Steve Downing: Yes, I would say if you look at, yes, we absolutely have the tally of the paying that has been deferred over the last 18 months is one of those areas that you try to forget, but unfortunately you can’t. It’s very real. But if you look at the numbers we are talking about earlier, about 350 basis points of margin degradation. I mean really, if you do that on a €“ on the total revenue, you’ve got your number there. So you’re north of anywhere around $70 million to $80 million in cost increases that we’ve had to endure over the last 18 months. Like we mentioned, we’ve got some already that we got in the Q4area. And then we expect to have net positive increase in pricing this year of 100 basis points. So if you look at what we were expecting, normally, you’d see in a down market or a negative APR market to now be positive pricing.
We think we’ll probably pick up a good $20 million to $30 million on an annual basis this year of those costs and then we’re obviously going to be looking at how do we either get further recoveries into2024 or do we get book of business and awards that will allow €“ at least allow us to offset those and hopefully get back into a deflationary pricing market from a supply base. And so, it is a longer strategy it’s definitely one that we feel comfortable with the numbers. We understand what we need to do to get that margin profile back to 35%, 36%, and we’re off to a good start.
Ryan Brinkman: Okay. Very helpful. Thank you.
Steve Downing: Thank you.
Operator: Thank you. One moment please for our next question. Our next question will come from Mark Delaney of Goldman Sachs. Your line is open.
Mark Delaney: Yes. Thanks. Good morning and thank you very much for taking the questions. First one is on the mix of products this year and have OEM take rate plans for higher-end products like FDM changed at all for 2023 in light of the current macroeconomic situation?
Steve Downing: No, as of right now, we haven’t seen a single change. In fact, still a lot of pressure from OEMs to try to get the type of components and at the take rates they want. The market is still constrained. Obviously, it’s not as bad or as severe as it was mid last year. But there is definitely a strong demand right now for higher-end features and content.
Mark Delaney: That’s helpful. Thanks. And my second question was on the overall revenue guidance 2023 I believe as of last quarter, the company was anticipating 15% to 20% revenue growth for 2023 and now you’re guiding for about 15%. So I am hoping to better understand what’s changed in the assumptions for revenue growth for this year?
Steve Downing: Yes. The primary one was two things. Number one is, the light vehicle production for2023 has come down a little bit. And we would tell you that we’re a little bit pessimistic on the second half of the year of those numbers actually happening. And so, we just manually adjust that S&P forecast based off what we understand and what we’re seeing from a customer basis and also from a consumer standpoint. So €“ just given the borrowing rates and what interest rates are looking like, we think there will be a little bit of a slowdown in terms of light vehicle production in the second half. .
Mark Delaney: Understood. Thank you.
Steve Downing: Thank you.
Kevin Nash: Thanks, Mark.
Operator: Thank you. One moment for our next question. And our next question will come from David Whiston of Morningstar. Your line is open.
