John Hall: Yes, yes. So if you were to look at us to be at a high level, like 2019 19%, 20%, call it 20% in the EBITDA margin and now we’re in the 14%, 15% range, we will get that 500 to 600 basis points in ’25. And it’s a combination of a lot of things. The biggest two things, as I’ve been saying repeatedly, is the brass foundry, the elimination to outsource and getting throughput levels back to — at our own foundries. Those are the 2 big movers. It really is. And that’s — we will end up with as long as the end markets hang together, we’ll be fine. I think the other thing I’d point out for everybody here is, I think the end markets are conducive to us to continue the growth but we’re probably going to have to look to the IIJA timing to carry us through what will likely be a temporary housing slump.
Bryan Blair: And that’s actually a perfect segue there, Scott. Any other color you can offer on IIJA impact to date, I assume minimal. More importantly, your confidence in there being a tangible impact looking to the latter part of ’23 into ’24, ’25. Just looking at SRF funding data and specifically the awarded funding and it’s somewhat underwhelming right now seem to do a lot of administrative issues at hand and a lot of work that remains just to coordinates the project funding before moving forward with a lot of this. Just curious your perspective on that. And then again, level of confidence or incremental confidence in this being a real catalyst going forward.
John Hall: Well, I think it will be a real catalyst going forward. I think you’re seeing whenever we have some of these government programs, you’re seeing the sausage-making process. There’s going to be all these new rule sets like give you an example like a fastener is a fastener have to be American made? Is it part of the American iron and steel? Or can we use imported fasteners? Well, how many fasteners are there being manufactured in the U.S. that meet the stainless steel, all these things. And so the EPA is working through all those rule sets to say what the exemptions are, what they’re not, what materials have to constitute the bulk of the cost with the labor content. So all those kind of sausage-making has been going on for the last 9 months.
And you saw some funds released to California, some of the bigger states. And as you said, it was a small piece of the $100-ish billion that we expected to see. And so I would say that the money is going to be set. I believe it will be a catalyst for ’24 and ’25 and beyond. But any project that got approved let’s say, today even, let’s say that today, none of those installs are going to happen in ’23 or even the early part of the ’24. By the time those jobs are engineered, those builds and materials are cut, the water system is in a position where the install could happen and the labor is available, these are multi-month projects, not to mention the size of the backlog in the specialty valve business or the large gate valve business. So I do think, yes, I’m very, very bullish as a result of the funding and we can see the need for where these dollars need to be spent in both the storm water, wastewater and drinking water investment opportunities.
Yes, we think it’s actually going to have a meaningful impact on the size of the served market for products that Mueller makes. No, I don’t see it happening in the next 3 quarters.
Operator: The next question is from Mike Halloran with Baird.
