James Umpleby III: Certainly, we have a diverse group of suppliers and a diverse product line and we did see some improvement in the quarter, but there are still some areas of strength. And it’s very different product by product. And even though you’ll see a number of suppliers in better shape, all it takes is one component to prevent you from shipping an engine or machine. And part of it’s just the nature of the beast, I think, as to what’s happening in various industries. And if we look at our large engines, it’s more of a struggle, frankly, than it is with some of our construction machines at the moment. And these things ebb and flow over time. But that’s where we are today. We still see some semiconductor availability challenges.
I know with the higher end chips, that’s improved significantly in the industry based on industry reports, but for the semiconductors that we use, it continues to be a challenge. And so, in the fourth quarter, we certainly did still experience inefficiencies associated with supply chain challenges. And that had an impact on us because we’re still doing things like workarounds. And it’s not anywhere near as smooth as it needs to be.
Andrew Bonfield: I think if you look out for the rest of the year, what we do expect is, obviously, we start to lap those in the second half of the year, those inefficiencies. So we should either see a moderation or actually a reversal of some of that supply chain inefficiency we saw in the second half of the year.
Operator: Your next question comes from the line of Kristen Owen with Oppenheimer.
Kristen Owen: I wanted to follow up on the services growth. You reported now $22 billion, on track to meet that $28 billion target by 2026? Can you just talk to us about some of the growth drivers in that business and maybe provide us with an update on customer value agreement take rates?
James Umpleby III: Again, we are encouraged, as I mentioned, about our progress and services. And we mentioned, when we threw that target out that it wouldn’t be a straight line, it wouldn’t be linear. And we knew we had to make investments to make it happen. And we are continuing to invest in a whole variety of things. We’ve gotten more connected assets now, 1.4 million, up from 1.2 million last year. We’re investing significantly in our ecommerce capabilities. That’s one more arguably, I’d argue, we were a bit behind. But we made great progress and very proud of what the team is doing there. And those sales are increasing. To answer your question on customer value agreements, over 60% of new equipment in 2022 was delivered with a CVA.
And that’s really important because it creates that customer touch point and it gives us the ability to demonstrate that value that we can provide. And also, we’re investing heavily in AI. We have what are called prioritized service events. So what that does is allows us to give dealers a lead on aftermarket service and repair in advance. And it provides value to our dealers, of course, but it also provides value to our customers because it allows them to avoid unplanned downtime. So, that’s really positive as well. Also, we’re working on parts availability. We need to have the right parts at the right place at the right time. And that’s one of the benefits of having connected assets and also utilizing AI with those connected assets to ensure that we anticipate where those parts will be needed.
And that’s a key enabler as well.
Ryan Fiedler: Operator, we have time for one more question.
