Bruce Chan: Thanks, and good morning, everyone. Jack, congrats and Adam, I didn’t take you for a swift, but maybe if I can borrow a line from her as well, just a question about the tortured pricing department here. We’ve heard from a couple of shippers that there’s one last push going on for lower rates, especially some of those that may be negotiated in the first quarter of ’23 and kind of felt like they missed a little bit of the ride there. Have you seen any of that? And specifically, have you seen any pull forward in bid activity early in the year? Any extra color on the pricing trends for this year, uncertainly helpful.’
Adam Satterfield: Yes. I’ve got a teenage daughter, so I can’t help but here are certain types of music in the house. But on the pricing front, we’ve not really seen any material change in activity or bid activity. And for us, it’s pretty consistent through the year in terms of how bids come in. And so it’s pretty much just business as usual there. And again, like we said earlier, continuing to get the same types of increases on a core basis that we’ve seen in the past.
Bruce Chan: That’s helpful. Thank you.
Operator: The next question comes from Ken Hoexter of Bank of America. Please go ahead.
Adam Roszkowski: Thanks. This is Adam Roszkowski on for Ken Hoexter, the team and Jack, I hope the other side is treating you well. So why don’t you get back to the excess capacity comment you noted about 30%. Could you remind us of the current capacity expansion plan maybe in the near term or over the next couple of years? And then average headcount was up slightly sequentially. How should we think about the headcount run rate for the balance of the year? And maybe could this service a potential cost lever? Thanks.
Adam Satterfield: Yes. From a headcount standpoint, I mentioned that we’ve added about 500 people since September of last year. So I feel like we’re in good shape there. The other thing is that — we are running our truck driving schools. And so some of the people that we pulled from a platform position and put them into a truck in the fall to respond to that sequential acceleration in business, we’ve been able to backfill those platform roles with the hiring, but also have trained more drivers to have those employees and drivers and ready reserve, if you will, to respond to an increase in demand if it continues to accelerate from here. So it’s pretty much in balance right now with the change in full-time employees with shipments.
And that’s something that generally is balanced over the long term. But I feel like we try to get a little bit ahead of it, but we’re cautiously optimistic about and has been for the last quarter. So that was why we went ahead and tried to invest there in that employee growth, but we’ll continue to watch. And we’re a little bit ahead of it. We’ve got different levers that we can pull. If volumes are accelerating to where you don’t have to hire on a one-for-one basis with growth. But we’re in a good spot, maybe kind of flattish from here. But depending on we see further acceleration coming through, say, now to and anticipate through September, then that might require some further hiring. But no real immediate needs at this point to do anything in a material way.
I feel like our employee count is pretty well balanced with the volumes that we’re seeing. Maybe Marty will address the service center capacity.
Marty Freeman: Yes. From a capacity standpoint, we always try to maintain at least 25%. And with the 30 that we have now, some of that comes from what we started as a – enlarging some of our docs that we had experienced some tight door pressure in which we keep a door pressure report going on a monthly basis. But some of those things are finishing up from expansions in 2022, that’s the reason for the 30%. But we always try to keep excess capacity because we’re confident this economy is going to turn for us and if not this year, beginning in next year. So there’s nothing worse than getting an influx and promises from customers for additional business and not having enough capacity to handle it. So that’s why we try to keep that 25% to 30% at all times.
Adam Roszkowski: Thank you.
Operator: The next question comes from Stephanie Moore of Jefferies. Please go ahead.
Joe Hafling: Great. Good morning, everybody. This is Joe Hafling on for Stephanie. I hate to ask again on the capacity question, but you’ve mentioned a couple of times how you think that the strategy of the past would continue to work and the environment itself will become tight. But with sort of all the rest of the natural players essentially copying the whole Dominion playbook and trying to keep a 20% to 30% excess capacity figure themselves. How are you thinking about keeping incremental capacity or adding incremental capacity? And do you think that the industry overall today, with everybody trying to be like Old Dominion, does that lead to the industry just having excess capacity more than there ever was in the prior decade?
Marty Freeman: Yes. I think that at the end of the day, capacity is not what wins business. It allows you to achieve market share initiatives. So having capacity doesn’t necessarily mean that anyone is going to be able to grow it just gives the ability to grow. Service is ultimately what win share and relationships in this business as well. And I think that we’ve been able to strengthen our customer relationships over time, our sales and our pricing teams, the relationships that they formed with our customers, the consistency of our business practices, the consistency of our yield management practices as well. All that goes into forming strong bonds between us and our customers. And so we continue to look at ways that we can add further value to our customer supply chains.
