Brian Schopfer: Neutral is what’s in the guide. So that’s upside if we can do better and we continue to be very aggressive in the market on pricing. But as we saw this year, it takes a bit of time to kind of flow into the P&L. I will just note one more time, Joe, for you, we did end the fourth quarter at 5%, which is what we had expected going back a couple of quarters. So the team is executing well on the pricing. It just takes some time to flow through the P&L.
Joe Ritchie: Yeah. That makes sense. Last one for me. Tom, you mentioned on improving operating environment in Industrial. Can you just elaborate on what you are seeing and how it’s impacting your business? It sounds like supply chain has gotten at least modestly better, just wanted to get some thoughts there?
Tom Logan: Yeah. So few things, Joe. Firstly, to your point, yeah, supply chain dynamics in our view are never going to be what they were pre-pandemic, but they certainly seem to be improving and the number of kind of episodic issues that we have seems to be on the decline overall. But more broadly, if we look at the drivers of performance there, again a lot of it is driven by the kind of order intake experience we had last year and the health of the market segments that we are selling into. Our business model hasn’t changed and if you look at the fall through at the margin level to the bottomline, that is inarguably the most important dynamic in terms of overall operating performance for the business. So to the degree that we can be price cost neutral or better, to the degree that we can be disciplined about factory overhead costs and OpEx, then volumetric increases are going to be reflected in strong performance overall.
So it really is a function of more than anything else just executing well. And I kind of referred to the fact that, it’s important to remember last year was our public debut and so it was very consuming to become a public company to deal with all of the related issues, as — again in our debut year. But on top of that, given the fact that we were really creating coherence within our Medical group, it consumed an enormous amount of my time to focus on Medical and specifically on our radiation therapy business overall. With the hiring of Mike Rossi, President of the Medical Group, it gives me a more normalized bandwidth to be able to support and assist and focus on execution across the entire enterprise and I expect that will have some beneficial impact on our operating performance for the year.
Joe Ritchie: Great to hear. Thank you.
Operator: Our next question comes from Chris Moore with CJS Securities. Please go ahead.
Chris Moore: Hey. Good morning, guys. Thanks for taking a couple of questions. So maybe just back to price for a second, so price cost basically neutral, if you are looking at 4% to 7% organic growth. So from a price volume standpoint, most of the — most of that growth is in price, is that fair?
Tom Logan: Yeah. It’s — I mean just because of our ramps and it’s actually pretty balanced when you do the math out on price volume. So I think that’s how we are thinking about it.
Chris Moore: Got it. Tom, you called out SMR here and
Tom Logan: But.
Chris Moore: Go ahead.
Tom Logan: Chris, it’s — there is a slide, I think, it’s 16, that actually shows you the range between and how we split it between volume and price, you would see it’s pretty balanced, little more volume on the high end of the range, balanced at the low end.
Chris Moore: Perfect. Thank you. Called that SMR as potential big opportunity, just curious from a sales cycle and development cycle perspective is that meaningfully different than what you see on the traditional utility?
Tom Logan: It is in the sense that there are lot of new players and there is a substantial amount of government funding that’s coming into the space. And just to put it into context, why we are specifically excited about the SMR market? Understand, that firstly, if you look at total installed nuclear capacity globally, today there are roughly 450 operating utility scale nuclear power plants with about 380 gigawatts or 390 gigawatts of total capacity. If you look at North America alone and look at the decommissioning coal — profile for coal plants, there you have about 450 gigawatts of scheduled decommissioning over the next 15 years or so, that is the core target market for the SMR space. And candidly, I think, as we have noted on prior calls, this is a market that’s moving faster than previously it had.
There seems to be an acceleration of efforts, more tangible efforts and as noted in the prepared remarks, we have booked backlog on several of these projects, but the key right now again as the strategic engagement with the major sponsors here to work hard and try and get our industry leading solutions specked into these power plants.
Chris Moore: Okay. Got it. Very helpful. Mostly others have been covered. I will leave it there. I appreciate it guys.
Tom Logan: Chris, thank you.
Operator: There are no further questions at this time. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a nice day.
