TimKnavish: Yes, sure, Lexi. So in PPG Comex in Mexico, we said in May, 1 of our key initiatives was to continue our robust performance and growth in the Deco space, and the team did that another record year, double-digit sales up on the year, but also to introduce other parts of our portfolio to that strong concessionaire network. And we’ve done that. Protective Coatings were up, let’s call it, very high single-digits. Adding again adding that fourth letter, but traffic sales were up double-digit. And I just returned, we just had all of our concessionaires together this past weekend and I was down there meeting with them, and they’re very bullish on their ability to sell not only Deco, but these protective traffic, powder, light industrial coatings.
So we’re off and running. We just literally on — I believe it was Monday of this week, introduced powder brands and refinish brands that are specific and dedicated and exclusive to the concessionaire network and that got a very good reception. Your other question on the initiatives that we kicked off last year as part of our enterprise growth strategy, I’d say, I am very pleased with the first year of execution of that enterprise growth strategy. As we said in the opening remarks, those initiatives, just in the first year, generated about $150 million of incremental sales. And some of those initiatives are longer-term initiatives than others and still in development. So between powder films, the Mexico opportunity that we just talked about, EVs up 20% content per vehicle.
They’re all up and running and I’m very pleased with the progress that we have seen so far.
Vince Morales: And if I could just add a little broader commentary, we talked in May about being bullish on the Mexico economy. I think that has come through in space for us in the region. We continue to see reshoring of industrial activity into Mexico. We’ll support that with our industrial companies. We’ll support that certainly with our Comex brand. In addition, one of the things we haven’t Tim alluded to it on the opening comments, but we haven’t talked about in the Q&A, a second economy for us that’s well outpacing most other regional economies is India. And we’ve got a good position in India as well, and that’s supported by I’ll call it reshoring into India or shoring in India that is just starting.
Operator: Our next question comes from Laurent Favre with BNP Paribas. Your line is open. Please go ahead.
Laurent Favre: Yes, good morning. In the presentation, in the list of watch out, you’ve mentioned the Red Sea situation. And Tim, I was wondering if you could talk about, I guess, how you’re looking at the risks there in terms of ability to source impacts on costs. Have you seen anything on that side yet? And on the flip side, on the positive or potential positive, there’s such a thing? Could it be a reason for a bit of a restocking along the chain in your customers? Or is it just not big enough of the deal right now? Thank you.
TimKnavish: Yes. Laurent, it’s really not been anything near material to us to this point. First of all, from our direct products, paint and coatings don’t do very well shipping around the world. We’re mostly local for local. So minimal impact on our direct products. Our suppliers, we have — our suppliers have plenty of capacity. There’s plenty of inventory upstream of us. And our suppliers are seeing some delays but they’re accounting for that in their production planning and in their logistics planning. So we’re not expecting any impact to us there to the financial impact. We’ve seen a few minor small surcharges being implemented, but frankly, to this point, pretty insignificant. So the piece that we’re watching and the reason we listed it on that part of our slide, was we’re not certain of the impact on customers particularly if you think about European auto OEMs where they’ve got sourcing from around the world.
And if they’re missing any critical parts, it may impact production scheduling, we have seen none of that so far. That’s really the piece we’re watching more of a customer impact than on any internal impact. To your restocking, maybe I doubt that we’ll see any significant inventory build of paints and coatings as a result of this. I think it will be more a movement of inventories upstream of us and how our suppliers deal with deal with their own logistics planning. But again, the fact that they’re pretty long right now, we’re not expecting any issues.
Vince Morales: And Laurent, just to put numbers to it. Typically, the average delay to do to not going through the Red Sea about 10 to 12 days. So certainly, plan — we can plan for that on our raw material purchases.
TimKnavish: And Laurent, one more for me. We have nothing in the guide for the first quarter for this area
Operator: Our next question comes from Patrick Cunningham with Citigroup. Your line is open Please go ahead.
Patrick Cunningham: Hi. Good morning. Just on auto refinish. It seems like there’s maybe some normalization there. So I guess my first question is what’s causing lower collision claims in the U.S. Is there anything structural you can point to like balance of total vehicles trending upwards? And how should we think about the outlook for Refinish for the full year by region?
TimKnavish: Yes, I’ll take this one. Refinish had a good year, a record quarter, and that was off of tough comps. Yes, claims still down in the U.S., still down versus 2019. But we’re able to achieve our results even at that level. And what I’ll tell you is body shop activity is up and strong. And the only thing — most of our body shop customers have backlogs, driven mostly by labor availability. So even though claims are down and we watch that closely, we’re still performing. I would also add, largely because of our digital tools, we had a really good share gain year and even the revenue that we get from those digital tools was up more than 100% year-over-year. So, we feel good about that moving into this year. We’ve got a good order book as we sit here today.
