Stephen Volkmann: Maybe just to go back to this kind of gross margin outlook, it feels like there’s kind of cross currents for 2024. And Kristen, I think you said that, you’d see more of your line review benefits in 2024, I think you said that too Erik. But you’ll, obviously, see some headwinds, I guess, on price cost. I mean, can you give us a sense can gross margin be up in 2024 or how are you thinking about just broadly, we don’t need a number yet?
Ryan Merkel: Yes, sure. So you’re spot on in that we — because of the way we do the costing at some point, here the price cost benefit does flip to negative. We saw our cost peak in the second quarter, so we expect fiscal 2023 on price cost will be slightly positive to flat. So, the implication there would be that you do go negative in fiscal 2024. The category line reviews are a critical part of what we’re doing to kind of buffer that impact. Of course, as Erik elaborated on a little while ago here. Obviously, the more we can do on productivity generation in cost of goods sold, the more we can offset that impact. And it is hard to size right now too, Steve, just because we are seeing cost inflation continue to come in. So, we’ll give a more specific number in Q4, but it is — you do need a lot more productivity to come through for us to be able to increase margin on a year-over-year basis once that price cost curve inverts.
But we see a lot of opportunity in cost of goods sold and we’re going after a lot of things already. So we’ll be able to put a finer point to that in the fourth quarter.
Stephen Volkmann: Okay, great. That’s helpful. And then can you just go back to this quarter and give us a sense of what price and volume were?
Ryan Merkel: Sure. Yes, so price in the quarter contributed just under 500 basis points to growth, and then volume was just under 300 basis points of growth.
Stephen Volkmann: Okay. And then one final quick one from me. Kristen, you mentioned inventory maybe comes down this year, any order of magnitude?
Ryan Merkel: Yes. So yes, we do expect inventory to come down. Of course, a bit of dependency there on how growth plays out in the second half, but I’d say in the 10-ish range is probably realistic coming down about $10 million.
Stephen Volkmann: Okay. So pretty modest. All right. Thanks so much.
Operator: Thank you. And our next question today comes from Ryan Merkel with William Blair. Please go ahead.
Ryan Merkel: Hey, everyone. Good morning.
Ryan Merkel: Good morning, Ryan.
Erik Gershwind: Hey, Ryan.
Ryan Merkel: John, it’s been a great run. Thanks so much for all the help. Wish you all the best.
John Chironna: Thank you, Ryan.
Ryan Merkel: So my first question today is on the in-plant, which was up 20% and is now a little bit higher than 12% of sales. Can you just define what that is and how you execute to it? I imagine, there is MSC people on the plant floor more often? Just talk about how you do that and kind of what the outlook is?
