition of value in this solution is through pull through sales by making us easier to do business with.
We believe fully in that concept still. We believe we are light years ahead of any of our competition as it relates to where we stand in the development process. And we still believe in our goal of $1 billion of incremental sales by 2026, primarily through pull through business. Anything you want to add there, Peter?
Peter Jackson: You nailed it. Perfect.
Adam Baumgarten: Okay, great. Thanks, best of luck.
David Rush: Thank you.
Operator: We will take our next question from Steven Ramsey with Thompson Group. Your line is open.
Steven Ramsey: Hi, good morning. Maybe to start with, on CapEx, the last couple of years, it seems like there, the delay of delivery has caused some push out on CapEx spend, supply chain and labor is a little bit better now. Do you feel like you can deliver on all the CapEx this year are more likely to deliver than prior years? And is there any delay embedded in this current guidance?
David Rush: Yeah, no thanks, Steven, you’re right. We struggled to get what we’ve wanted. It’s gotten a little better. There has not been nearly the relief in things like rolling stock that there have been in certain other categories. So that’s still a source of, I would say strain. It’s getting better. So my sense is this year’s CapEx will be more achievable than last year. There’s certainly a lot we want to do, and we’re still optimistic that that will continue to free up as the year progresses.
Steven Ramsey: Okay, helpful. And then another question somewhat related to CapEx and labor as you plan for a downturn, but also want to be prepared for taking advantage of longer-term strength in housing, how do you think about holding on to labor for the long-term and building out capacity even if it’s not fully soaked up in the next 12 or so months?
