So if we look at the same stuff that you do and I’ve always had a tremendous amount of respect for the PMI and its ability to sort of point directionally to what industrial production is doing. I think if you look at industrial production, that’s still growing, but it’s — but that growth has moderated. But we still feel pretty good about what we’re doing with focusing on this customer set and really being able to spend more time and grab wallet share at a faster clip. And I think a lot of things that we’re doing is making us feel pretty good about a market that, as you pointed out, there’s a lot of signals that are suggesting it should be softer than it feels to us right now.
Dan Florness: So I have the opportunity throughout the year with 240 district managers. And throughout the year, I’m having conversations with 4, 5 or 6 DMs every week. And our conversation with each one going through learning a little bit more about them, learning about their business, where they think their business is going and just hearing about what they’re saying. And we were stuff on our chart sleeps. If you feel like — if you’re nervous, that anxiety manifests itself and how you think about stuff. I think a couple of things are going on. And again, put that in the category, this is from talking to a lot of people and this isn’t from studying a lot of numbers. I think what’s helping manufacturing is a really healthy backlog that existed through much of 2022.
So let’s just say you’re a manufacturer and your backlog is 100 units and whatever that revenue is because, say, it’s 100 units. And because of supply chain constraints, because of just demand in the marketplace from the last several years, maybe some deferred maintenance, whatever it might be, that backlog goes from 100 to 150. And then we get into the latter third of 2022. And let’s say that backlog goes from 150 to 120. It’s still a really good backlog. And the question is, is the PMI reflecting the 120? Or is it reflecting the concern, the angst that comes with, well, the backlog went from 150 to 120? And is the PMI giving us a head fake or is the PMI really telling us what’s going to happen? We honestly don’t know. But to Holden’s point, the activity we’re seeing feels okay.
But we are — we, like everybody else, are a bit nervous about where things are going. The last 3 months and for the next 6 months, I’ll be pushing our leadership pretty hard on what we’re doing as far as adding headcount and being really thoughtful about it. I feel good about — set aside the economy for a second, I feel good about the fact that we have 350-plus new Onsites that will be given us juice as we go into 2023, and we didn’t have that kind of number coming into 2022 or 2021. And so there’s some positives there. But as far as the underlying economy, we’re not really sure if the PMI is right or wrong, but we’re playing it, assuming it’s right.
Tommy Moll: Very helpful. As a follow-up, I wanted to pivot to pricing dynamics in gross margin. I guess this is a 2-parter. Holding on gross margin, is there anything quantitative or qualitative you’d offer just to bridge us from 4Q to 1Q? And then more broadly, I forget which one of you referenced the broader discounting in the non-fastener, non-safety SKUs. Is this an early sign of a trend that may bleed over into some of your more core product categories? Or any context you could offer on that discounting dynamic would be helpful as well?
