Mick Lucareli: Yes. I think, Neil, correct me if I’m wrong, our market data says pockets of the heating markets 20% or 30%. Yes, down Yes. We’re gaining share. We’re nowhere near that. But the magnitude of what you’re describing from really a lack of a cold snap or winter, it’s really impacted heating, both commercial and then you see a little bit decline to where people have heaters on a residential application in new home starts.
Neil Brinker: Yes. And I’d also add, Steve, that we also believe that there’s a distribution with a little overweight in terms of inventory and we’re going to start to see some of that work itself out. Certainly, colder temperatures would help that work it out faster. But again, at the rate where we see the industry and where we’re at, we know that we’re gaining market share in the heating side of the business.
Steve Ferazani: Great. When I think about — does that — if we end up with a really warm winter, does that carry over into stronger next year? Or is it weather dependent? Because if you didn’t replace stuff this year, although I guess new home starts will impact that as well, right?
Neil Brinker: As well as market capture as we continue to build out our distribution.
Mick Lucareli: Steve, we’ve had years where it’s that Neil said the channel. So the good and the bad of it will be is based on the winter if a lot of distributors stop restocking, they will sell remainder of the year, what they have on — and we’ll address that as we head into next heating season. But you’re right, some years, you enter a winter with a really lean inventory channel and that can help quite a bit regardless of actual weather.
Steve Ferazani: Got you. That’s helpful. And then on HTP, where are you with the — I believe it was Serbia, where you’ll be building the pump facility?
Neil Brinker: Yes, that’s correct. So we’re still working through the final negotiations there with the landholder. We’ve recently started to work the process to secure equipment — and as you know, Steve, we currently do manufacture there in Serbia and 2 plants. This is a third additional plant to continue to build out the capacity to support the European heat pump market.
Steve Ferazani: So it’d be fair to say that, that number could have been different based on the timing that your demand is overwhelming supply still. Is that fair?
Neil Brinker: So, we’re going to continue — yes, we’re continuing to win orders. Our order book is building quite healthy in regards to that very specific technology. Hence, the need for that additional factory we can I don’t have in front of me exactly which quarter it is next year that we’re back online but we will have production in that third facility.
Steve Ferazani: Okay. And then, just briefly touching on liquid cooled and air cooled. We know that automotive production is starting to pick up China is starting to reopen. I was a little bit surprised that you’ve reduced right now on those. And we know from hearing from ag and construction and supply chain constraints but the — the order books are still really strong in that area. So I’m just a little bit surprised on the modest reduction there.
Neil Brinker: Yes. Our commercial vehicle and off-highway order book is healthy. We’re confident in terms of the EDI and the messaging that we’re getting back. On the auto side of the business, it’s been more unpredictable, hence, where we hedged a little bit there on the automotive side.
Steve Ferazani: But you haven’t seen any major shift from where we were last quarter?
Neil Brinker: No.
