Noah Kaye: Appreciate that. And then, Mike, you had put out some good data points around the improving labor situation. I want to ask, is that going on industry-wide? Are industry-wide labor constraints at all easing? Is there sort of a freeing up of capacity to serve because certainly, that has been a boon to pricing in the space. And I just want to make sure that as we think about the setup for industrial services and field services, in particular, into next year, that those sort of favorable constraints to your pricing and market share aren’t abating?
Eric Dugas: Yes. No, I’d love to say it’s all us. It’s all us. We did it ourselves, but I think that trending why people are definitely, definitely coming down. People are still scarce asset, makes them — we’re replacing kind of temporary labor and things like that, which has helped our margins in Industrial Services. And so I think that voluntary turnover coming down, we’re really proud of that. We’ve made a lot of investments in that. I think the industry is coming down a little bit. But make no mistake, we’re using our people to an offset for temporary labor and that’s being able to drive margin improvement. Eric, you want to add anything to that?
Eric Gerstenberg: Yes, I definitely think, Noah, across the board, we’re ahead of our peers in reducing our level of turnover, strengthening our employee base, the quality of our employees, how we’ve been hiring, how we’ve been attracting, retaining them. It’s — the team has just done a nice job across the business in reducing turnover. A number of — there are so many initiatives that we’ve been deploying across our employee base to reduce those. And I think we’re ahead. Our efforts are ahead of what — how the industry, I think, is performing based on our efforts. And it shows up of how we’ve been able to better service our customers and not have as much backlog in a number of different areas. And we’ve heard that from our customers. So that’s good.
Noah Kaye: And I guess just to close the circle, that should give you runway for continued margin expansion in those lines of business, right? I mean, whatever the macro does right now is going to affect that. But even if it’s sort of a low-growth industrial production environment, you’ve got some internal levers here that are going to continue to carry over?
Eric Gerstenberg: Yes. I’d fight an example of that in our — in some of our Field Services businesses, we had some subcontracting that we were doing to help us with some projects. We really had a concerted effort to eliminate that subcontract and reduce it with our own employees, and that comes with margin improvement and better service to our customers. So, yes.
Eric Dugas: And better safety and a lot of other things, too.
Operator: Our final question is from Michael Hoffman with Stifel.
Michael Hoffman: Tetra Tech got an $800 million award to do some PFAS work. Is there a — and that’s all engineering related. So is there a possibility you’ve got a role in that? And then on the PFAS issue, we need the drinking water final role in December, but we still need the circle ruling in February as well to get those two things behind us before we really break the dam open here on the PFAS side.
Eric Gerstenberg: Fair to say, Michael, first commenting on the Tetra Tech. There was multiple awards that went out and to really change out the AFFF to another non-PFAS related material. We — certainly, our team was well ahead of that announcement, aligning ourselves with those awards to be able to work with them directly to provide solutions for the proper disposal of that AFFF. So a nice opportunity for us to continue to improve prove out. And also on the circle, yes, we need that to really happen for us, as mentioned earlier, to get that definition completed here, hopefully, with what’s going on in Washington and some of the turbulence that doesn’t get delayed again. But we really need those standards out there in the marketplace.
Michael Hoffman: Okay. And then Mike Battles, on the blending, when you say 25 million gallons, that’s taking the direct from 8%, which would be something like $12 million, so doubling the blending or the direct number, when you say 25…
Eric Dugas: It’s a different — it’s kind of a different answer. When I talk about Group III, we’re going to use some of that in our own production next year, but ultimately, we see Group III being sold as base oil to third parties. When we talk about that growth to a much higher number. That’s — the 2024 item is more of a cost save for us instead of buying third-party Group III oil to supplement our base oil to make to make blended lubricants. We’re going to use their own stuff, which is a cost saver in probably the first half of 2024. And as we ramp that up in the back half, I think there’s going to be some to sell.
Eric Gerstenberg: Yes, Michael, just to add on that, when you think about that 25 million gallon number of Group III that we’ll be making and looking to achieve as the goal that Michael articulated, that’s selling material that we’re currently selling at a Group II rate and converting it to a group III. So 25 million gallons less of the goal of Group II sales but selling that as a Group III product. That’s how you should think of that.
Michael Hoffman: Got it. All right. So I conflated two different topics then. What’s the possible — how much higher can the percent of direct blending go? If it’s 8% today, can it be 20%?
Eric Dugas: This has been a challenge for us. Mike, this has been a challenge for us for a number of years. We continue to work with some large fleets to drive more blended gallons to direct and through the closed-loop model. I hate to say that we’re close on some, but we always continue to work through that and drive that type of growth.
Eric Gerstenberg: Our performance over the last couple of months has been improving as we’ve shown in consecutive quarters, our direct blended oil sales has improved quarter-over-quarter. And there, the team has really done a nice job of continuing to ramp that up and the success seems better as we go through each month of the year.
Michael Hoffman: Okay. And then on Kimball, you all had given us how to layer in the capital spending. So we did $45 million in ’22. Originally, we going to do $90 million this year, so we’re $85 million, but you’re pulling forward the opening date. So should we us $55 million for next year?
