Michael McGaugh: Yes, there’s some opportunity to continue to drive procurement savings as we’ve standardized that department and we’ve had some gains there. So on the raw material side, we expect to continue to have some runway. We also on SG&A continued rationalization of SG&A and cost out to be sure we have the right size of structure given the demand that we face in the short to medium-term, so some SG&A savings. Then ultimately, there’s some additional cost savings as we evaluate the opportunity to consolidate manufacturing facilities. As I’ve mentioned before, the advantages in some of our businesses we have actually quite an extensive grid in production locations but we brought in a lot of training capability on sales and operations planning.
We’re scheduling and optimizing and running our plants better. We actually have more capacity, I talk about the hidden factory. What that’s allowing us to do is to keep our output and capacity flat but actually combine select assets and footprint to take cost out there. So there’s probably going to be some additional cost on asset consolidation without meaningfully impacting our capacity. We’re really sensitive to that; I mean we believe all these markets will turn. We’re seeing some green shoots in select end markets and so we want to be sure that we don’t throttle down our capacity too much and overreact because we believe we’ve got great products, we have great brands. We have leading positions in all of our niche end markets and so we want to be sure that we’re ready to go when these things turn back.
Grant, any additional points?
Grant Fitz: And I think you covered it well. One thing I would just add is, from my side coming in new to Myers, certainly one of the things that really attracted me is the Myers business system. And I think embedded in that is just this whole culture of continuous improvement and driving out waste in the organization and that resonates very well with just kind of the background that I have of really strong execution on initiatives. And so I would say that although we have certain ones we’re working on, I would see us continuing to work those from new initiatives and opportunities on an ongoing basis, it’s just part of our standard DNA for the company.
Operator: Our next question comes from Steve Barger of KeyCorp [ph].
Unidentified Analyst: This is actually Christian Dylan [ph] on for Steve Barger. Can you just talk about the contribution from — good morning. Can you just talk about the contribution from volume and price in the quarter? I know you’ve had a couple of price increases this year and last year, with the raws coming down a bit despite labor and other costs staying elevated, do you see more price increases in the near future?
Michael McGaugh: So on the distribution side, our product cost rose. Now we capture some of that with price in select markets and in select products. We probably would need to go after and hit it again on the distribution side. And then in select — some of our niche products where we have the need and have the ability to price our products for the value they create or to price our products for the high service levels we provide. As we have that opportunity for sure, that’s an area of focus that I brought to the company is a more aggressive approach to raising price. And so yes, the increases are on the table. We’re trying to thread the needle whilst we manage volume.
Unidentified Analyst: And then last quarter, you talked about new business wins. Can you just elaborate on those business plans a little bit? What part of the business were those in? And is that predominantly new customers or a larger wallet share of your existing customer base?
Michael McGaugh: Yes and so what we’ll do is we’ll kind of tag team this year. I’ll address it from my perspective but I also would like Grant to speak to it again, just given — he has fresh set of eyes here. On the distribution side, that’s one that’s really compelling. In our space, we’re the largest by a factor of 3 or 4 and our ability to serve, given our warehouse footprint post Mohawk is, it’s very good, it exceeds our competitors. And so what we’re finding is that the customer base for tire service centers consolidates, a lot of independents are being acquired by some of the nationwide chains. Those nationwide chains want to deal with a supplier who can match their needs from a supply standpoint. Myers is in a very good position with that.
So we actually just received confirmation in the tailwind — first quarter moving into second quarter that we won one of the largest tire supply stores, their nationwide business, given our supply capabilities, that’s ramping. It’s going to ramp through the balance of this year because of the complexity of it. But that last mile in providing all the tire service components, the TPMS sensors, the patches, the valves and even some of the equipment that we provide in the way that we can do it and the service levels we have, it’s valuable to these tire service centers. And so we won a piece of business there we’re excited about. And I think that that’s part of a trend, well, as I mentioned, over the next 2 to 3 years not only do you have EVs that are tuning up tires and they’re going to drive some business there.
