In some environment, some customers may want more or less and increase coming through, a base rate type of change, some may want more exposure to that variable component of pricing that would be the fuel surcharge. And there’s ways to increase yields by driving productivity with customers as well, where we can obtain the same objective by just looking at the operational factors underneath, and having all of our systems tied into our cost model allows us to have those types of conversations with our customers as well. Ultimately, it’s just about driving customer-specific profitability improvement and work in our continuous improvement cycle so that we can continue to purchase real estate and expand our network. So, customers have got that to leverage within their own supply chains.
We’re effectively buying capacity on behalf of our customers. So, I think we got to just continue to execute on that front. And I think that we’ve shown in terms of going through prior cycles that we’ll be able to do so.
Ravi Shanker: Understood, thanks, guys.
Operator: Our next question comes from Ken Hoexter with Bank of America. Please go ahead.
Ken Hoexter: Great, good morning, and again congrats, Greg, on your tenure, and Marty, on the new role. Just a quick clarification, I guess, on that spring pickup you’ve talked a bit about. Is that just comp based? Or is there a commentary you’re hearing from customer comments or just I guess on showing up inventories? I just want to understand why the — I guess, the confidence in that given the market and then my question is on depreciation. You know the depreciation is going to be higher. Last year, you targeted, I think it was $485 million on equipment at the beginning of this year — at the beginning of the year. This year, you’re doing $400 million on equipment. Is that because the delivery schedule was slower? Is — what’s your view on getting that equipment? And does that still allow you to stay at that 20%, 25% excess capacity that you typically target? Thanks.
Greg Gantt: Yes, Ken, this is Greg. I think so on the — I’ll take your revenue question first, but we typically always pick up in the spring. So, certainly, we’re hopeful that we get back into a more normal cycle than what we’ve certainly been in really since COVID. We’ve kind of been off cycle, if you will, if that makes sense. And the normal numbers and sequentials that we compare with all over the years, they’re just been different in the last couple of years. So, certainly, getting back to a normal cycle would be one reason we are somewhat hopeful. Some of the things that we’ve seen, heard and read, inventories are starting to get low compared to where they were back, say, a year or six months ago. So, I think there are some things that lead us to believe that we could be coming out of this thing, plus we’ve been through many, many cycles over the years.
And typically, they’re a year, 16 months, so we kind of think that that’s what we’ve been in this one. So, yes, we’re hopeful, got our fingers crossed that we will come out of this thing as we get into the spring and later on in the second quarter. As far as the equipment, yes, it’s been kind of funky. The deliveries that we — cycle that we’ve been on this time. We certainly didn’t get everything back last year like we typically would. Typically, we would have all of our orders in the early fall. We had everything in place that wasn’t the case this year. We’re actually still taking some equipment that we should have gotten back last year. So, it’s been a little different. So, we’ll just have to see how the business develops, and I think that’s going to determine where that $400 million that we talked about number, where that goes this year.
