So we — that’s where I called out free cash flow. We had good free cash flow conversion in this last quarter. I think that we’ll have better at some point in time over the next 6 to 9 months. We’ve got initiatives to really go back and look at where we took some actions on inventory stocking levels because we were worried about strong inflationary pressure as well as lead times and freight costs. And there’s a lot of money that we’ve tied up in working capital that we think we might be able to release over the next 6 to 9 months. That’s one part of it. That also is it related to Gexpro services specifically had an impact. It’s kind of the old game of telephone or the kind of where one person tells you and the story kind of gets amplified and it gets to the next person or maybe it’s kind of fishing stories, if you will.
But the challenge has been that our customers have re-laid with a lot of anxiety production levels that then got narrated back to and through purchasing. And now that there’s less of a concern from their end, we’re getting to the heart of exactly what their production levels are and it’s allowing us to be more exacting in our — because there’s less anxiety on there and that we’re going to not have adequate inventory to support their OEM needs. And specifically, the risk associated with a bunch of our customers of us paying out for — out of stock on a small piece good that would slow down a major manufacturing line. There’s just not that level of flexibility on our side and so we understand why they popped some of their forecasting to us.
Ken Newman: And Bryan, clarify my question here. I’m more concerned about your — of the demand that you’re seeing, are customers pulling back on orders because it used to take, call it, 3 months for product widget and now it takes back to normal 3 weeks. And so they don’t have to order out as far. Are you seeing that today?
Bryan King: Yes, that’s been something that we’ve talked about over the last 6 months and I think I even alluded to it on the last call was whether or not we were going to see some destocking at our customer level that would have some influence on our own order levels that we were seeing. And I think that some of that’s going, is absolutely taking place. If it was happening, we were seeing it happen some in the last quarter because we’re not seeing right now an acceleration in it. But I had said this and I think certainly, I said it to some of the investors but I think I said it in the last quarter’s earnings call that I been calling out for 3 to 6 months for our team to be anticipating that we were going to see some destocking at the customer level because they are concerns about lead times and availability were so peaked a year ago that they stocked deeper themselves.
And so we’re saying on the public side, we’re seeing some of our customers look like they’re working inventory levels down on working capital. And we think some of that’s been playing out as a kind of a bit of a dampener on our own performance over the last 3 months or maybe even longer. But we aren’t seeing a steepening of that yet this quarter because we didn’t see any more of that happening, we don’t think during the month of July. Any more is more than what we saw in the second quarter. But yes, we have had a lot of internal conversations about how much of that was taking place and so I think it’s a very fair call out on your part. Ron is any more color on that? You may have some more specific areas where we’re seeing it or where we might have seen it.
Ron Knutson: Yes. The only piece I would add to that, Bryan, is on the Lawson side, Ken, we’re a short-cycle business. So it’s a little difficult for our customers to build up. They really don’t have to have a buildup of stock. And so we just — I mean, we turned quickly with our customers. So probably a less impact of that on the Lawson side of the business. Generally, for Gexpro Services, long-term agreements that we have with customers on the Gexpro Services side. And so I agree with Bryan, there’s certainly not any further pullback than probably what we just see as part of the normal process and Gexpro Services is so well connected to the production cycle that we probably saw a little bit of a bump probably last year. But again, it’s not a huge movement, I would call it, dramatically impacting our results from quarter-to-quarter.
Bryan King: And Ron, I would even just kind of thinking about what I said and reflecting on it and hearing you say it sometimes so helpful. Gexpro Services has got those long-term contracts and we are required to hold that inventory. So if anything, that inventory has been on our balance sheet. And now what’s happening is because they’re pulling it as they need it. And so they aren’t carrying any real buffer on their end, we’re carrying the buffer on our end. And that’s where I’m talking about us being able to work our own inventory levels down that we’ve been carrying for our customers as their anxiousness has kind of buffered a little bit. So that should actually translate back into cash for us. On test equity, there are some shelf-life elements there on some of the products that they order from us.
And so we have not seen it specifically in our conversations on test equity be something that we’ve been concerned about. I continue to be concerned about it. It’s a question I’m asking consistently but the answer I’ve gotten back on the test side has been that we are — have not been seeing that. So those are those two. And then the short cycle side of Lawson, I think Ron answered very well. So I wouldn’t offer any more color there.
Operator: We appear to have no further questions in the queue. I’m now going to hand back over to Bryan for any closing remarks.
