Matt Summerville: Got it. And then just maybe to flip over to kind of the negative things impacting the business, you talk about destocking, you talk about projects push-outs. Gregg, you’ve done this for a number of decades. So, drawing on your experience, how long do you think kind of the downcycle can persist as it pertains to the destocking sort of phenomenon as well as what you’re seeing on the project side in both Water and Fueling? Thank you.
Gregg Sengstack: Yeah, Matt, you think with my experience, I get smarter over time. And we — I would say I was — I thought we were kind of through this and through Q2. But I think with the interest rates and just with the ability of lead times, including our own and our customers, that we’re back to the pre-COVID normal and people who are looking at — and we are seasonal in Northern Hemisphere, and so, I think that customers are saying, look, I don’t need to take the stock, I don’t need to carry the stock, I’ll let the manufacturers carry it. And then there are — even in our case, our own distribution being more reliant on us as a supplier because we supply about one-third of the product, I’m saying, look and rather have it carried upstream.
So, there is a — so I think that we’re kind of getting through that, maybe through the end of the year. Certainly, the pipe, which is the large portion of the Distribution business, is this plastic resin and also steel pipe, that availability was acutely tight through the pandemic and then it came on in a flood. And so that’s I think maybe exacerbated the situation probably into year-end. But here again, I think that the discipline of having higher interest rates will help us coming into ’24 relative to our competitors in Distribution. Relative to the push-outs, I think here again, we continue to stay in close contact with major marketers in the Fueling business, and they said, we have these build programs, and they normally hit their build programs, and it just seemingly things came — went to the — pushed to the right.
I talked to some contracting companies in late July or I think was really August, and they’ve talked about how they still were kind of having trouble getting help to build out projects. So, I think that’s just everything kind of slowed down a little bit. I think that we’ll see the Fueling business kind of steadily get better in ’24. It will easier comp in the back half, certainly. The other thing is, with our large pumping systems, we have a larger exposure to the rental customers, the URIs, Sunbelts and others in the world, and back in — when ’14 to ’15, when oil prices collapsed, we took it on the chin on that business. We saw that slowdown again, I think it was ’19 or ’20. But we’ve done a lot to diversify the customer base. We’ve got a growing recognition from the pioneer brands.
So, while you expect that the rental fleet customers are now kind of catching up and maybe that’s part of this slow, given the underlying strength in the industrial economy, generally in United States and these kinds of positive comments at WEFTEC and other conferences, we’re feeling that we can carry through that. It may be a little slow there again in the next couple of quarters as we kind of get adjusted to the new norm, but then we’re feeling we are well positioned there as — in that space. And then, finally, in the groundwater space, we came off of a really dry couple of years. And if you remember, in California, we had record droughts, and then we got record rain and lots of water, which overall is a good thing, but certainly in the short term for us, it impacts demand.
