Kristen Actis-Grande: Dave, the only thing I’d add to that is, we contemplated that process when we set the framework or the guidance ranges. I alluded to some initiatives coming online in the second half. They’re going to change the sequencing of gross margin throughout the year. That would be one of those, but attacking a lot of different things across price, cost, and mix as we think about the second half in particular, but all kind of within that original operating margin framework of .
David Manthey: That’s great. Thank you.
Erik Gershwind: Thanks.
Operator: Our next question today will come from Paul with William Blair. Please go ahead.
Unidentified Analyst: Hi, good morning and thanks for taking my questions.
Kristen Actis-Grande: Good morning.
Erik Gershwind: Hi, Paul.
Unidentified Analyst: So first question from me, Erik, reflecting on the supply chain environment and the disruptions we’ve seen over the last couple of years, is there a way you can qualify for us how you think that the tight supply chain that we saw in your share gains over the last couple of years? Is there a way to parse-out how big of an impact your internal initiatives had in taking share?
Erik Gershwind: Paul, what I would say, look, qualitatively, what I would say is the past three years created a fairly unique opportunity for large well-capitalized distributors that were able to €“ I was talking earlier about getting product on the shelf. In a tight supply chain environment, a couple of things happen. Number one, obviously scarcity of products. So, having product becomes paramount. And then, the second thing is obviously tight supply chain means inflation. And I think the successful distributors, those that fared well through this crazy period were able to stay ahead of that, and maintain or improve margins through what was a historic time. And I feel good about our performance on both of those fronts. I think as we move forward and things normalize if the question is, okay, does that opportunity €“ the share capture opportunity go away, our view on it is that like our North Star has become generating productivity for our customers because particularly €“ almost any environment you can think of, if their booming, if things get slow productivity.
And productivity could mean cost down or it could mean increasing manufacturing throughput to allow them to get more products into their customers’ hands faster, that is becoming paramount. And that’s where €“ if you listen to each of our five growth levers, I tried to get this point across they’re not just about increasing dollar volume. They’re intended to all serve a purpose and it’s all around positioning MSC as a partner to our customers to generate productivity. That’s our North Star for the next several years.
Unidentified Analyst: Got it. That’s very helpful. I appreciate that. The other question for me and I appreciate the color you guys gave on the macro environment, but are you seeing here in early January any bifurcation in the order rates between some of your larger customers and the small customers and maybe if not even on order rates and how they’re talking about the year ahead, how would you characterize your conversations with each?
Kristen Actis-Grande: Hey Paul, I’ll take that one. So, nothing different than what we’ve been experiencing for the last few quarters. We’re not seeing any deviations there and we do that is kind of one of the things we tend to watch for any early leading indicators. So, nothing notable to report there. As Erik mentioned, kind of the macro sentiment, pretty consistent. We’re looking more for pockets per end markets at this point, but generally still feeling good about the year, solid about our expectations and within that 5% to 9% ADS guidance range.
Unidentified Analyst: Got it. Appreciate the help. Thank you.
Kristen Actis-Grande: You’re welcome.
Erik Gershwind: Thanks, Paul.
Operator: And our next question today will come from Patrick Baumann of J.P. Morgan. Please go ahead.
Patrick Baumann: Hi, good morning. Thanks for taking my question.
Erik Gershwind : Hey Patrick.
