Mig Dobre: And presumably, that has some staying power beyond this quarter?
Michael Larsen: Well, I think that overall construction in North America actually remains fairly stable. I’d say maybe a little bit more concern on the international side, which has been weak. The market demand has been a lot softer on the international side. But North America – keep in mind that in the fourth quarter, typically, we talked about seasonality by segment, I said Test & Measurement usually does better. Construction is one where, for obvious reasons, the fourth quarter is typically a little bit lower than the third quarter. But in terms of the share gains and our – the strength in this particular part of the business, that absolutely has staying power.
Mig Dobre: Great. Then my follow-up, maybe on Food Equipment. I’m curious as to how the supply chain has sort of evolved for you here and where your lead times are? I know you’ve got a number of verticals within this segment, but some context there would be helpful. And also, where are you from a backlog perspective? Are you seeing any sort of noise in the channel around destocking? Or is the segment perhaps less impacted than others? Thanks.
Michael Larsen: So Mig, just from a lead time perspective, I would say that a natural outcome of our business model is best-in-class lead times and customer-facing performance. And we are very much back to where we were pre-pandemic in terms of our ability to supply our customers. In terms of the channel, yes, I think it’s an area where there is a little bit of inventory in the channel. We’re seeing that coming down. It’s probably still out there. It’s one of the segments that has been impacted, I think, by channel inventory likely to come down over the next couple of quarters here, but it’s fair for sure.
Christopher O’Herlihy: Yes. And then just on the backlog, we’re back to normal levels which, in our case, given our customer delivery performance is two to three weeks. So we’re back to kind of normal levels here.
Mig Dobre: All right. Appreciate it. Thank you.
Michael Larsen: Right. Thank you.
Operator: Your next question comes from the line of Joe O’Dea from Wells Fargo. Please go ahead. Your line is open.
Joe O’Dea: Hi. Good morning. Thanks for taking my questions and congrats to both Scott and Chris. I guess, I wanted to stay on that topic in terms of the channel inventory normalization it is something you talked about last quarter. I think size is pretty similarly last quarter. And so the question is just any changes that you’ve seen from kind of June, July into where we are now in terms of the trends on some of that inventory rationalization, whether regions, end-markets, pace of it or if it’s all kind of trending in line with expectations as of a couple of months ago?
Michael Larsen: I’d say this is trending right in line with expectations that we kind of laid out on the last call. Like I said, the drag on the organic growth rate of 1% to 1.5% was pretty broad-based, every segment had some impact, very similar Q3 as Q2, and we think this will probably be with us for a few more quarters. And I’d just say, if you just look at our own inventory levels, we are currently running slightly above three months on hand, where typically we’re running at low-twos. And we estimate that in our case, it will take us probably until kind of early mid next year to get back to normal inventory levels as we work through the exact same things that our customers and channel partners are working through. And I might just add here that that’s obviously going to continue to drive some really strong free cash flow performance for ITW as inventory levels, working capital continues to normalize, as a result of supply chain having stabilized.
