Aaron Erter: Yes. Hey David, I know there have been a few positive comments out there from some of the recent, from some of the big builders on results calls, but just to ground things, and I hope they’re right, but I would be cautious there with some of these comments. If we look at some of the data providers that we utilize out there, the projection we have for 2023 is for single family new construction to still be down call it 17%. And even though there were some positive comments around foot traffic, of the 12 publicly traded big builders who released earnings in the past few weeks, to my knowledge, only four of them provided guidance for orders for their next quarter. And that guidance Jason checked me here, if I remember, was for orders to be down 18%, 20%, 50% and 60%, respectively.
So not trying to be negative, just realistic, I think we need to be balanced here. So for the most part, I mean, the fundamentals are still there in that we have affordability issue with housing that may take some time for the markets to fully adjust to. So as I said before, I mean, I keep saying this to the team over and over, we’re going to focus on what we can control and we’ll win in the markets we participate in, but those things we can’t control.
David Pace: And with R&R continuing to outperform new construction, is 65:35 still a fair representation?
Aaron Erter: Yes, it’s a really good question, David. I would say for now, yes, but it’s something we’re keeping our eyes on, so it’s a really good question, but yes, I would say for the foreseeable future.
Operator: Your next question comes from Paul Quinn with RBC.
Paul Quinn: Yes, thanks very much. Just a question about your balancing the manufacturing footprint. Why reduce shifts across the network as opposed to shut one specific facility and lower the overall cost?
Aaron Erter: Yes. Hey, Paul, great question and I’ll have Jason jump in here because he’s very experienced and has lived through this. But as we analyze what to do with the team, one of the things that we at James Hardie always want to be is long on capacity to make sure we’re servicing our customers. When you take a whole plant down, it takes a considerable amount of time to get it up and running. And we want to be there and be responsive to meet our customers’ needs and be able to fulfill the demand that they have out there. So it is a little bit of an investment for us, but we think the right one to make.
Operator: Your next question comes from Shaurya Wasan with Bank of America.
Unidentified Analyst : Hi, Aaron, Jason. Thank you for taking my question. Can I circle back on pricing, please? Now just curious, have you seen any pushback on pricing from the builders? And I ask that because we’re increasingly hearing from some building product categories, right, like roofing and flooring come to mind. They’re seeing a pushback on pricing from the builders. I’m just curious, especially given that both these categories are also highly skewed towards R&R. I just want to get your thoughts on any pushback on pricing from builders. Thank you.
Aaron Erter: Yes, Shaurya, as you can imagine, in this really competitive time when the big builders are seeing volumes down, certainly they are price sensitive. So, as I mentioned before, one of the things that we try to do by having the largest sales team out there who are hand in hand with our customers is understanding the solutions that we can bring to our customer base, whether that be an R&R or a single family new construction. So we are utilizing tactical pricing where we need to, and we are bringing in lower cost alternatives like Cemplank where it makes sense. So I would say we’re adjusting and working with our customers to help them drive their business in this time.
