Andy Wittmann: Okay, that makes sense. So then I guess just on the implicit EBITDA margins in the 2024 guidance, I wanted to dig in that. I mean they’re basically implied down a couple hundred basis points and heard the commentary on labor, heard you guys say that you’re expecting that challenge to continue here into 2024. But I’m just wondering, is there more to it that we should be thinking about? Is there — is the competition competing differently as the growth opportunities broadly speaking are maybe not as robust? And is that a factor that goes into the margins or maybe Bruce, what are the other considerations we should be thinking about that’s implicit in that margin rate for 2024?
Bruce Young: Yes, I think the biggest thing is the competitive environment that we’re in. We talked about this on our last call where there’s not a lot of discipline. We’re competing against family offices for the most part that don’t have the confidence in themselves to get rates up ahead of inflation. And so — and we know, and because we’ve always had to do this as the largest players, kind of drive that and get out in front of that. And so we’re finding creative ways to get out in front of that. But there is some concern about how that will play out through the year.
Andy Wittmann: Got it. Okay, That’s helpful perspective. And then I guess maybe my last question here is just on the commercial side, just wondering if you wanted to give some commentary about what you’re seeing there. Obviously this has been the toughest spot. That’s not new, but are there green shoots to be seen here or are you seeing delays at all on some of the projects that you are kind of eyeing down or even cancellations? Certainly to the peak rates in the case that you made in your prepared remarks seems like it’s directionally positive. I’m just wondering what you’re seeing on the ground in terms of the movement of these commercial, including the light commercial jobs through the bid to build process.
Bruce Young: Yes, so things haven’t changed a lot. From the last quarter, the larger projects are going. There’s still some concern about the light commercial. That activity, we don’t see — it doesn’t create a backlog like what we get on the larger projects where we know about them, six, eight months, a year in advance. The lighter commercial ones, sometimes it’s just two or three months. So we don’t have as much visibility, but we do believe as interest rates lighten up and demand becomes greater that we’ll see that increase.
Andy Wittmann: Okay. Thank you for the context. I appreciate it. Have a good evening.
Bruce Young: Thanks, Andy.
Iain Humphries: Thanks, Andy.
Operator: Thank you. Our next question comes from the line of Luke McFadden with William Blair. Please proceed with your question.
Luke McFadden: Hey, Bruce and Iain. Thanks so much for taking our questions tonight. Maybe just one here. I know you kind of mentioned just in terms of — on the commercial side, the ABI index, it’s kind of been in negative territory for a while now. I think the hope is that we start to see that improve somewhat as we move through 2024. But just curious kind of how you guys think about your non-residential construction business and I think the hope is that it improves but maybe if that’s from your perspective more front-end weighted versus back-end weighted, just any takes there would be helpful. Thanks so much.
Bruce Young: Yes, thanks, Luke. I think the ABI is where our concern with light commercial is at, where it was doing quite well until a few months ago, or at least even, and now it’s gone back. We do have some concerns that that will affect light commercial. The larger projects, they seem to be going, but we expect that that will improve over the next few months and then we’ll see light commercial pick up in the second half of the year.
Andy Wittmann: Great. And Just one more on our end here. Residential was again, a bright spot in the quarter. In November, we saw new single-family homes jump up again. Can you discuss any of the nuances around what you saw in the residential market during the fourth quarter and in particular, any geographies that were particularly strong. I know the mountain region was strong for you last quarter, but anything specific there?
Bruce Young: Yes, it’s the same story. The home builders have done a really good job of making homes affordable and the supply demand has been in our favor for that. And we see that picking up into this year. And we expect residential could be even much better as the year plays out as interest rates come back down.
Andy Wittmann: Great, thanks so much.
Operator: Thank you. Our next question comes from the line of Stanley Elliott with Stifel. Please proceed with your question.
Unidentified Analyst: Hey guys, this is Andrew on for Stanley. Thank you for taking my question. I was wondering if you could talk about M&A a little bit more. It seems like the appetite is certainly there, given the balance sheet. But what is the landscape looking like as we enter the new year, and where are the opportunities?
