Operator: Thank you. Our next question comes from the line of Keith Hughes with Truist. Your line is now open.
Keith Hughes: Thank you. In the previous question, you highlighted your expectations but infrastructure and nonresidential. I was curious on your comments on light nonresidential being negative. First off, what specifically do you mean by light nonresidential and what kind of indicators you’re looking at showing that that you headlined.
Ward Nye: I think we’re talking more to, Keith, about office retail, the types of things that would typically follow single-family housing, and again, we’re not seeing and taking a deep negative dive, let me be really clear on that. We think it’s just going to follow housing for a bit of time. In fact, we think housing, particularly by the time we get to ’24 is probably in a pretty reasonable recovery mode. So we feel like the particularly light has never gotten particularly robust to tell you the truth. So we feel like it probably sees a bit of a dip, but if you’re looking specifically, it’s hospitality, it’s retail, it’s degrees of office. So as we’re looking at manufacturing, as we’re looking at energy, as we’re looking at warehousing or data or others, we see that actually is quite strong, but I just want to make sure I’m tying it for you back fairly specifically to those types of light things that would typically follow residential with depending on the market, a nine to an 18-month lag.
Keith Hughes: Okay, one other question too on cement. You have cost headwinds in the quarter. Do you think those headwinds remain at the same level in the first half? I know you said, energy, you expect to be kind of flattish. Is there anything else that’s potentially coming that would be an offset by this pricing you’re getting?
Ward Nye: I don’t think there’s going to be anything like energy was last year. I mean, to Jim’s points, when he was going through his commentary. I mean overall energy was such a massive headwind to the enterprise. And obviously, cement is a big consumer of energy. I mean, keep in mind $178 million headwind for the year in energy. Now, in fairness, diesel was about half of that, but again, if you’re looking at our business in cement or if you’re looking at our business even in Mag Specialties, what you’ll know is portions of that energy was just up a lot more. I mean, natural gas, depending on the market last year was up around 30%. Coke in some markets was up as much as 116% and coal was up nearly 20%. So to your point, do we think we’ll see that degree of lapping again, increases in energy? No, I doubt. But I think Jim has a little bit more. If you’d like to offer you two.
Jim Nickolas: Yes. Two points, Keith. One, maintenance repairs will be higher in ’23 for the full year than in ’22 for cement. Despite that, however, gross margin percentage, I expect will be higher in ’23 than ’22.
Operator: Thank you. Our next question comes from the line of Phil Ng with Jefferies. Your line is now open.
Phil Ng: Hi, guys, can you hear me now?
Ward Nye: Welcome back. We missed you, Phil.
Phil Ng: Thank you. I mean a day of technology fun for both us. So I apologize for that.
Ward Nye: You’re telling you know about the fly, Phil.
