Operator: Our next question comes from John Roberts of Credit Suisse. Please go ahead, John.
John Roberts: Good morning, Tim, Vince, and John. I just wanted to ask a question about auto refinish. You won 2,000 new body shops in 2022. Was that concentrated anywhere regionally? Or was there something else common to those shops that switched? And when you talk about 15% higher productivity, is that relative to the prior supplier to those shops? Or how are you defining that since you’re leading competitors also talking about having productivity higher than the competition?
Tim Knavish: Yes. Thanks, John. To your first question, our net wins on body shops are positive in all the major regions, U.S., Canada, Europe, Australia, New Zealand and China. It’s just proportion to our business that the vast majority of those are in the U.S. and Europe. Relative to the whole productivity question, the way we look at it is change is only as strong as its weakest link. And so every link on the refinish body shop throughput has to be strong in order to really drive what’s most important to the body shop owner, and that’s what they call key to key time. From the time you take the vehicle owner’s keys until the time you hand those keys back to the vehicle owner. That is the one and only metric that that is present.
So if you are incrementally faster in one of those steps, but slower in several others such that your key to key time is 15% lower, than you’re simply not as productive in the eyes of that — in that body shop over. And so we focus on that end-to-end with things like the digitized color match, our linked digital system that really encompasses the whole body shop, the visualizer, optimized mixing to improve speed, eliminate waste. And another thing that’s really important to the body shop owners right now that PPG’s value proposition delivers and some of our competitors don’t, is you’re actually simplifying some of those steps with things like moon walk and the visualizer so that the constrained flavor of the professional painter doesn’t always have to be the one to do that.
You open it up to other labor that can do that and that adds additional productivity of the body shops. So again, the most important thing is that key to key time, and that’s where we have the 15% advantage.
Operator: Our next question comes from P.J. Juvekar with Citigroup. Please go ahead, P.J.
P.J. Juvekar: Yes, good morning. Tim, clearly, the housing market is slowing down, whether you look at new homes or existing home sales. Have you seen a slowdown in the contractor business? The contractor business was robust. Last couple of summers, they had a huge backlog that they were working from COVID. As that backlog is worked down, do you expect some slowing in the contractor business?
Tim Knavish: Yes, P.J. Yes, we have already seen a slowdown in contractors that are primarily focused on new housing. That’s a brutal reality that we all have to face. But again, that’s a small portion of our business. Our backlogs for where we’re strong, which is commercial and maintenance, literally have moved only incrementally, 13 weeks average backlog in Q3 to 12 weeks average backlog in Q4. So, that’s what’s been the margin of error of four survey. So that’s holding up much better than the new build. I believe part of that, if you think about a lot of commercial work and maintenance work and light industrial work, a lot of that work was near zero during COVID, while the DIY and res repaint was offsetting it. So there’s still a lot of pent-up demand there. So I don’t — as I said earlier, the total volume is still going to be incrementally down. So I don’t want to oversell that. But that’s why some of our Pro business is holding up better.
Operator: Our next question comes from Michael Leithead of Barclays. Please go ahead, Michael.
