Erik Gershwind: Ryan, I’ll just — I’ll add a little color on top of just from the CEO’s perspective on this one. It’s really exciting for me to see Kristen and Martina together. And two things I’d highlight sort of zooming out from strict productivity. One is that, I mentioned this in the prepared remarks, more aspirational target setting, that I think the management team that’s in place now is more comfortable setting stretched targets, even if it means you missed, but thinking really big and sort of that fits into the continued improvement umbrella. The second one is a concept that I think Martina has brought with her, which is problem elimination versus problem solving MSC. We’ve had a really strong customer focused culture for a long time.
We jumped through hoops when there’s a problem. We solved it. But what we’re trying to do now with Martina and Kristen leading it is, stepping back and saying, wait a second, get the root cause, why is the problem happening in the first place. And don’t celebrate just solving it for the one customer. Get to root cause, justify why, then figure out how you eliminate it, so the problem doesn’t come up the next time. I think both of those are cultural shifts happening inside the company.
Ryan Merkel: I appreciate, Erik. Thanks so much.
Erik Gershwind: Thanks, Ryan.
Operator: And our next question today comes from Ken Newman with KeyBanc Capital Markets. Please go ahead.
Ken Newman: Hey. Good morning, guys.
Ryan Merkel: Good morning, Ken.
Erik Gershwind: Hi, Ken.
John Chironna: Hi, Ken.
Ken Newman: So a lot of my questions have already been asked in the call so far, but maybe I’ll start with — you talked about, Kristen, the capital allocation priorities, obviously, for organic growth as well as it looks like M&A. I know you guys have been pretty active on some tuck-in acquisitions, obviously, but with all the uncertainty in the banking sector, I’m just curious if you could talk a little bit about how difficult it is to maybe drive more M&A going forward?
Erik Gershwind: Ken, I’m happy to take this one. Look I think, Kristen did a nice job of laying out our priorities. Well, certainly there is — yes, there is uncertainty in the macro and the banking, et cetera, but we feel really good about our balance sheet. It’s strong now. We know that if things were to erode in the macro, the balance sheet only gets stronger, our cash generation picks up. So we feel like we can really be on our toes here. Now, that said, I think we’re going to stay very disciplined. So when it comes to M&A, I don’t think you’re going to see us — I never say never, but the bar would be really high to stray from the tuck-in approach we’ve been taking. So I don’t think you’re going to see us do anything really big and I don’t think you’re going to see us do anything outside of the core areas that we’ve already been highlighted.
But we do feel like the execution engine we have rolling now on these tuck-in acquisitions is greatly improved. Our confidence is growing. So it’s absolutely one of the priorities with respect to capital allocation. So we will stay, I would say, on our toes, but we’re going to also remain very disciplined with the three filters that we talk about, which is strategy, financial and culture.
Ken Newman: Got it. And then for my follow-up, I think there’s been a lot of good color on the demand outlook and I appreciate all the comments on both the customer mix and the modeling comments as well. I guess, just given some of the uncertainty that we’ve talked about in the prepared remarks, can we talk a little bit about what visibility you have in demand relative to the end markets that your customers are serving? Where are you seeing pockets of strength or maybe some incremental weakness relevant to your expectations?
