Patrick Goris: Nigel, the ballpark number you have there, it’s in the ballpark, $500 million, $600 million of carryover in pricing. Most of that — in total pricing, most of that is carryover. We have some new price increases that we’ve announced as well. We’ve dialed of course, some of that in, and we’re looking at additional price increases as well.
David Gitlin: I’d add, Nigel, it’s fluid. We came into the year. And over the last few weeks, we’ve announced new price increases that we feel that were appropriate. Resi announced a 6% price increase. For North America, light commercial and North American commercial, we’re looking at up to 8% recent price increase. We’re going to raise prices in both North American Truck Trailer, European Truck Trailer is probably in the low to mid-single-digit range. So — we watch inflation trends. We watch our elasticity curves, but we do think it’s appropriate that we are going to need continued price increases certainly in the first half of this year.
Nigel Coe: And normally, if you announce a price increase of 6%, you capture maybe 2% when we need net of normal promotions and I made some discounts and volume discounts. That hasn’t been the case in the last couple of years. But I’m just curious what sort of capture rate do you expect going forward? But maybe if you could just also break down as well how you see the Refrigeration segment in 2023? There’s a lot of moving parts there. Just curious with the ease comps you’ve seen in the back half of the year in both commercial and transport, how you see the full year playing out within that segment?
David Gitlin: Yes. Let me start on pricing realization, a little bit of color on refrigeration, then Patrick will add to the phasing of the year. Look, our realization rate on pricing was very high last year, as you know. We came into the year thinking that we’d get $1 billion of price. And when all was said and done last year, the number was closer to $1.6 billion. So we’ve seen very high realization rates in pricing. And we would expect that to continue as we go into ’23. On Refrigeration, I’ll tell you at a high level, you’re looking at a bit of a mix bag. North American Truck Trailer has been very strong. We saw order rates in Q4 over 100%, and that’s still without opening the order book effectively for the second half of this year, and they were up 40% for the full year last year.
European Truck Trailer has — we’ve calibrated that business, we think, well, they performed extremely well last year. I think the thing that we’re tracking in the refrigeration business is the container business, which we know was light. Patrick mentioned you’re usually looking at about a four quarter cycle. We’re coming off two of down sales. We expect another couple. So we expect to see that start to improve as we get in the second half of this year. And commercial refrigeration was a bit light, but there will be pent-up demand for commercial refrigeration. Some of the supermarket chains in Europe have been squeezing their budgets. They can’t do that forever. So, we do think that as we go through the year, we start to expect to see commercial refrigeration come back.
And I’ll tell you, I know that both us and our key peer who we have a huge amount of respect for are both claiming that we’ve gained a lot of share in Truck Trailer. So mathematically, that can’t — we both can’t be right. But I will tell you that when we look at its customer by customer, we look at our order rates, I could tell you with huge confidence that we’ve gained chair in Truck Trailer in Europe and in the United States and globally. So, we feel very good about that business, and we feel good about the snapback as we get into the second half as we start to see the recovery in container and our commercial refrigeration business.
