Scott Santi : Yes. I guess I’ll — my response would be that there’s no way that we can break this apart into various pieces. What I can say is that the proof is in the pudding. Ultimately, it’s in the performance and our ability to consistently outperform. We’re not claiming victory here. We’re not — we’ve got a lot of room to go across the company in terms of our ability to consistently deliver the kind of organic growth that we’re capable of. But what we are saying is that we put a couple of years on the board, where we are growing our peers in the aggregate. Now what percent of that is our market exposures versus theirs or different approaches to pricing or supply capability? I’d say all of the above. In the end, it doesn’t matter as long as we’re able to consistently outgrow our peers and outgrow our markets and that’s really the goal.
Joe O’Dea : And I guess related to that, as you’re seeing maybe supply chain ease, and I don’t know if competitors are in the market in a little bit more competitive way. But any challenges now that you didn’t see maybe 6 or 12 months ago?
Michael Larsen : Yes, I think, Joe, from the beginning, the Win the Recovery positioning was all about strategic share gains focused primarily on our existing customers. And we were not interested in opportunistic onetime orders. And so we’re pretty confident with that direction. These share gains are going to stick. I think the pandemic and the supply chain kind of disruptions were a great opportunity for ITW to demonstrate how differentiated our supply chain capabilities are for those customers that didn’t know. And so I think that’s been really — that’s what’s contributing also to the outgrowth relative to peers. I mean that’s one more element of the equation as you talked about with Scott.
Joe O’Dea : And then I just wanted to clarify on the average daily sales plus 2% versus seasonal — or plus 4% versus seasonal plus 2, the degree to which that’s underlying demand accelerating versus maybe backlog burn. I think it’s hard to parse given broadly inflated backlogs out there what underlying demand trends look like. But any comments on what you’re seeing sort of underlying accelerate versus decel?
Michael Larsen : Well, I think we’re not a backlog-driven company. As you know, we don’t carry a lot of backlog. And as you also say, it’s hard to parse out what was backlog versus new orders. So I’m not sure I can give you a great answer. What I can tell you is that, typically, our sales per day go up by 2%. If you go back and look in time, and they went up by 4%. And so things are definitely not slowing. And we’ve got some great momentum going into Q1 and 2023.
Joe O’Dea: Great. I appreciate the color.
Operator: Your next question comes from the line of Julian Mitchell of Barclays. Your line is open.
Julian Mitchell : Good morning and thanks for squeezing me in. Maybe I just wanted to circle back to the organic sales growth guide and totally understand you don’t take an elaborate macro gyration within that, and that’s a very sensible approach. But you’ve got the 4% growth guide for the year as a whole organically at the midpoint. You just did low double digit the most recent quarter. So just want to understand how we think about that sort of step down. Is it a steady deceleration as we go through the year? Anything in particular we should bear in mind on one or two-year stacks? Any color at all really that you could give on and how we think about the plus four moving through 2023?
Michael Larsen : It’s all in the comparisons year-over-year, Julian. So like I said, we expect the year to play out from a revenue standpoint, in line with our typical cadence. And so Q1 starts out a little bit lower and then we kind of improve from there. But there’s nothing baked in, in terms of a big acceleration in the back half or deceleration in the back half. We’ve kind of done our best here to model current levels of demand risk adjusted for the areas where we’re seeing some slowing in demand and we come up with 3% to 5%. I think if you run the math, you’ll see kind of the first half is the growth rates are maybe towards the higher end of that 3% to 5% and the second half is towards the lower end, and that’s all driven by the comps on a year-over-year basis.
Julian Mitchell : That’s very clear. Thank you. And then within Construction products, I don’t think we built with that one yet. Apologies if you have to repeat anything. But that’s sort of down for guide for the year. There’s a bit of price in there, some maybe volumes are down high single digit or something. But maybe just help us understand what’s embedded within that? I think simplistically, you have 1/3 is resi new build, 1/3 is resi replacement, 1/3 is commercial. Those three big pieces, how are you sort of thinking about those this year?
Michael Larsen : I mean the big driver, Julian, is the housing market, new housing. And so the residential side is about 80% of our business here in North America, and that’s where we’re seeing some slowing, which we’ve talked about since the summer, I think. So there’s nothing new here. And that’s the big driver here.
Scott Santi : The commercial side is hanging in there. As I said, it was also our strongest business in the summer after the pandemic.
Michael Larsen : Right. I mean…
Scott Santi : Part of the advantage of the different end market exposures that we have. And we can — we’re always going to have some in the tailwind mode and some in the headwind mode, but the net mix of it all is pretty positive. So…
Michael Larsen : Yes. It’s going to be down a little this year, but it’s also been a business that’s really performed well for us when other parts of the macro have been challenged. So…
Julian Mitchell: That makes sense. Thank you.
Operator: Thank you for participating in today’s conference call. All lines may disconnect at this time.
