John Turner: AMES is a driver. We don’t see margin improving, but we don’t see any reason the Complementary margin would be declining. So our margin guides always include the entire business. But yes, AMES as Scott called out, right, incremental gross margin from acquisitions, AMES is a great company, continues to operate at very high gross margins, a wonderful part of our business now. And in general, our Complementary business has leveled off, let’s say, at much higher margins than we would have thought. And some of that is the mix of products that we’re able to sell as we talked about, particularly tools and fasteners, EIFS and stucco, and insulation were up 30% plus versus the whole at what I say, 26.5% or something in that neighborhood. So we’re gaining traction in a good mix of Complementary Products as well.
Steven Ramsey: Excellent, thank you.
John Turner: Thanks, Steven.
Operator: Thank you. Our final question this morning comes from the line of Matthew Bouley with Barclays. Please proceed with your question.
Elizabeth Langan: Good morning. You have Elizabeth Langan on for Matt today. I was wondering if you could talk a little bit about how you’re thinking about SG&A going forward, kind of how you’re thinking about cost leverage as residential volumes come down and maybe you still continue to see that strength within commercial. But how should we be thinking about costs within that basket and maybe how that relates to your plans for spending on like productivity and automation?
Scott Deakin: So I’ll kind of work backwards and I’ll really start with how we managed the business during the early days of COVID when there was a lot of uncertainty out there. We really took a lot of actions very quickly in a very focused way to manage the cost of the business. And I think you certainly saw that in our results in terms of the incrementals we were able to — and decrementals we were able to manage. We took some pretty tight actions there. And I think the learning from that is we would do that again. Specifically to your point on automation and some of the things we’re doing around the Art of the Future that is one area that we did not skimp on. We continue to focus on those strategic investments, both in terms of CapEx as well as spending.
So I think you would see us do that again. Bringing your question all around and full circle to the types of things we’d be focused on in this environment, we’re actually fortunate right now that we’ve got a higher level of what I would call actionable types of things that we can affect in this environment if we saw a marked downturn. For example, incentive and bonus compensation is relatively high because the business is doing well. If that were to shift at all, we’d be able to move that down. We have other variable expenses like fuel, like maintenance, like those types of things that are truly activity driven in the business that would flex really nicely. And then also in this environment with being quite busy, our levels of contract labor, for example, are relatively high.
So we’d be able to take actions on that before we got into the types of things that would be a little bit more difficult to affect. But again, looking back at how we handled the business during the early days of COVID showed a lot of discipline in how we manage those costs, and I think you very much see us do that again.
Elizabeth Langan: Okay, thank you. That’s really helpful. And then I was also wondering, following up a little bit on the Complementary side of things is a larger part of your business now, and that has kind of been a point where there have been a lot of acquisitions. Is that an area where you expect you’ll continue kind of building out those offerings there? And are there any other spots within the business where you think maybe there’s a different vertical you eventually want to enter?
