David Rush: Yes, so the capacity question is a good one. But we firmly believe in investing in the long-term. So we aren’t changing our priorities as it relates to investments and capacity, specifically around value-added products. And in fact, we’re trying to address kind of labor concerns a little bit through some of these investments. We have fully robotic lines in Georgia and Texas that we’re still working through and trying to make sure and having some success with. And I think we have six to seven more on the books that we’re going to add over the next two to three years. So we’re seeing investments in technology and investments in automations as a way to really address both labor concerns we have today and in the future.
So that will definitely not stop. As it relates to the core business, we’ve been really diligent about protecting our A and B players out in the marketplace and that’s not going to change either because we see that as and what we’re experiencing now is somewhat of a short-term scenario and over the long-term we want to come out of this guns and blazing on the other side with our best people. So that’s kind of how we’re approaching it right now.
Steven Ramsey: Excellent. Thank you.
David Rush: Thanks you.
Operator: And we will take our next question from Jay McCanless with Wedbush. Your line is open in
Jay McCanless: Thanks. Good morning. Congrats Dave.
David Rush: Thank you, Jay.
Jay McCanless: Yes, you bet. So Slide 18, kudos on this new EBITDA presentation, very useful. But when you talk to your single-family builder customers, where do you think they’re falling right now on this, these three ranges, negative 15 to negative 25 seems to be what we hear from a lot of people. But would love to hear what feedback you’ve been getting from your single-family customers on where they think 2023 falls out.
Peter Jackson: Yes, I’ll start on that one and Dave can jump on. So the short answer is, they’re all over the place. There’s a lot of differential depending on what market you’re in, the type of house you’re selling, your exposure to customer versus SPAC. We talked a lot about east to west, how much harder this market has been, how rapid the downturn has been in certain markets. So it really is all across the board with people quite pessimistic and quite optimistic being, I would say equally common. So what we try to do is account for a few of those scenarios playing out, trying to think about what they balance out in our numbers to give you some sense of if we lean one way or lean the other, right? If Powell got leaning one way or leaning the other what might potentially play out. So it’s, as you can imagine, that’s been a tough one for us.
David Rush: Yes, I mean it’s the reason you have three different scenarios there to pick from, right? You saw it as recently as coming out of the year in December, most builders were really pessimistic. Mortgage rates dipped down a couple 20, 40 basis points and all of a sudden the light turned on and everybody started showing up again. So it was really hard to just try to narrow it down to one narrow range and that’s why we gave you the different scenarios. But the good thing is, we do know underlying demand remains strong, evidenced by how quickly people returned to the marketplace once they realized mortgage rates were at a rate that they felt like they could execute on the home purchase that they were after. So it was just additional proof that over the long-term home, underlying home demand is there. We’ve just got to make sure that we balance that affordability against that demand.
