Jeff Lorberbaum: So, it takes — once you get the equipment running, you still have to align the sales with it, and it takes a while to get the — you can’t sell it before the equipment is up and running. So, it’s coming up now and the sales are coming up and we would expect to fill it up as we go through the year.
Timothy Wojs: Okay. Any feedback preliminarily from the channel or is it just kind of too early?
Jeff Lorberbaum: It’s too early to tell exactly. We have — we’re gaining commitments to fill it up and we think we’ll get it filled up as we go through the middle of the year.
Timothy Wojs: Okay. Very good. Thanks, everybody.
Jeff Lorberbaum: Thank you.
Operator: And our next question today comes from Keith Hughes at Truist. Please go ahead.
Keith Hughes: Thank you. Just a question more on the pace of business in North America. It’s a weak volume in the quarter. Is the remodel market here to be bottoming out right now? Is there a way you can tell where the pace of business is going here in the short term?
Jeff Lorberbaum: All we can do is get feedback. One is, we know our own volumes. We get feedback from our customers of how they see it. They’re all pretty optimistic at this point about next year getting better, but there’s no way to actually measure where the piece is and what’s going to change it other than the things that impacted our consumer sentiment seem to have bottomed. So that helps as people gets the higher prices on homes and things. There is people have been postponing it. So it really comes down to gaining confidence in the pieces and it’s not that much different than the other regions, if you want to know the truth. They’re all in similar places.
Keith Hughes: Okay. And then raw material, obviously, part of the quarter here. Jim will those numbers assuming input costs stay where they are now? Will those numbers continue to be a positive for you? And sort of how long — how many quarters until they fade away?
James Brunk: You’re right. They are they are starting to fade away, I anticipate that. Those continue to see lower energy and materials flow-through from a comparison standpoint, and at least through the first half of the year on a year-over-year basis in terms of raw material and energy, which kind of aligns with where price and mix are in that same time period.
Keith Hughes: So at a diminishing rate in the first and second quarter, is that a way to think about it?
James Brunk: Yes, because there is that much less to kind of flow out of the inventory through the P&L.
Keith Hughes: Okay. Thank you.
Operator: And our next question today comes from Michael Rehaut with JPMorgan. Please go ahead.
Andrew Azzi: Hi, guys. This is Andrew Azzi on for Mike. I appreciate you taking my question. Just one for me. As you think further out and all the initiatives you’ve been taking with cost actions and mix initiatives, all the things have been going on there, where do you think the margin perhaps in Flooring North America can get to maybe on a longer-term basis? And how does that compare to what we are seeing recently in the segment?
James Brunk: The margins in this segment are still low. As the plant utilization goes up, the stoppages of the plant, you’re going to get decreased costs, you’re going to get leverage on the SG&A, as it goes up as we are going to try to hold the SG&A barely flat and the volume goes up. So we will get leverage there and those things will expand the margins. And we think you’ll see continued margin growth as it occurs over the next few years.
Andrew Azzi: Thank you. And then maybe also actually, in these investments in sales resources and merchandising, is there any way to like quantify the magnitude of those initiatives? Or is that more of a longer-term horizon?
James Brunk: Part of the magnitude is in the — you can see it in the SG&A costs which relative to historical high we made conscious choices to maintain our sales organizations to continue investing in products, continue investing in merchandising in order to set us up for the long-term. So you can see it in the higher level of SG&A as a percent of sales, which will come down as the volume comes up.
Jeff Lorberbaum: And so as you see the pickup in the placement of samples and new materials in the marketplace and we strengthened in the — through the second half as consumer sentiment if it improves, then that will position ourselves, as we go through the end of the year and into next year.
Andrew Azzi: Thanks a lot, guys. Good luck on the next quarter.
Operator: And our next question today comes from Joe Ahlersmeyer with Deutsche Bank. Please go ahead.
