Operator: Thank you, David. We have our next question, comes from Kathryn Thompson from Thompson Research Group. Kathryn, your line is now open.
Kathryn Thompson: Hi, thank you for taking my questions today. Just €“ the first one is just a cleanup from your guidance question or your guidance from today, and I appreciate all the color you’ve given. But what is embedded in terms of volume assumptions going for Q4? And then as you look into either the balance of calendar €˜23 or for the next fiscal year, what are your high-level expectations of that balanced contribution price versus volume?
Mark Witkowski: Yes, Kathryn, it’s Mark. I’ll take that one. In terms of the guide for the fourth quarter, what we’ve got embedded in there, I would say, is kind of volume down kind of mid-to-high single digits. And again, primarily due to the really difficult comps we had last year. If you go back to Q4 of €˜21, volume was in the €“ up in the teens, and we had really, I’d say, unusually strong weather season for €“ in particular in our northern climate. So we’re capping against a tough quarter there. I think as you look forward, we do plan to issue guidance as part of our Q4 release, but recognize there is a lot of interest in what’s going on in the end markets in volume. I’d say, as we mentioned in the prepared remarks, we are anticipating some near-term softness in the resi market, which is just about 20% of our mix.
Say it’s too early to tell really the extent of that softness. But given the slowdown in single-family starts, we believe that likely correlates into some softness in the lot developments. On the non-resi side, we have seen strong construction activity and that should continue to benefit us and certainly is a lagging end market relative to resi. So I do expect non-residential be a positive contributor, but that’s an area we are watching pretty closely. And then from a municipal standpoint, that’s been very steady and we would expect that to continue. So as you kind of take those together, I think that sets us up again pretty strong foundation as we go into 2023 from a volume standpoint. And I’d say, beyond the market, we do expect to continue to grow in excess of the market by 200 to 300 basis points.
And that’s really a result of the €“ our organic growth initiatives that we continue to deliver on. And then the acquisitions for another 100 to 400 basis points similar to our historical results that we’ve seen there.
Kathryn Thompson: That’s helpful. The second question really is a bigger picture and more on material substitution. And Texas is allowing drainage with plastic and PBC instead of just concrete and there is a bit a widespread shortage of cement, which is obviously a critical component for concrete. So this paves the way for greater use of your products versus concrete, how does this benefit Core & Main? And how do you €“ are you €“ is this just a unique event to Texas or is there a push for change for other states? Really, what are the opportunities for that line of business? And as you think broadly about material substitution and how that benefits Core & Main? Thank you.
