Walter Liptak: I wanted to ask the 2023 price/cost dynamics, understanding that things look like they’re going to be normalizing. Are you — in your guidance, is it largely volume, or is there — or could you give us an idea of how much you’re expecting from price in 2023? Is there some carryover price from 2022?
Jeff Taylor: And I would say in our guidance, it’s really like we’ve talked about the business a couple of years ago. The overall guidance is kind of mid single digits overall, that comprises price and volume. And so we would expect a couple of points of price, a couple of points of volume, some growth from new products and market share in there. But we also have built in there an offset for continued foreign exchange headwinds in 2023, and so that helps bring the average down overall.
Walter Liptak: And you also called out a couple of things, I think, Gregg, during some of your prepared remarks, that sounded like growth investments going into industrial pumps and into Fueling systems. And is this sort of — I wonder if you could just give us an idea of sort of the market opportunities, is this something that you expect to see revenue growth from this year and how — is this a new initiative, or is this something that the company tends to do?
Gregg Sengstack: So I’ll take the second one first. So embedded in our Fueling business, I guess we could describe it more as an energy business is that we have a product line that we’ve been developing over the years that is used to — these are products that are used to monitor the condition of transformers in electric utility space as well as high and now medium voltage circuit breakers as well as backup system for telco, like think about cell tower backups and railroad crossing backup power and also for server farms. And the — with regards to where you land on demand for liquid fuels going forward, there’s no question — or in my mind that we’re going to see an increased demand for electricity. And I think it’s already been pretty well documented in the United States about some of the challenges with the electrical grid, they just built the grid, the creekiness, I’ll call it, of the grid and the need to monitor assets more discretely across that grid.
And so given our experience in critical asset monitoring that we developed in the fueling space, we’ve used that capability and we put it to focusing on more broadly monitoring critical assets in an area that we expect to see growth. And so we’re going to continue to invest there. And again, it’s a small part of that segment, but we think it’s growing 25% a year and we are looking forward to continued growth. One of the challenges we’ve been actually hampered by over the last couple of years, more in that small product line than in the other areas is the availability of chips that should improve more in ’23, and we should see less constraint on top line activity because of that. In industrial pumps Walter, what we’re seeing again is that we’ve been growing the Pioneer brand product line, that business was actually started by its founders 25 years ago with sales of zero and now that’s a business that is well north of $100 million.
It’s a more diverse customer base than in the past where you may recall back in the middle last decade, we had some volatility there with the really impacted the Pioneer brand. And we have a much more diversified base, both in end markets and also in geographies with Pioneer and other similarly situated industrial pumps. And given our extended presence in areas of the world where mineral extraction is a strong part of the economies, sub-Saharan Africa, South America, United States, is we’re seeing that we’re building a brand, we’re building a position for people where recognizing Franklin the residential and ag, submersible motor producer with a company over 30 years ago. Now we’ve extended that quite a bit into mining and municipal and industrial applications.
And so as we continue to develop our brand and people begin to get greater awareness of us in those channels, we expect to do well. So we’re going to continue to look at pump line acquisitions, product line developments and product developments in that space as well.
