Joe Giordano: Okay, that makes sense. And if I could just sneak in one last one on just the volume. So I mean your Pool volumes this quarter came in better than what we were thinking about when we spoke three months ago. Commentary from your largest distributor calls for like fourth quarter, their inventory levels in dollars are going to go up from the third quarter. So like, that kind of implies growth for you guys. If they do normal seasonality, implies growth in Pool of like high-single-digits. If they do less, maybe it’s more modest growth. But how would you kind of think about where growth can look like for Pool in the fourth quarter?
John Stauch: Well, I think we’re a piece of their puzzle. So we’ll start there.
Joe Giordano: Yeah.
John Stauch: And I think we are indicating that we do think sequentially our revenue numbers do go up from Q3. And then it’s really a discussion of how much more. And I really think that we do our best to predict that business with reasonable accuracy and getting it exactly to the dollar is improbable. And so I would say, we got really close in Q3 and I think we feel really good about our Q4 revenue estimate at this moment.
Joe Giordano: Thanks guys.
John Stauch: Thank you.
Operator: Our next question will come from Scott Graham with Seaport Research. You may now go ahead.
Scott Graham: Good morning, John, Bob, Shelly. How are you?
John Stauch: Morning, how are you?
Shelly Hubbard: Morning.
Bob Fishman: Hi, Scott.
Scott Graham: Good. Thank you. So the productivity jump was obviously meaningful. How much of that 2.8% maybe was some help from a better supply chain, sort of external?
John Stauch: Well, I think a lot is coming from that, Scott. I mean, I think we’re working more seamlessly with our supply chain today. Obviously, we’ve caught up on most of the demand to them and aligned with our channels. And so we are benefiting substantially from a lot of more seamless deliveries across the entire supply chain today.
Scott Graham: Okay. Back on to Pool, sorry, but historically, these numbers kind of shook out as 40, 30, 30 new remodel and then sort of the maintenance of the aftermarket. As we look at a weak 2023, kind of, what does that — where do those numbers kind of end the year at? Is that an estimate you can make?
John Stauch: Yeah. I think they’re generally in that ballpark. And we could argue, weak — I mean I think the overall builds in 2023 are going to definitely be at pre-pandemic levels but generally in line with what we had seen prior to the pandemic. So I think we’re in a more normalized area. Scott, I think the learning is, across the channel is there is high-end pools there is low-to-mid market pools and the interest rates are definitely impacting the more low-to-mid and the high-ends are continuing to be built. So I think that we’ll all probably start to refine the numbers to try to break it out by the demographics that its serving, but I think generally, the model is still working.
Scott Graham: Okay, thank you, John. Last one, you indicated builds, you are assuming kind of flattish. We’re modeling flattish and then aftermarket up. Were you referring to the fourth quarter or a period of time longer than that?
John Stauch: No, we’re talking about — if we think about heading into the 2024 pool season, that’s generally what we’re — our current expectations would likely suggest.
Scott Graham: Okay. So your mid-single-digit plus long-term thinking on Pool, it’s not going to be that next year, based on that.
John Stauch: We’ll give that in January, Scott. I’d remind you that there is an inventory correction next year, which creates some benefits and then there’s the overall general market conditions that we are addressing. But when we get to giving our Q4 earnings, we’ll update and share with our 2024 guide.
Scott Graham: All right, thank you. Had to try.
John Stauch: Yeah, you tried. Thank you.
Operator: Our next question will come from Deane Dray with RBC Capital. You may now go ahead.
Jeff Reive: Good morning, this is Jeff Reive on for Dean. Maybe my first question, you talked about your innovation, the 25 new products this quarter, 100 for the year, over the last 12 months. Is there any internal metric you target? Like, are you targeting new product vitality? And what are the typical margin differential on new products?
John Stauch: Yeah. I mean we do. We have all those. Vitality is obviously the right product line by product line. When we create new valuable products at the market or that our customers want, we tend to see margin lift from those new products, not usually at its initial stage, it usually takes probably a year or two for that to recognize. But that is the model we work to.
Jeff Reive: All right. So nothing to quantify. And then maybe on IFT, you kind of mentioned the Build America, Buy America provision in infrastructure spending. Are there any products that you offer where you are on — or virtually 100% American-made where your competitors aren’t? And is that a meaningful piece of the business?
John Stauch: Yeah, we have today with the Born in America where a lot of our historic brands 120, 130 years old are — have originated in the United States. They’ve been specified here for long periods of time and they’re manufactured here. And so our employees are really proud of those brands. Our customers are really proud of those brands and they tend to give us the ability to have at least a fair opportunity to win those jobs when we go to market.
Jeff Reive: Got it. Thanks.
John Stauch: Thank you.
Operator: Our next question will come from Nathan Jones with Stifel. You may now go ahead.
Nathan Jones: Good morning, everyone.
John Stauch: Good morning.
Bob Fishman: Hi, Nathan.
Nathan Jones: Couple of questions on Water Solutions. I think first one is probably on Manitowoc Ice. I think you guys have shipped out of backlog this year, you had maybe a couple of large projects that might not repeat next year. You talked about mid-single-digit plus. But should we be thinking of that long-term mid-single-digit plus as being of a low-end number than what you’ve done in 2023? Or do you think you can actually grow from the number that you’re putting up in 2023 as we go into 2024?
