Lawrence De Maria: Okay. So is it safe to say that given the comments on the pipeline and the time to close, it’s a little longer, I mean those potential orders don’t go away, right? They either hit in the second half or they get pushed out to next year. Is that fair to say? Or ultimately, it’s the same timing.
Jeffrey Powell: Exactly. It’s very, very seldom that a project gets canceled. We had one canceled, a big project canceled I think back at ’22, I think it was. We had a project canceled. But it’s very unusual for that. You’re exactly right. They typically just get — they get delayed. These are — these big projects are quite lengthy from a board review standpoint anyway. And so once they get to that point, they normally don’t disappear forever. It’s just a question of timing on them. And so — and that’s what has introduced the level of caution that we have is we just don’t know where the timing is going to be next quarter or third quarter or fourth quarter, the customers just aren’t quite sure yet.
Lawrence De Maria: Okay. Fair enough. Last quick question. Parts and consumables and flow and industrial process, given the mothballing that we’ve seen, is it like — does it matter it’s just around overall volume and parts and consumables? Are you more or less guided up, whereas capital is guided down? Is that a fair way to think about it?
Jeffrey Powell: Yes. I mean what happens is, as you know, we operate in almost every paper mill in the world. And I know some people get hung up when they hear about a closure. And we never like to hear about closures, but I just mentioned overall demand is forecasted. If you look at total paper demand, in ’24, globally, it’s supposed to be up 3.3%, and it grows every year. So what happens is they just shift that to other more efficient mills, and we’re there, too. So we just picked the business up in one mill versus the other. And so we don’t get nearly as hung up on a mill closure announcement here or there. As long as overall demand continues to grow, we’re going to be there to get our fair share of that.
Lawrence De Maria: Okay. Very good. Thank you. And good luck this year.
Operator: [Operator Instructions] Our next question will come from the line of Walter Liptak from Seaport Research. Your line is open.
Walter Liptak: Hi, good morning, guys. Good end to your year. Wanted to try one on the Flow Control bookings, the plus 8.4%. I wonder if you could just give us some incremental color. Was that parts related? Was that capital projects? Maybe regionally, where the orders were coming from?
Michael McKenney: I’m looking for my schedule here on that. It was really — we had — it was both in parts and capital, but capital and Flow Control was quite strong in the fourth quarter. Actually, in December, we closed some nice projects. So I’d say that bookings beat was really led by capital and flow control.
Walter Liptak: Okay. Great. And is — you think that’s the start of a trend? Is there some follow-through? People are drawing down inventory, I think, and being cautious into the end of the year. But it sounds like its buck the trend a little bit.
Michael McKenney: Yes, it did, Walt, but I happened to know that we had our — the projects that came through those capital projects, they were on our board for ’24. So the orders were a little bit early.
Walter Liptak: Okay. Okay. That helps. And then I wonder, as you kind of alluded to this in some of the other questions. Last year, this time, you were getting that big 42-mile conveyor project in Material Handling. And that probably has already shipped now. That’s probably already through your process. But I wonder if it’s something you’ve got more in the funnel that are some of these bigger Material Handling projects. Is that right?
Michael McKenney: Well, on the large project that we booked in the first quarter, Walt, you’re correct, most of that shift of that $12 million, there’s still, I think, about $2 million to go. And a good chunk of that actually went in the fourth quarter, which is why you saw their revenue and other metrics margin and EBITDA were so good because we had excellent — on the EBITDA front, we had excellent operating leverage there.
Walter Liptak: Okay. That’s great. And it sounds like you’ve got — there’s a potential for some more of these big conveyor projects in the funnel?
Jeffrey Powell: Yes. That was the second longest in the world. So we don’t — we wouldn’t expect — although there are discussions for projects, we wouldn’t expect anything soon of that magnitude. That’s a pretty rare project. But generally speaking, the group has been strengthening over the last, I would say, 1.5 years. And the prospects — if housing picks up, certainly, that’s going to help them. The CHIPS Act is really a very large construction act. If you look at it, it’s mainly building plants. So that’s good for them as well as infrastructure. And then the recycling side, the baler business in the U.S. continues to be very strong and as well as Europe and other parts of the world. So all other segments have — I think, have had nice steady demand, and we expect that they’ll continue to be in good shape throughout this year.
Walter Liptak: Okay. Great. And maybe I’ll try one or two on the 80/20. Congratulations with the profit improvement that you guys have been seeing. And I thought that you might be further along than 50% of the plants started. I wonder if you could just refresh us how many P&Ls do you have? How many P&Ls — half of it, that half of the P&L, I guess, have started. But how many P&Ls do you have? And for 2024, do you have more that will be starting the 80/20 process?
