Steve Barger: Understood. And Steve, I know you’re just settling into the role, but are you thinking about any changes to organizational incentives for the sales teams or any other initiatives that you want to pursue? Or do you like how things are organized now and it’s running the way you like it?
Steve Hedlund: Well, Steve, there’s always room for improvement, right. We have a continuous improvement mindset. So we’ll make tweaks to various elements of our organizational model as the business continues to grow and evolve. And in particular, as we look to capitalize more on our global scale and scope, particularly in things like R&D. And as I alluded to in my comments, global procurement. But as we sit today, we’ve got very solid momentum. We’ve got many opportunities and catalysts for growth in front of us. We’ve got a strong and experienced team that can capitalize on that. So I really like the position we’re in, and it’s really just fine-tuning our approach to a few things to enable us to take the next step forward.
Steve Barger: All right, thanks.
Operator: And next up, we’ll go back to Robert Jamieson, UBS.
Robert Jamieson: Hey, good morning. Congrats on the results, and thanks for taking my questions.
Steve Hedlund: Hey, Robert.
Robert Jamieson: Hey, so just – incrementals are really solid. It was above the high end of the guidance you gave for the year 2023. Just curious if you could give us or provide us what incrementals would have been ex-Fori and that would just be kind of helpful to kind of gauge how that looks versus what’s baked in your guidance for next year?
Gabe Bruno: Yes. So Robert, you’re right. I mean, we did progress strongly on incrementals in this fourth quarter with and without Fori, I think we’d be mid-30s without Fori. But Fori, we just have executed very well. And the assumptions for 2024 being in that low to mid-20s, that’s within our traditional range, and that is with the Fori business. We do expect to continue to drive improvements in our operating model for automation business. And I’ll just remind you that our target is to be at the corporate average for automation. So we ended 2023 in the low teens in the EBIT profile of automation. So when you look at it holistically, 300 basis points of potential there. So we feel really good about our posture coming into 2024 with a continued focus on developing our business model.
Robert Jamieson: That’s helpful. Thank you very much for that. And then I guess one last one. I mean, automation, the margins there continued to expand which is nice to see. I guess, can you just talk about some of the drivers that are underlying that? I know a lot of it’s probably LBS and some of the initiatives there on efficiency and productivity, but just curious what else you’re working on and where you’re seeing other benefits? Thank you.
Gabe Bruno: Yes. So I would point to our Lincoln Business System in automation. And it is about that discipline on execution. When we think about Fori, if you remember, we were into low double-digit type of an EBIT profile and we have a clear line of sight in developing the model that we acquired into our overall automation strategy. So it’s about the discipline in managing projects and managing the cost and execution, the labor efficiency, the capacities around the group. So that’s the driver. So we will continue to develop capabilities around our Lincoln Business System that gives us confidence that we’re going to drive to our long-term targets in our automation.
Robert Jamieson: That’s great. Super helpful. Thank you.
Operator: We’ll now take a follow-up from Mig Dobre, Baird.
Mig Dobre: All right, thanks for taking a follow up. I figured since this is your first call, Steve, I can’t let you get off the hook earlier than normal.
Steve Hedlund: Well, I think you get one follow-up. I’m surprised you want to use it up so early in our relationship, but that’s fine.
Mig Dobre: All right. I wanted to ask a question about Harris. So you had volume compression in 2023 and can you talk about consumer being – the consumer portion being weak and HVAC being an issue as well. But the margins were actually pretty good, at least relative to high expectation and arguably speaking relative to history, too. So how should we think about this segment going forward? I mean if we’re getting back to volume growth, what’s the margin potential here? Can we look somewhere above this high 14s, 15s can this be a high teens margin business?
