Mircea Dobre: Understood. My follow-up is on the refuse business. I appreciate the announcement that you had on Volterra orders. I am curious, as you’re looking at that particular customer, how you expect that EV demand to ramp up for them? And are there any other ones that are that are considering similar types of vehicles? Maybe you can comment a little bit how that impacts margin as well from a mix standpoint. Thanks.
John Pfeifer: Yes, we’re really excited about this Volterra electric refuse and recycling collection vehicle. We will start producing and selling production units by the end of this year, like imminently, like right now. And we’ll do a prudent ramp up of production in our plant in Murphysboro, Tennessee and we’ll be doing, of course, dozens and dozens of units next year, and we’ll continue to ramp it from there. But this product is not just an electric vehicle, it’s a fully integrated vehicle that drives an enormous amount of productivity benefits for our customer, benefits for the driver, making it easier, safer more productive for them at every single stop. So, there is a huge amount of interest in this vehicle. It’s almost a new category for the industry because it’s not a body on chassis, again, it’s a fully integrated, purpose-built vehicle, like we know how to do.
And we think this is a really strong driver of growth in margins consistently year-over-year, probably for the next ten years. It’s hard for me to say exactly what’s the adoption rate going to be, but we expect it’s going to be very good over a long period of time.
Operator: Our next question comes through line of Steve Volkmann with Jefferies. Please proceed with your question.
Steve Volkmann: Hi good morning guys. Maybe backing up a little bit big picture, I think, one of you sort of mentioned that supply chain has improved. Can you just characterize sort of where we are now? Are you able to get sort of full production through your plants now, or is there still some upside as supply chain normalizes?
John Pfeifer: Well, a great question, Steve, because we have definitely benefited through this year by improved supply chain conditions. But I will also say that supply chain is not back to normal. If you look at our on-time delivery, supplier on-time delivery rates right now, that’s one kind of high level metric. It’s kind of around 80%, typically we would expect it to be at least in the low 90s. So it’s improved a lot over the past year, but it’s not back to normal. So, I think one of the important things is we’ve done an enormous amount of work in re-engineering, in resourcing, dual sourcing, using analytics and digitizing the supply chain inputs so we know where problems are going to be before they disrupt our plants.
I think all of that is also paying a lot of dividends to us. It has been most evident in our Access business to date. Our Vocational business has more complexity and longer bills of material. They have made improvements because of supply chain, no question about that. But we have a little bit more runway with, I think, the Vocational business on operating efficiency as supply chain continues to improve, but we expect it to continue to gradually improve going forward as it has over the past few quarters.
Steve Volkmann: Great. And that was kind of my follow-up. Maybe you answered it. But I was trying to figure out if there’s additional productivity upside as we get to whatever normal looks like at some point in the future. It sounds like you’re saying maybe more in Vocational than in Access?
John Pfeifer: That’s correct, yes. Yes, we’ve – we’ve seen a nice productivity benefit over the last few quarters at Access.
Steve Volkmann: Okay. Thank you guys.
Mike Pack: Thanks Steve.
Operator: Our next question comes from line of David Raso with Evercore. Please proceed with your question.
