Patrick Goris: And Nigel, couple of comments on refrigeration. Think of Q1 organic sales being down mid to high single digits, Q2 down mid-single digits and then basically returning to mid-single-digit growth in the second half of the year. And that is all related to what Dave, just mentioned earlier about container. Four quarters that we assume to be down, two more to go. Same with commercial refrigeration, and we see continued strong performance in particularly North America Truck and Trailer. And so that is how we’ve dialed in the plan for refrigeration, which we expect to be flattish from a full year perspective on an organic sales basis.
Nigel Coe: Thank you, very much.
Operator: And our next question coming from the line of Josh Pokrzywinski with Morgan Stanley. Your line is open.
Joshua Pokrzywinski: Hi. Good morning guys. Dave has covered a lot of ground on the productivity — I’m sorry, on the demand front. Maybe just shifting over to productivity. I know you don’t really talk about like Carrier 700 or whatever kind of iteration we’re on these days as much now since the last Analyst Day and you kind of have this price/cost productivity formula. Just wondering how versus that $100 million net a year, you would think about it for this year? And kind of the totality of the pipeline in front of you? Do you feel like you’ve gotten through a lot of the opportunities since the initial separation? What’s still left to go?
David Gitlin: We have a huge ways to go, Josh. We — what happened is we came out of the gate, we had good productivity than we saw over the last year, a lot of the supply chain headwinds that were fairly unexpected that really hurt a lot of industries. So now as we’re starting to come out of that, I think we see significant opportunity. What Patrick said effectively was $300 million of productivity plus 200 of price/cost positive for a total of five between those two. When we look at it, we think logistics is a big opportunity for us this year. We’re starting to see rates come back to more traditional levels for containers coming from Shanghai to L.A. We see global logistics. We paid a lot in high logistics costs, in spot price for electronics, our spot price for electronics are significantly down month-over-month, quarter-over-quarter.
We expect that to continue. We think there’s a great opportunity with our Tier 1 suppliers. We had been very aggressive on Carrier Alliance, and then we really had to slow some of that activity because our focus became getting parts to feed the lines in the shops. And now we got to get back into our focus on having partners that we can rely on for the long term that share our desire for joint growth. So we look at it. We see opportunities for productivity in the factories. Continued takeout of G&A. You’ll recall that we used to be 9.5% as a percent of sales. We got down to 7% at the end of last year. More transfers of work to low-cost places like Europe going to Eastern Europe. And all things direct material, which is a big percentage of our direct buy.
So we got away from calling a Carrier 700. We said 2% to 3% productivity forever. And we think we’re in early phases of what are significant opportunities for cost takeout.
Patrick Goris: And Josh, our guidance is very much aligned with what we shared at Investor Day, $300 million of gross productivity, offset by about $200 million of investments in merit and a net $100 million falling through the bottom line. That’s in our guidance.
Joshua Pokrzywinski: Got it. That’s helpful. I appreciate that net number, Patrick. And then just shifting gears over to some of the stimulus out there. How do you guys think about some of the opportunities for IRA, whether residential or commercial this year?
