Bill George: So you look at Tech whip from 13% to 21% of our revenue. really, we’re doing a lot of chip and some other stuff, but that is overwhelmingly data centers. we’re seeing data centers not just in our modular business, right? They’re very big in Texas and our electrical business. They’re very big in like sort of the mid-Atlantic, Virginia. And we’re turning — we’re not — we’re disappointing people, right? We’re favoring people who’ve given us — been partners with us for a long time. But we just — the demand for data centers is going to force the build to be pushed out over time. And that’s one of the great things about modular. Modular is if you’re a big data hyperscale, especially data center provider, you really — people say, well, which modality of building data centers is going to work.
We’re going to win. And the answer is, is this all of the above world right now. They want to do it modular. They want to do it stick built. They want to do third party. They want to do repurposing. They want to do up adding reconfiguring buildings to support more every way that they can do it is how they’re doing it. It reminds me of the way we — people say, how do you hire people? And the answer is, we hire people every possible way we can think of they’re building data centers every possible way they can think of. And for the foreseeable future, if you can help them meet those needs and especially if you can do a really good job, demand, there just seems to be no end to that demand. The demand was big even before artificial intelligence, right, artificial intelligence isn’t data center demand is incremental data center.
Adam Thalhimer: Right. And then you said three new modular facilities last year. That was higher than I didn’t realize that. I thought it was one. But what would be your thoughts about expanding modular capacity further?
Brian Lane: I mean, you get to see what the demand is and see what kind of commitments we get from our customers. We’ve got the three up and running now. So I mean, we’ll see how I think it plays out, which customers would want us to do it.
Bill George: Yes. So round numbers, we did about a 400,000 square foot facility in North Carolina and we did a 400,000 and a 200,000 square foot facility here in Houston. And it’s even — those sizes are great, but these are also buildings that are much bigger — have much bigger volume. They’re taller so you can build. You have the option sometimes or building at levels because remember, these are — this is volumetric. You’re building buildings that get stacked on top of each other. So this new space is really, really great for our guys. We had an opportunity when we came into this space to really take the lessons we have learned in deploying robots and robotic arms and the kind of equipment that can make robotic arms more efficient and faster.
And so far, it’s doing — it’s going very, very well. As far as increasing the space, I think we certainly have conversations with existing and new customers about what would get us to do that. I think we’re probably not going to make serious decisions about that before the middle of the year. But the opportunity is for certain, it’s out there right now. But one of the things about comfort is we really want to do a good job for people. And the one thing we never want to do is promise more than we can really deliver at an absolutely industry standard level. And so our number one consideration in taking work is can we do it and do it right, our number — and almost similar — almost the same level of consideration is, is this work that will be good for our workforce.
Is it in with people who will treat them fairly and work with them where there will be good efficiency so that they can be successful. Is the geography onerous for them or good for them. I mean, in construction right now, a huge consideration is retaining your workforce and you retain your workforce by considering the things that are going to be important to your workforce. So that’s actually a very important consideration right now with our best operators.
Adam Thalhimer: Okay. Super helpful. Last one, backlog expectations. I’m just curious if could backlog continue to build in Q1? Or are you basically I would imagine you’re kind of full for the 2024 construction season.
Brian Lane: Yes, we’re in really good shape on backlog this year for sure. You can still grow it because projects are getting little longer. But back to what Bill just said, if the works, good with our good customers, we’re going to see what we can do to fill it in, but there’s still plenty of stuff to look at, Adam, no shortage of opportunities.
Adam Thalhimer: Great update. Thanks, Guys.
Operator: An thank you. [Operator Instructions] And our next question comes from Josh Chan from UBS. Your line is now open.
Josh Chan: Hi, good morning, Brian, Bill, and Julie. Thanks for taking my questions. Maybe could we contextualize your margin strength in the quarter for a quick minute here. I appreciate the guidance that you gave into next year. So what are some of the factors that drove kind of the margins this quarter? And can those factors pretty much continue into 2024.
