So we got a nice position there, and that’s what’s kind of driving the bookings within the semi piece. Right now, I’d say that predominantly, it’s domestic. We are seeing some activity in Europe around the EU Chips Act. But really, the business is probably more indexed towards the domestic piece. I would say that the country that we’re really watching and are in the midst and was just there in December is the growth of foreign direct investment in India. And as chip manufacturing potentially pivots from China in India, so into India. And so we’re kind of on the front end of that as well, both large-scale Indian clients as well as foreign companies that are non-Indian clients coming into India.
Charles Dillard: Got it. That’s super helpful. And then just going back to the cost reallocation from [indiscernible] allocated to People & Places. Just wanted to get a sense for like how long it will take before you actually can hit the P&L. Do you have to go through like a full bid cycle. So in other words, do you have to like fully turn over the backlog before you see those benefits?
Robert Pragada: No, it’s gradual. It’s gradual. So those [indiscernible] starts the next quarter, I’d say from a full kind of actualization of those costs that goes in, it’s about a 12 to 24-month cycle. But just to reiterate, Chad, we’re reiterating our year-on-year margin improvement even with the gradual recoverability of that overhead.
Operator: We’ll go next to Sabahat Khan at RBC.
Sabahat Khan: Just a follow-up on the PA conversation earlier. Obviously, we see the bookings number. But I guess, as you’re talking to your clients in that space, are you seeing a bit of a pipeline build up there. That business is obviously a bit more macro impacted than the P&PS business but just wondering where sort of the conversations are that aren’t in the backlog right now for that business line?
Robert Pragada: Sure. I’d say that, so the 2 areas within PA that we’re getting 1 actually is kind of ubiquitous in today’s world as well as within the PA world. And then I’ll go to an end market sector, is the use of AI and AI enablement in our clients’ business as a driver of business transformation. And so to kind of toggle here, it’s good for PA, it’s good for Jacobs, in that the AI enablement is the start of the conversation. I think some clients now this kind of goes to how quickly does that get into an engagement, get into backlog, we realize in P&L. That’s kind of where we are right now as far as where we are in the cycle. So AI is a big driver. But the timing and speed of how our clients are embracing it is driving some of the booking cycle.
The second from an end market standpoint is Life Sciences. And so PA has been able to take not just AI, but other knowledge and look at the transformation of the whole clinical study program, especially as that’s kind of gotten more patient-centric with different types of therapies for each patient. PA has rightly been right in the middle of all of that. And so that kind of got a tail on it as well. And then the last one that is really kind of starting to develop in our pipeline at PA is around the use of AI in early-stage drug discovery piece, and it’s real, real early stage. I mean clearly, the Tier 1s are way out ahead. But PA does it from more of a standpoint of how that’s going to transform kind of the Tier 2 and Tier 3 clients. So some good stuff.
I’d say this the timing right now of how quickly those get embraced while clients are thinking about their own business is causing some of that near-term softness.
Sabahat Khan: Great. And then I guess on the P&PS side, there’s been some discussion about when some of the larger funding packages really got going. But — maybe if you could provide a little bit of color around your top line guidance for P&PS. And what assumption is in there from kind of contribution from the IIJA or the IRA. And — or how much of it is from kind of just base level business and how maybe the government funding is tracking relative to initial expectations?
Robert Pragada: Sure. Yes, I’d say that, that guidance that we’ve been pretty true to and I kind of — I mentioned a statistic there that 6% to 9% or mid- to high-single-digit growth and for the last 5 quarters, we’ve been right there on the high end of that range is where we’re seeing the IIJA component of that is we just saw some statistics that we’re — from a time line standpoint, halfway through, but on some of the larger rail and highway specifically, we’re 25% outlaid — 15% obligated and 25% outlaid on the actual money. So it hasn’t been a big piece of the growth. But the positive news is that it looks like that 5-year cycle is definitely going to get extended.
Operator: Our next question comes from Bert Subin at Stifel.
Bert Subin: Bob, just to follow up on that point. If we look beyond ’24 and maybe into ’25 and past that, it sounds like your visibility is generally improving not just in advanced facilities but in large parts of P&PS. As you think about potentially toggling you’re above what your medium-term view is for the segment, what would drive that? Is that more a function of winning some specific larger projects? Or is it the flow of funding under some of these programs?
