Steven Fox: I am not
Mark Mondello: I didn’t know. I just wanted to clarify. I don’t know if you are asking in terms of a macro slowdown, slowdown to Jabil, slowdown in absolute dollars or slowdown on our CAGR growth rates, so?
Steven Fox: Yeah. I was talking about your specific growth rate market.
Mark Mondello: Yeah. That’s — I think that’s fair. We have come off of, I don’t remember the exact numbers, but I think 2021 to 2022, the business grew north of 40%, 2022 to 2023 if things hold, it will grow north of 40%. I don’t think next year, it’s going to grow north of 40%. But I think, if I had to speculate, I think, of our eight sectors, I think, automotive and transport will certainly be towards the top in terms of growth 2023 to 2024 on a relative basis. I mentioned on Ruplu’s question on how the margins, I think, again, when we look at the back half of the year, we are really, really satisfied, excuse me, with overall margins and really satisfied with margins taking it up 10 bps for the year. Intertwined in that, though, is we have a ton of activity going on in auto EVs at the moment and there’s a lot of that activity that hasn’t reached maturity yet and we expect it to do so in 2024.
So almost independent of whether the growth is 10%, 20%, 30% next year. I think the activity and the efforts we are putting into that space at the moment are going to have a good result and a good outlook and outcome in 2024.
Steven Fox: Thanks for that. And then in terms of the health care outsourcing accelerating?
Mark Mondello: I think we — we have been saying this since we did the JJMD deal and then we got hit with COVID. I think, philosophically, we are directionally correct in our hypothesis around opportunities to be able to capture more and more outsourcing in the personalized digital overall healthcare space. As you know, it’s a very, very, let’s just say, formal marketplace. So decisions are very well thought as they should be with a lot of patients being involved. But nothing’s changed at all in terms of our overall thoughts and commentary we have been making the last couple of years in terms of how that market looks for us and how we are positioned for that market. I think timing has been a little bit slower than we anticipated, but nonetheless, the trajectory of that is still in really good shape.
Steven Fox: Great. That’s a very helpful. Thank you.
Mark Mondello: Yeah.
Operator: Thank you. Next question is coming from Melissa Fairbanks from Raymond James. Your line is now live.
Melissa Fairbanks: Hi, guys. Thanks very much. I have got two questions, they may be related, so I will just ask them both at once. It’s great to see you raise the full year revenue target for industrial and Semi-Cap. You did mention the strong growth in renewables. I was wondering if you could give us an update on your expectations for the other businesses in that segment, Semi-Cap and elsewhere? And then as a second, very nice move higher on the operating margin target for EMS as Mark highlighted, what’s driving that upside? Thanks.
Mark Mondello: Okay. I will start and Mike and Kenny can chime in. I think the beginning of the year, we thought industrial Semi-Cap would be, I don’t remember the exact numbers, but say, around $4.2 billion, $4.3 billion. We have got that now indexed around $4.5 billion. The nice thing is we are seeing, and again, this is just another statement of how important it is to lean into the diversification of the business today. But we are seeing some overall weakness in Semi-Cap. Again, down the road, we think that, that makes a nice recovery, even with that combined industrial Semi-Cap compared to September is going to be up $200 million and maybe a little bit more than that. I think a big part of that is we are absolutely seeing benefit from the Inflation Reduction Act.
