Chip Moore: Got it. Appreciate it. I’ll hop back in queue. Thanks.
Operator: Our next question is from Steve Ferazani from Sidoti. Steve, your line now open. Please go ahead.
Steve Ferazani: Good morning everyone. Thanks for all the detail on the call. I did want to revisit a little bit of the previous caller’s initial questions in terms of backlog and go a little bit further in terms of looking at your orders and dollars per unit. The last three quarters remained pretty, pretty steady. Trying to think of not only the stickiness of backlog but how you’re thinking about pricing given your backlog remains so significant, and how much business you might be just turning away right now versus starting to pick up again and maybe being a little bit more flexible on pricing?
Al Rankin: Yes, so I think if certainly as the share of the market is down because of the approach we are taking because of the approach. We’ve been very strict on our pricing and margin requirements given our backlog condition and our ability to deliver trucks. And we’ve seen the market accept that again, Al said this is an unusual market that we haven’t seen before, and we’ve got customers now talking to us about their 2024 needs. And as we move towards taking this industry based solution approach to solving our customers’ problem, we are kind of working with them to really put the right truck in the application. And because of the modular scalable solutions that we have, we can €“ at the right price, you can get the right cost for the application and that will support our margins.
So I think it’s not just the firmness on the pricing, but also some of the initiatives we’ve put in place. Over the last three years, it’s really supporting our approach. Now, there are customers who are not yet adapting that approach and we €“ and still trying to bid and buy on pricing terms, and those are the ones that we’re not staying away from, but we’re trying to work with them to find the right solution for the value proposition they’re looking for. And this is where our investment in China could be and in Fuyang is the production facility will become more and more important. As we put the right trucks in the right solution at our target margin again, our focus is to €“ we have an economic model and we want to place these trucks at customers at target margins, not the most margins we can get, but at target margin.
Al Rankin: This is going to be a very, very much reinforcement indeed, almost duplicative comment. But it’s really important from our vantage point that as our backlogs and our current €“ begin to contract, and we need to be more competitive, more broadly in the marketplace, we expect to have new products, particularly including the Fuyang products coming on in a time cycle, which very much fits the need pattern that we anticipate as the backlog comes down. So that’s a very fortunate condition from our point of view, but it’s also the result of the €“ some of the strategic programs that I outlined, particularly the modular and scalable product program and the way it comes online first with the two to three ton pneumatic trucks, and then it cascade into other trucks including the more standard types of trucks that are below the base levels of our most recently introduced modular and scalable trucks. So it’s a good fit. We’re encouraged.
Rajiv Prasad: Yes. We’re very passionate about putting the right truck in the application and getting our target margin. That’s the way we want to develop the market and our commercial strategy.
Al Rankin: So the way I think to think about it is that we expect to maintain good margins, but we’ll do it in a little different way than we’re doing it right at the moment.
