India being one of those where we are a leader in natural gas gen sets. We have a factory there and a business there. In India that’s been doing quite well. We continue to see demand in the Middle East for our products, which are – there is quite a bit of, I think around higher energy prices, I think the Middle East has continued to move forward in terms of their economies, and that’s reflected in our order rates from that part of the world. And so those – I think there are some specific areas, Australia is another area of market that we continue to see nice improvements in our growth rates. So, I think that kind of just some of the dynamics to give you a little flavor of that. I think the business outside the U.S. for us is highly concentrated in Europe, though.
We don’t have as much exposure to Africa. We have some limited exposure to Asia. South America is a nice market for us and a growing market as well, but it’s relatively small relative to the size of Europe. But I think that’s probably the most color unless, York, I am missing anything there?
York Ragen: I think the IDCs have been hanging in domestic.
Aaron Jagdfeld: Our industrial distributors have been doing quite well here in the U.S. and gaining market share there.
Operator: And your next question comes from the line of Keith Housum with North Coast Research. Your line is now open. Keith, your line is now open. Moving on, next question is from Chip Moore with ROTH MKM. Your line is now open.
Chip Moore: Hey everybody. Thanks for taking the questions. Can you hear me?
Kris Rosemann: Yes.
Chip Moore: Fantastic. I wanted to follow-up on some of the green shoots you talked about for consults and close rates as it relates to the current housing market. Just – I guess I am curious if you would expect to see any impacts from a slowdown there in the higher rate environment, or just maybe a situation where people might decide to stay in their houses longer and pull the trigger? Just curious what you are seeing there.
Aaron Jagdfeld: Yes. Thanks Jeff. Yes, the – obviously, there is puts and takes, I think with that, with housing. First of all, it’s really less than 20% of our sales going to new housing. So, I would say with housing starts at those slow and as they slow, not as big of an impact on us. Most of what we do is to – is retrofitting existing housing with products. And then that gets to kind of the question of, for most people, how long do you stay in your house. And if housing turnover slows down because of the higher rate environment, does that mean that people are going to start to look at projects in their house and think about that, or is there some dampening of the enthusiasm around that even because of the higher cost of money for borrowing against your house or just the concerns, overall economic concerns that consumers might have.
Those things have to play out yet. I would say that again, kind of consistent with our previous remarks on this, is that when outages happen, the one thing we do know is that homeowners generally have a list in their head of like things they want to do to their house. And a generator is probably on that list somewhere for most people, depending on how many outages they have had and how long outages have lasted. But when they get an outage, that category of product tends to move up on their list. And outages tend to trump some of the other macro things that you might see around housing or the consumer as the economy cycles. And we have seen this time and time again in our history in the business is if we get the outages, people will reprioritize their spending.
Maybe they won’t hold off on that kitchen remodel or putting in a pool or doing a bath remodel or taken a family vacation even in some cases, they reallocate their consumer dollars, they are spending to other categories that they deem more important. And so as outages – and again, this is the underpinning all of this is you have to have a belief that power outages are going to be on the rise, and they are going to last longer. They are going to be happening more frequently and they are going to last longer. The data bears that out, everything else that we have been talking about here would indicate that, that is going to be the case for the next several decades, just as the grid goes through a transition. And as that happens, I think that even though we may run into some economic cycles here that could put pressure on the consumer.
I think as long as the outages happen, we feel pretty good about where we are going to be.
Operator: And we have no further questions at this time. I will now turn the call back over to Kris Rosemann.
Kris Rosemann: We want to thank everyone for joining us this morning. We look forward to discussing our fourth quarter and full year 2023 earnings results with you in mid-February. Thank you again and goodbye.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
