Alok Maskara: Gautam Khanna, I’ll take that. It’s unclear. Our exposure to repair is much lower than some of the other players in the industry, as you know. So we have read the same transcripts and we have gone through the same earnings and that does cause us some concern. But when I look at our own results and what we’re hearing from our own dealers, we don’t see that. So I mean I’ve read the same thing. It makes us a little cautious as we look at the guide going forward and making sure we continue to train our dealers to inform the consumer and make a very informed sale. But at the end of the day, as price of refrigerant keeps going up, whether it’s R22 or 410A as cost of repair keeps going up and the fact that new units come with full warranty and are making it better in terms of efficiency our dealers do the right thing to educating the consumers around it.
But we have read the same things. We have not heard that or seen that from our channel or our dealer base yet, but we’re going to keep a close eye on that for Gautam.
Gautam Khanna: Okay. And just to reconcile a comment, I think you made to Steve on book-to-bill and then earlier on productivity and within the commercial business. It sounds like I’m just curious at what level of backlog are you kind of operating off of this at this point? Because it sounds like had you had capacity to do more, you would have shipped more. Yes. Just I’m curious like how much of the next quarter or two is actually visible to you in terms of demand?
Alok Maskara: So I think we — and maybe the term backlog is used differently by different companies I mean when we think of backlog, it’s for us, orders that are POs in the system, right, confirm. And then there’s pipeline, we could be having discussions with the customer and getting their commitment about shipments in 2025 but those are not confirmed PO in our system. So our pipeline visibility is much higher, and we can see that through the next 12 to 18 months, but there’s a conversion drop out in there. So we can be 100% sure. What we’re 100% sure is our backlog. Typically, we book and ship within the same quarter. And during supply chain disruption, it became more than one quarter, and now we are back to sort of within the quarterly range.
And we don’t want to get into a situation where we start publishing backlog numbers because it’s really not that relevant to our business. It is all within the quarter. So that’s the comment on the backlog that I specifically mentioned.
Michael Quenzer: And I’ll just add to that. It will be even less important as we move more into merger plus, that is really fast backlog activities.
Gautam Khanna: Yes. And just maybe a last one for me on that productivity journey at the commercial facility in Arkansas, like how far along are you in that journey? Are you kind of where you expect to be? And I’m just curious like how much headroom is actually left in terms of throughput and as the supply chain has gotten better and the like. How much upside do we still have?
Alok Maskara: There is upside remaining. And I think some of that has to be captured after the second factories online. I mean right now, we are still running at as I called it earlier, sometimes with band-aid and tweaks, I mean we have put in new management, great leaders. We have got sold or labor issues. So, there’s a lot of good things going on there. But from a lean operations perspective and to be able to run a factory with consistent output, very low defect rates, very little rework. We have significant room for improving productivity in that factory. A lot of that is happening, but a lot more will happen as we get the second factory online and not run the factory above sort of where its capacity has been or what we think is capable of. So, some of that will happen only after the second factory comes online. Second, we’ll keep working through that.
Operator: Thank you for joining us today. Since there are no further questions, this will conclude Lennox’s third quarter conference call. You may disconnect your lines at this time.
