Tom McCormick: It’s not an inhibitor as long as we are successful. I mean we are not – it’s just not about – it’s not about necessarily about just being the highest paying contractor out there because we are not going to be. It’s the total package. It’s compensation. It’s benefits, It’s career development. It is – well then focusing on the retention of the people that you have, what we are really focused on doing is providing equity in the company and opportunities to buy equity in the company. It’s all of those things. And I think what we are starting to see is success breeds success and people will like working for companies that have good cultures that care about their people, that help develop them and lay out career paths and pay and have competitive benefits and they are winning work and performing well on the projects.
And I think that’s where we are starting to see. We saw that in our industrial group over the last couple of years as they have improved their performance and their margins, getting people a lot easier and retaining them as much easier now. And we are seeing that with power deliveries. We brought in this leadership talent that people are excited about being part of that business, and they want to see where these guys can take it. And I think – so all these other things combined, I think will help us. But it doesn’t take away from the fact that it’s a tough market. Us and our competitors are always after good talent.
Brent Thielman: Understood. Thank you.
Operator: Our final question comes from the line of Julio Romero with Sidoti & Company. Your line is open.
Julio Romero: Hey. Good morning. How much were renewable sales in the quarter? And what do you guys expect for the fourth quarter?
Ken Dodgen: Let’s see. Renewables sales in the quarter were about $325 million. For the fourth quarter, it could be as much as – yes, for the fourth quarter it’s probably going to be – if they close everything that they are targeting, it could be over $0.5 billion, maybe even as much as $600 million.
Julio Romero: Okay. Great. And then, hey Tom, you listed a few challenges within the renewables area, but you also talked about how you are well positioned, aligned yourself with customers to kind of be more resilient going forward. Maybe looking beyond 2024, what’s the biggest potential concern that you are just keeping your eye on out of the factors that you mentioned?
Tom McCormick: Anything that affects supply chain, I mean I mentioned in my comments earlier that transmission, anything that’s associated with transmission interconnects what are going to be the impacts of what’s going on in the Ukraine because that has definitely impacted the supply of transformers and some of that gear breakers and other components, it’s how long is that going to last. I know some U.S. manufacturing is picking up, and I think we are finding other sources and we are actually pre-buying trying to get ahead of that. But if supply of transformers and breakers goes to 100 weeks, that pushes jobs unless the clients have already secured supply. So, that definitely is a concern in like ‘24 and ‘25, if that’s not solved for at least actions are taken to deal with it.
Julio Romero: Okay. That’s helpful there. And then just the customers, you mentioned you aligned yourself with on the renewable side and the work you are going after that on a relative basis, that seems less affected by higher interest rates, at least for the moment.
Tom McCormick: Yes. We are not hearing our customers talk about that at all.
Julio Romero: Okay. Very good. Thanks very much.
Operator: We would like to take another question from Lee with CJS Securities. Lee, your line is open.
Lee Jagoda: Hey. Just following up on Adam’s question and maybe piggybacking on Julio. Tom, I think you mentioned 20% to 30% to 40% growth in solar next year. Can you just give us a baseline for 2023 that we are working off of in that business?
Tom McCormick: 1.35.
Ken Dodgen: 13.5 is where we expect to end the year.
Lee Jagoda: Thanks.
Operator: I would now like to turn the call back over to Tom McCormick.
Tom McCormick: Thank you for your questions and for participating in the call this morning. We have reached some important milestones as a company so far this year and are optimistic about the future. But we know there is still work to be done. We have to continuously build on our strong company culture to attract top talent, improve productivity in our operations and provide quality service to our customers in order to become the company we believe we can be. I am excited to be in the position to help lead a great team towards these goals. Thank you again for your time and interest in Primoris.
Operator: Ladies and gentlemen, that ends today’s conference. You may now disconnect. Thank you for your time.
