Julian Mitchell: That makes sense. Thanks very much.
Vicente Reynal: Thank you.
Operator: And your next question comes from the line of Jeff Sprague with Vertical Research. Your line is open.
Jeff Sprague: Hi. Thanks. Good morning, everyone.
Vicente Reynal: Good morning, Jeff.
Jeff Sprague: Hi, good morning. Vicente, can you elaborate a little bit more on your talking about demand in ITS and compressors in particular, you noted reshoring and ESG? I guess on the ESG side, you’re pointing to kind of energy efficiency sort of investments and retrofit. But a, is that the case? And b, can you just elaborate a little bit on what you’re seeing in those two buckets?
Vicente Reynal: Yes, Jeff. So absolutely. I mean, again, we’re very pleased with the momentum that we saw on the compressor product line, and particularly, you saw that oil-free compressor outpacing the growth and that was kind of high 20s momentum that we saw on the oil-free. So very, very exciting to see that one of the core strategies that we launched continues to actually see some fruit and growth. In terms of ESG, I mean we continue to see that the energy savings, again, based on the return on the investment that we have conversations with customers still is resonating quite well and — so that momentum continues. Our few earnings ago, we spoke about the air audits that we’re doing. We continue to do that at a faster clip than ever before, and that’s really driving a lot of good leading data points for us as we see kind of moving forward.
And from a reshoring, yes, it’s kind of whether you think about reinsuring companies expanding capacity or reallocating their supply chains more locally. I talked about also near-shoring because clearly, in Mexico, we’re seeing a lot of expansion too as well. And we have a very strong team as well in Mexico there that is really capturing some good momentum to as well. But this reshoring is happening here in the U.S. We see it, that’s why we reopened Buffalo at that time, but we also see it in India, and we see it in China as well. So we see good momentum of companies really investing in the core technologies and in particularly here, the compressor systems.
Jeff Sprague: And maybe you could give us a little color on service too, Vicente. I would imagine if customers are going through the air audit process that creates quite an opportunity for service and stickier service attachment on the back end. Where are you at now on service as a percent of revenues? And how is that growing?
Vicente Reynal : Yes, absolutely. Jeff, particularly the statistic that we said before is that roughly these are audience, we see kind of a 70-30, 70% leading to new equipment, but 30% leading to actually incremental service revenue. And we’ve seen good momentum in terms of — we spoke a lot about Care and the Packaged Care solutions, the team in North America continues to really accelerate that. And we’re seeing now better momentum as well in our team in Europe and also in team in Asia. So yes, this continues to be very front and center in our strategy and particularly as we continue to connect more compressors with our remote monitoring devices and be able to capture more recurring revenue here. So yes, we continue to be actually a one that we see good momentum to come.
Jeff Sprague: Great. Thank you.
Vicente Reynal : Thank you.
Operator: And the next question comes from the line of Rob Wertheimer with Melius Research. Your line is open.
Rob Wertheimer : Hey, good morning.
Vicente Reynal : Good morning.
Rob Wertheimer : Vicente, I think you touched on China, APAC orders and compressors up mid-teens. I think that’s comping mid-teens. And so — I know you called out kind of the good job the team has done there. Is there any particular end market strength in China that’s adding to that? I think we’ve seen China be a drag elsewhere in industrials. And then just in general, I don’t know if you can expand on your market position there and the broader efforts you’re doing? Thank you.
Vicente Reynal: Yes, Rob, I think there’s definitely some in markets that strategically we’re going after more pronouncedly than others because we’re seeing the growth in those you could think about electric vehicles, battery production, lithium, mining and things like that. But a lot of that, as you very well said too, as well, it kind of continues to change end markets. And I think the ability for us to pivot from 1 end market that has seen some growth to the other end market that are starting to see the spurt of growth, that is what I think is very core to what the team very nimbly is doing. In addition to that, I think what’s exciting is the combination of the Gardner Denver and Ingersoll Rand company, where the team in China is leveraging a lot of the kind of, call it, legacy Gardner Denver products of blowers and the vacuums to really accelerate growth.
