Greg Wasikowski: Okay, great. That’s helpful. Thanks, David. And then somebody has got to ask about D&S, so I guess I’ll do it. Are you expecting to — I’m just trying to see like kind of where that stands heading into 2023 now that the strategic review is closed? Are you still expecting to kind of market that business for sale into 2023? Are you only entertaining unsolicited offers at this point? Obviously, under the caveat that you’re always evaluating all options for shareholder value yada, yada, yada. But just trying to see how front of mind this is for — going into 2023? Or is it more of — in the rearview mirror at this point?
David Grzebinski: It’s more in the rearview mirror. But look, I mean, you said it well, we’re always open to ways to hedge shareholder value. And should the market change? Or something happen that makes us spin off — makes sense? We’d absolutely look at it. That said, the business is really strong right now. We’ve had good in-bound, our electrification kind of a product offerings are very strong. E-frac is doing really well. Whether it’s backed up power generation, that’s always also doing well. And if you think about it, everybody wants power 24/7 and when you start worrying about the fragility of the grid that makes even more sense. On highway, our commercial and industrial business is strong. Our marine repair business is strong.
So as we look at KDS going into €˜23 and into €˜24, it feels pretty good, kind of, reiterating some of our thoughts about Kirby. But both our marine business and our KDS business are in good solid up slings that we feel will last for several more years. So KDS is strong, but that’s it. I’ll go back to kind of the way you’ve phrased it. We’re always open for ideas. We ran a very thorough process on this and we’re focused on executing our strategy right now. But if something changes, we’ll absolutely look at it.
Greg Wasikowski: Okay got it. Thanks a lot guys.
Operator: Please standby for our next question. Our next question comes from Ben Nolan with Stifel. Your line is now open.
Ben Nolan: Hey, David. Can you hear me, okay?
Raj Kumar: Yes.
David Grzebinski: How are you doing, Ben?
Ben Nolan: Oh, great. Good luck. How are you guys?
David Grzebinski: Good.
Ben Nolan: Good. I wanted to — if I could, just circle back to where we were just left off from the D&S side and then also mix it in there a little bit with what you were talking about. With respect to pricing for inflation. The margins were a little bit lower than I thought given, sort of, everything that’s going on in tracking equipment and the pricing power that seems like it should be there? Should we think of that as just a function of there’s been a lot of inflation in that market. And so you’ve had a lot of pricing power, but it basically kept up with inflation. Now to the extent that maybe inflation is beginning to moderate, that’s really where you should see margins? Or is there some sort of economies of scale, dynamic where — now you get to a certain point where margins just inflect, because you’re able to do a little more volume? Or how should we think about the margin profile on that side of the business?
David Grzebinski: No, I think you characterized it very well. In slates, we’ve been raising prices in with D&S, but it’s basically kept pace with inflation. The other thing we have is a little bit of a supply chain, kind of, margin erosion. And let me give some context around that. Talk about $1 million piece of equipment with 400 to 1,000 parts and all of a sudden you can’t get some parts, certain parts and so you reengineer a replacement part and this is pretty sophisticated equipment and we like to make sure we’ve nailed the engineering down. So every time you shift a source or shift a part design or something to meet a supply chain headache, it adds a little cost. So there’s that dynamic as well. So it’s an inflation and a supply chain dynamic that’s impacting margin.
That said, our guys are pushing price and they need to, right? I mean, we’ve got to offset these costs. But I would just say, particularly on our KDS manufacturing, the supply chain has been really, really tough. It’s not new. Everybody’s saying it. But some of our OEMs for some engine deliveries, we can’t get engines until 2025 even ordering now. So the supply chain issues are still real, but it’s something we’re working through. And the good news is demand from our customers is there. And it’s really us in hand-to-hand combat dealing with delays that come inevitably. When you’ve got a parts list that runs in the hundreds and you’re short one or two parts that are key to finishing the equipment. That said, you know, we’re keenly focused on getting KDS margins up into the high single-digits and got the whole organization working hard towards that.
Ben Nolan: Okay. That’s helpful color. I appreciate it. And then I wanted to talk a little bit about just barge supplies. You mentioned it with respect to supply and demand pricing really enough. We’ve seen that what I think that we’re 22 tank barges delivered last year, some ridiculously small number. It would seem to me that there’s probably likely to be a shrinking of the barge fleet this year and that would lend itself to substantially higher secondhand prices. I was wondering, if you could maybe characterize that? And then to that answer, how do you feel about buying equipment or other companies, if there is a little bit of price escalation for secondhand equipment?
