You’ve talked in generalities already about kind of next year, but is that being one of the largest, you have the best data set for next year, except for perhaps another competitor about starts. What are you seeing right now? I mean, to make it a little more specific around production builders, I mean they are holding price or the reduced price. Why should we not expect a kind of price mix drag next year, I guess, would be my question.
Michael Miller: We do.
Ken Zener: But it is not necessarily bad amid stable pricing and efficiencies. In regards to your long-term operating leverage.
Michael Miller: Correct. And while our average job price with some of the large production builders is lower than it is with the regional local builders, which makes complete sense because they are building more efficient homes and lower square footage homes on average, right? So there is less insulation that actually goes into them. But we feel very good about our relationships with the biggest production builders and our ability to size up with their intentions to grow both orders in double digits and high single digits closings next year. We work at the local level very closely with the production teams of those large builders to make sure that we’re there for them when they need us. And they expect that, and we deliver that.
And then as it relates to your kind of growth patterns but also this internal or local skill set you have, I’m looking at Slide 12 on your 3Q presentation where you talk about right penetration in markets where developed where you have a lot of – well, basically, your take is 4,400 where you’re established compared to, let’s say, 2,200. How does a slowing activity or a shift to more production builders traditionally affect that side of your business in terms of your ability to go deeper with customers. Is there anything that you can expand on their market volatility tends to create opportunity?
Jeff Edwards: It really depends upon the customer. I would say that in the developing markets, they can tend to be larger production builder markets than some of the more established markets. And I would say that we’re doing a good job of trying to cross-sell the other products into that production builder base. And quite frankly, which is a little counterintuitive to some of the things that we’ve said in the past relative to the other products. But as their production increases, they value more our ability to provide multiple installed products for them, especially these – which we’ve talked a lot about, the small dollar value nuisance products that we install. So it should help to improve the characteristics of the developing market with those production builders.
Ken Zener: Thank you.
Operator: Our next question is from Keith Hughes with Truist Securities. Please proceed with your question.
Jonathan Bettenhausen: Hi, this Jonathan Bettenhausen on for Keith. Thanks for taking the question. So the total installation volumes year-to-date have held up much better than the peak housing starts declines. I may have missed this, but I was wondering if you could give us an indication on how much of that relative outperformance is backlog support? How much of that comes from like pivoting to a commercial business?
Michael Miller: It’s a combination of really all of that, quite frankly, and the team is doing an excellent job of performing and executing on all the things that we’ve talked about previously in the call. So yes, it’s a combination of all of that.
Jonathan Bettenhausen: Okay, thank you.
Michael Miller: Sure.
Operator: We have reached the end of the question-and-answer session. I’d now like to turn the call back to Jeff Edwards for closing comments.
Jeff Edwards: Thank you for your questions, and I look forward to our next quarterly call. Thanks again.
Operator: This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.
