Aaron Saak: Sure, I will. Hey, thanks, Max, and thanks for the question, Matt. So, I think that’s where we’re very encouraged. As we go through each market and the ones you’ve listed obviously are the key end markets for us. We’ll start with gaming as an example, we continue to see strength in that market, again, tending to a run rate of high single-digits in terms of demand and a backlog that’s growing and that’s not just for our core components hardware, but also for the services and the aftermarket connectivity solutions we have in that market that helps us in terms of share of wallet. You take that to retail; we’re continuing to see the underlying trend of automation. I’d say that’s the, you know, one of the primary threads of that market.
That’s where I come from in my background and it’s extensible here into the CPI business. So again, both on our components, as well as into more of our systems solutions. And as I mentioned in my prepared remarks, Matt, we see Paypod doubling this year and that’s our self-checkout solution again on the trends of automation. So again, I’d start to think about that as mid to high-single-digit growth. And then I think broadly, you’ve got to look at what was done here two years plus ago with Cummins-Allison and expanding into more of a system solution, but that recurring service that comes along. So, we have a high attachment rate on that service that’s accretive margin above fleet average and that’s been very resilient and we continue particularly with deploying our operational excellence programs in CBS into that business to drive margin expansion.
And I can tell you from looking at those businesses over the last few weeks, my background years ago in running large sales service businesses there’s more margin expansion and more growth inside of that business as well. So very positive.
Matt Summerville: Great. Thank you, guys.
Max Mitchell: Thanks, Matt.
Rich Maue: Thanks, Matt.
Operator: Thank you. Our next question comes from the line of Damian Karas with UBS. Please proceed with your questions.
Max Mitchell: Good morning, Damian.
Damian Karas: Hey, good morning, everyone and Aaron, congrats on your new role. Great to have you on the call.
Aaron Saak: Hey, thanks, Damian. I really appreciate that. Thank you.
Damian Karas: Yes, absolutely and I appreciate all your guys’ details — through details on the guidance and everything. I just wanted to ask you first about Aerospace and Electronics. You mentioned you see yourselves outgrowing the market, but the 10% guidance does seem, kind of, low compared to, I think, more mid-teens to 20% outlook we’ve seen from some of the other large aerospace suppliers. So, it would be helpful if you could maybe just perhaps reconcile that and elaborate a little bit on how we should be thinking about this $50 million of unmet demand?
Max Mitchell: Yes, Damian, this is Max. I’ll take a stab and then let’s see Rich or Jason want to add in as well. Very similar comments to currency. Listen, right now, while the supply chain is stable, we are still — we have extended lead times, and we’re still reacting to the odd unpredictable outage here or there. So, we just don’t see that significant improvement at all. It’s — outside of Crane, if I think of CPI and some of the electronic components we have there, it’s — lead times are starting to come in, you’re starting to see that gradual slow improvement. It’s very difficult to predict when A&E will supply chain will see significant improvement. We don’t believe that’s going to happen in the first six months of this year.
As a matter of fact, look, as we triangulate on this, I think we’re continuing to be careful, prudent and we’re going to absolutely hit these numbers and have the opportunity to deliver upside if supply chain improves. I think what you’re going to — my hypothesis is, as we head into Q2 and Q3, you’re going to hear people describe — they were caught by surprise, because China reopening with COVID and then going right into the Chinese New Year. We’re not seeing this in terms of any impact yet or inventory because those longer lead times are being delivered. I think you’re going to see a little bit of a lag spike there, while I think long-term, China reopening is incredibly positive for the back half of the year that we’re baking in all of the economic uncertainty that we continue to see if the Fed makes the wrong move.
So, while the demand is going to continue to be very, very strong, we’re being very careful and prudent on the supply chain. We are not seeing significant improvement in A&E yet. We anticipate it to gradually improve in the second half, but that’s where our assumptions are. If you believe that supply chain is going to improve significantly faster, I would — you can model that and make those assumptions, because if we get the supply, we’ll be able to deliver. It’s really that simple. We don’t see any significant capacity constraints if we get it all tomorrow, turning it around immediately will be impossible. But we certainly are not significantly capacity constrained. This is how I think about it in the guidance. I don’t know if you have anything.
Rich Maue: The only thing I would add is that there’s nothing unique about our supply chain constraints too, just to make sure that, that’s very clear. It’s not like we’re seeing something very unique to Crane. This is our guidance assumptions based on when we think the supply chain will or will not improve. I think it’s important.
Max Mitchell: And I think we’re very close to the details. And again, I would hope that investors give us credit for the credibility and transparency that we have historically provided and continued to.
Damian Karas: Understood. Appreciate your thoughts there. And then I wanted to ask you about corporate expense. I mean it just seems a bit higher than what you had previously communicated. So, what’s happening there? And what’s your plan to drive that down?
