Operator: Our final question comes from Mike Roxland with Truist Securities.
Mike Roxland: Thanks, Eric and Jerry. Appreciate taking my questions. Just first one, anything from a cost perspective that affected Wood Products in the quarter? You did mention, obviously, the slow rate at Ola. So, I’m just wondering if there’s anything else, because the margins seem to be, on an EBITDDA basis, relatively pretty weak. And I’m just wondering if there’s anything outside of price and Ola that affected that margin.
Eric Cremers: Well, we’re in a relatively inflationary environment, Mike. So, I — that’s part of it. I can’t think of any one thing in particular that jumped out at us in the fourth quarter. Certainly, having Ola run at its run rate of 40 an hour would help leverage the cost structure, but I can’t think of anything else that really hurt us in the fourth quarter in particular.
Mike Roxland: Okay. Got it. Appreciate it, Eric. Just one last question on repair and remodel. You made the comment that home center customer takeaways remain strong, which is fairly well, which is — it’s great. But typically, if you look back historically, there’s been a few quarter lag between a decline in housing single-family starts and a decline in repair and remodel. So, any sense that you’re going — I understand that you’re seeing right now still strong takeaway, but if you look out couple of weeks, do you see that abating at all? Do you see takeaway from home centers and deals especially declining? And the reason I’m asking is, not only do you see it — not only does all typically lag starts, but the consumer itself has weakened.
You look at rising unemployment, you look at type of wage growth. And you also look at the fact that R&R has been relatively elevated in the last couple of years, particularly given work from home. So, I’m just trying to get a sense of whether — what you’re seeing right now with home center takeaway is something that you expect to persist and if there are signs of any cracks.
Eric Cremers: Yes. I don’t see any signs of any cracks. I do think you’re right. I do think it will slow. But by slowing, I still think I would point to growth even out to the fourth quarter. There’s the other side of the coin here, which is, yes, you’re right, during COVID, people sit around the house and do home repair projects. But the other side of it is, we were in a really high-priced lumber market environment over the past couple of years. And as those prices have come down, anybody that was deferring a home repair project, now is the time for them to pull the trigger on — because you’ve got low lumber prices. There’s a whole bunch of other issues that are out there that are favorable. You still got these really high levels of home equity.
You’ve got — there’s not much inventory for sale that’s out there. There’s — so people are stuck in their homes. And so, if you’re stuck in your home — yes, unemployment has ticked up, but it’s still a 3.5%. There’s still a lot of cash floating out there. So, there are so many other more favorable factors at play here that I don’t see it slowing down. Maybe at the end of the year, the rate of growth will slow, but I don’t see it turning negative, I’ll put it that way.
Mike Roxland: Thank you very much. Good luck in the quarter.
Eric Cremers: Thanks.
Jerry Richards: Thanks.
Operator: At this time, I’m showing there are no more questions. I’ll now turn the call back over to Jerry Richards.
Jerry Richards: All right. Thank you, Devon. And thank you, everybody, for your questions and your interest in PotlatchDeltic. That concludes our call.
