And like I said, the wildcard really in my mind is what happens in the cyclical element of seasonality related to fasteners.
Ryan Merkel: Yes, makes sense. Super helpful. And then on OpEx, Holden, you mentioned you’re going to tighten that up a bit and then you’re also going to invest in IT for the long term which I agree with. I guess is there any metrics you can provide? Is there a goal for FTE growth in the second half? And I guess, ultimately, what I’m getting at is, can you adjust SG&A fast enough where you can hold operating margins flat year-over-year in the second half? Or is that maybe optimistic?
Holden Lewis: It will depend how aggressive we are. The part of the operating margin is going to be a reflection of the gross margin. So again, I will perhaps comp out a little bit in your question about SG&A and a part of the answer to your question is going to rest in what happens to the cyclical element of mix, right? Step that aside and just focus on the SG&A, I think that the — we need to reduce the cost in our SG&A relative to Q2 by $2 million, $3 million. And we need to do that through tighter control of headcount, through tighter control of those expenses. And I feel comfortable that we’ll be able to do that. I think the organization is already sort of responding to the messages and responding to the natural signal of their growth slowing down. So I do believe that we will have better leverage opportunities in the back half. Again, with the wildcard being what happens to the underlying demand environment and what impact does that have on fastener-related mix?
Operator: Our next question is coming from the line of Josh Pokrzywinski with Morgan Stanley.
Josh Pokrzywinski: Also, kudos to the operator for nailing the authentic pronunciation there. We don’t get [indiscernible].
Holden Lewis: I was going to ask. That was pretty close.
Josh Pokrzywinski: Yes, that was old country right there. I like that. The — just maybe a higher level question for both of you. Obviously, we’ve seen a huge wave of inflation supply chain tightness. Now going back the other direction at least with this inflation, I guess what would you identify Dan, as the biggest change you saw as a function of that? And the biggest things that are changing now as those reverse. Could be customer-facing, could be kind of margin profiles with the business, deliberately a broad question but just thinking of how [it is going to be priced]?
Dan Florness: Well, I mean the biggest change that we saw directly in our business from supply chain element was the fact that we had to add a heck of a lot of inventory in those expensive inventory in 2021 and 2022; container costs were sky high. We were doing a lot of things; we were not going to let people down. And fortunately, we have the balance sheet to do that. And we have a shareholder base that appreciates, we’re judicious with their capital but they were supportive of the move. And they were confident that when the need for that extra layer of inventory subsided, we figure out a way to harvested out the balance sheet and move forward. That’s probably the biggest thing to how it manifests itself, obviously, on our balance sheet and in our cash flow statement.
We talked about that earlier. If I think about more broadly, we are seeing changes. And it’s one of the reasons I touched on a bit the 2 elements of our business, the plan spend which I believe we’ve created over time an incredible ability to serve that market. And the unplanned where we’re good at it. We’re not great at it. And partly because we haven’t built the system to support it whether it’s technology or supply chain. And we’ve been busy building that the last several years and I talked about some of those pieces. And we’ve seen success on what we’ve built but it’s still a relatively small piece of business but we are seeing that trend. If a buyer is working remote 2 or 3 days a week, or covering a bunch of locations, because with technology, you can do a lot of things you couldn’t do in the past and you can do it easily.
