And I think retailers, as an example, give you one example. The strawberry production that’s going on from an indoor grow perspective is literally sold out and has been for the last couple of years. So, we have a lot of growers that how do we expand and how do we add that capacity? And their business models are such that getting funding, I think, is relatively consistent for them. In the interest rate environment because these guys have been around so long, they dealt in the world of double digit interest rates than they’ve been in the world of 2%. So they understand and how to manage through that. And I think anytime you see an interest rate change, there’s always a pause. We saw that the last year, thinking, hoping to see if it comes down or not.
But now that people understand that, hey, it’s elevated, it’s probably going to stay here for a while, then people are starting to move forward and accordingly. So, I don’t expect that to be a deterrent here going forward based on all the things that we’re actually designing right now.
Pete Lucas: Extremely helpful. Thanks. I’ll jump back in the queue.
Bill Bosway: Yep.
Operator: Our next question comes from the line of Julio Romero with Sidoti & Company. Please proceed with your question.
Julio Romero: Thanks. Good morning, Bill, and congratulations, Tim.
Bill Bosway: Hey, Julio, how are you?
Julio Romero: Hey. I’m good. So maybe to start on Renewables. When the Department of Treasury does finally issue final guidance for the IRA tax credit, how do you expect orders to trend as that bottleneck is lifted? Would it look more like a shorter term surge with folks kind of just waiting to sign on the dotted line? Or would you expect a more gradual uptick at that point?
Bill Bosway: Julio, it’s a good question. It’s probably going to be a bit of a combination of both. So they’ve got projects that are probably right on the finish line, that come through, get signed. How they actually get convert and putting in to the ground will be driven by A, customer schedule itself now that they have something finished, and B, if there’s any permitting challenge at that time. But I think what you’ll find is more of a gradual pickup, which is preferred, if you will, I think, for the industry, just because you’ve got to line up – line up the delivery base, if you will. So I don’t think it’ll be a flash in the pan overnight. All of a sudden, you get a big slug of orders, as much as it’ll be not trickling out, but I think it’ll pick up demand. But I think that’ll really manifest itself over the next six months, nine months, 12 months, it won’t all come in a short period of time.
Julio Romero: Got it. That’s helpful there. And then you said you started to see the permitting situation improve a bit in the fourth quarter. Have you kind of continued to see that improve throughout the first few months of the first quarter?
Bill Bosway: Yes, as we’ve talked in the past, it really comes down to there’s not a permitting issue for the country. There’s a permitting issue for each individual project that happens to be in the country. So it really comes down to where you’re putting your field and what’s going on in that local community in terms of backlog and how they’re processing and any other issues they’re dealing with. So if you’re positioned well – if you’re positioned with customers that aren’t seeing those problems, then you can see that become less of an issue. And we started to see that in Q4 of last year, where that became less of an issue than it was in the first – the last three quarters prior to that. So we believe it’s going to continue to get a little bit better.
As I mentioned in my comments, the amount of revenue shifting from one quarter to the next is tightening up, which is something good to see. And then the other thing that ultimately, at the end of the day is, look, if you’ve experienced a shift in revenue consistent in the year before, you should be able to plan on that going forward. Right. So you don’t get surprised. So it’s unless it shifts well beyond 25% where it did this year fundamentally, that shouldn’t be new news. So therefore your plan should be reflective of what you thought going in the quarter, just because you’re going off of a different base. So there’s a number of things that I think are going to play into that, but in general, I think permitting is getting better and that’s what we’re hearing from customers and hopefully that will continue.
