And at the same time, we’re factoring potential delays in orders because of things like I talked about, the U.S. defense procurement. But make no mistake. I’m seeing steady improvements in our business in terms of we’re managing it. We have a very happy with €“ in terms of the execution of our programs and the level of contingency in those programs that we have, execute them well. As you know, there was a factor in Q1. And I mentioned that it has not happened in . I don’t see that happening again. Not with the rigor that we put into it. So look, I expect €“ when you talk about when we recover back to low double digits. Look, it’s going to be €“ we’re on that road Fadi. And I think that you’re going to see that over the next couple of years to get into it.
Fadi Chamoun: Great. Thank you.
Operator: Thank you very much. We’ll get to our next question on the line is from Tim James with TD Securities. Go ahead.
Tim James: Thanks. Good afternoon. Thank you for taking my questions. My first question, I guess, I just want to return actually to that last topic, Marc, I’m just wondering if you could comment on or characterize any particular pinch points in the supply chain that are more problematic than others? Any sort of particular parts or aspects of the supply chain that are a little bit more problematic. And I’ll open it up to either your civil business or your defense business.
Marc Parent: Well, I think I’d start off by saying it hasn’t really been a factor on our Civil business and mainly because we’ve done a good job over the years to design a product that is highly repeatable, highly standard. And our teams in global sourcing, for example, in operations have done a very, very good job forecasting and being able to obtain those parts. So, I think that’s been the case. In defense, look, I think the issue is, I would say characterize any single part. It’s basically longer lead times on many parts. That’s what really is the factor here. Obviously, we’ve had issues like everybody has on the electronic parts, those kind of things. But today, it’s really longer lead times, repeating myself on inventory many parts and what that cut does, it’s not only the fact that you missed the part itself is it’s the fact that in the meantime, you either can’t progress on that contract or you’re having to do workarounds and work around is inherently inefficient you have maybe people being idle or installations they’re having to work around them.
They therefore causing delays. So all those things cause inefficiencies that weighs down on our margins. And it has, I would say, a double effect because traditionally, we are able to execute contracts and get ahead of ourselves to execute the programs faster and therefore, generate efficiencies. And we’re in the contrary situation right now. And the same effect with labor, you don’t necessarily have the software engineers that you need because of some of the factors I talked about the time to get them the time to get them basically certified with the right clearances they need. Now that gets that is getting better because obviously, demand in the high-tech market for software engineers, specific has cooled. So we are a bit of a benefit of that.
We’re seeing that. But it’s going to take a few quarters for that to abate €“ to the extent that we get back to the margins that we have targeted in our long-term defense business.
