Scott Wine: I think some markets will get back to reasonable levels of inventory, but I don’t like — I mean we want to be — our goal, our intent is to make sure as we manage and protect our own cash flow that we do the same for our dealers, and so that takes discipline to do, and that’s the discipline that we are going to have as we go through this. The end of the year was a little bit tricky for us, because it was so much very good work done to complete this in the significant fleet inventories we had literally all over the world, where we just were missing components and we needed to finish those get them build and tested out to dealers. And the team there has done a nice job with that, but it happens so much at the very end of the quarter, we ended up with more inventory in some places that has retail orders, the customers are going to pick it up right away, we just didn’t get it there in time for that to happen.
So, I think the end of the year inventories aren’t really telling great stories, especially in North American market, where that was significant, but overall, we feel like there is just a tremendous opportunity for us to keep our factories running and produce for retails customers at this point, and possibly at the end of the year, start to get dealer inventories back, when I say, “Back up,” it means it’s up to acceptable levels, not up to historical levels.
Timothy Thein: All righty, thank you.
Operator: Our next question comes from Michael Feniger from Bank of America. Please go ahead.
Michael Feniger: Hey, Scott. Thanks for taking my questions. I believe you phrased that 2022 was the year priced, 2023 is the year cost, just wanted to understand this a little bit more. If you look at 2022, can you quantify some of the costs embedding the model attributed to premium freight transportation, just buckets that like cyclically won’t — that cost won’t be elevated in 2023?
Scott Wine: Well, you hit a big one, we have already seen it started to come down, being transportation cost, you know, just cargo boxes, all of that stuff. We’ve seen that start to give way. And way our contracts are we don’t always see it right away. But nevertheless, that is – that’s one. And overall, we are just not seeing the spike in prices. Again, inflation is there. We are dealing with it. I think team’s proven our ability to manage that. Semiconductors have also come down. So, that’s it. That are much reasonable or I guess acceptable level for us. But overall, prices are going to be higher for us in 2023. But when I talk about it, we are looking at the entire business portfolio. And saying what costs have be incurred through the pandemic.
And then in response to pandemic where we had to ramp up so quickly to do our customer orders. And how do we get back to running the business very efficiently. And that’s the work. When I talk — we talk about cost, it’s getting after that efficiency in all aspects of the business that we might have lost a little bit of during last couple of years.
Michael Feniger: Understood. And we just went through the order book comment, but you did also made a comment earlier I think to Jamie Cook about 2024 could be a more difficult year. Many economists actually in 2024 could — they could be seeing the global economy expanding. So, I just wanted to narrow in on that a little bit. Why do you think 2024 can just become a more challenging year as you said?
