Steve LeClair: Yes. Kathryn, Texas is a good example of where we’re starting to see some of those specifications change. They were a heavy reinforced concrete pipe for their storm drainage need. And one of the areas that you’ve seen is the use of alternative products along those lines, particularly corrugated, high-density polyethylene storm drainage and retention systems that, in many cases, can be easier to install, easier to work with and have some additional benefits and characteristics for the flow of water through there. So what we’re seeing is this has been part of what our team has been working closely with, with a couple of the key suppliers on getting these specifications modified and changed to allow that product in to be able to test it. Texas is a great example on a large scale where we’re seeing entire states relook at some of those specifications and we think it has great opportunity for us, medium-term, short-term and long-term.
Kathryn Thompson: Great. And are there any other states where you would identify where you’re seeing a similar trend?
Steve LeClair: Certainly, as you look at it at a state level, there are a number of bigger states on there that have been heavy RCP users in the south and the southeast. And then as you get into some of the more refined areas, there is still a number of municipalities that on a local level, we continue to drive those specs and introduce them to the product and help to understand how that product can be utilized in some effective ways as a good alternative.
Kathryn Thompson: Okay, great. Thank you very much.
Steve LeClair: Thanks, Kathryn.
Operator: Thank you, Kathryn. We have our next question, comes from Mike Dahl from RBC Capital Markets. Mike, your line is now open.
Mike Dahl: Good morning. Thanks for taking my questions. My first question is just around kind of the inventory management and supply chain. It sounds like there is been a little progress and some improvement in the supply chain, which is allowing you to work down inventories a bit. Could you elaborate on just what products you’ve already seen it in and it sounded like that might broaden out in the fourth quarter in terms of where you can start to strategically normalize your inventory levels? So maybe if you could give some color on, again, which categories seems to be evolving in the right direction and allowing you to take down some of those inventory levels?
Steve LeClair: Yes, Mike, we saw some pretty good progress and availability of products and lead time reduction in many areas across multiple categories, although there are still pockets where lead times are extended out for some of these areas. So certainly, we saw with PVC a normalization of flow and production and lead times getting back to near pre-COVID-type lead times and many of the core products there associated with that the typical diameters of bread-and-butter-type product has really gotten back into more traditional lead times and availability. Prices has remained firm through the end of the quarter on that. So we’re pleased to see that. We’re going to be watching that one closely. The other areas that we get that are real specific to our sector, particularly when we get into valves, hydrants, ductile iron pipe.
Some of these are still dealing with extended lead times, as capacity is still constrained to meet demand. So we’re continuing to see some price increases coming in from those product categories. And then we just have some your regularities and inconsistencies on a couple of different other product categories, where extended lead times have just become the norm. And we see that with a lot of like large diameter-type work, specialty valves, specialty fittings, those things along those lines are still not only in short supply, but very long lead times. So we’ve had to take a real active approach here and be able to manage our inventory where the lead times have gotten more consistent to be able to balance that and optimize our inventory levels to best serve our customers.
And then still where we’re seeing items in short supply, making sure that we’re stocked appropriately getting access to that product.
