Nick Gangestad: Yes. As I think about where we’re going with margins in our lifecycle services business in the next couple years, we expect that lifecycle services will be an outsize contributor to our margin expansion in the coming years. So we – one way we think about our margin expansion is through our core conversion of the 30% to 35% range. That would imply that lifecycle services is going to be helpful to that number. So if as I look over the next couple of years, I believe lifecycle services will be our highest margin expansion business segment of the three segments.
Blake Moret: Yes. And I would say that, the Sensia contribution, which is in lifecycle, we have seen improvement there and we expect to see continued improvement. So that’s a major component.
Noah Kaye: Thanks. And maybe just want to step back and ask a broader question about the demand environment. In past quarters, you and the industry and trade press and all sorts of folks have talked about the long runway here from IRA, IIJA shoring all these trends. And when you look at a quarter like this and see, some of the order dynamics and understand a lot of that’s just supply chain normalizing. I guess, when we step back, where do you think we kind of are in this wave of manufacturing investment and specifically in the United States?
Blake Moret: Yes. I think – I like looking at a vertical by vertical approach of this, because it breaks it down into, I’d say, more objective components EV and battery by any objective measure, there is continued strong investment as people are building out the capacity to build more electric vehicles. If you look at any city in the U.S., the number of electric vehicles remains low, all projections of that’s going to increase. And there’s nowhere near as much capacity needed to serve that demand, even with the announcements of new greenfields that have already been made. So we see that as a multi-year trend, semiconductor for national security reasons and to be able to reduce geopolitical risk impacting the semiconductors that make our world go.
We see that as a multi-year trend. And importantly, it’s not just the fabs, it’s all the supporting infrastructure that’s needed to make that stick as well. We talk about redundancy and resiliency in some of the other industries, food and beverage, life sciences with offerings not just the core automation, but the additional software and the services. I think these are multi-year trends. Workforce, again, with unemployment as low as it is, it’s just not possible to build the things that we need to preserve a standard of living without the technology augmenting a highly engaged workforce. Those two things are going to be required across a broad swath of the industries that we serve. So I think the outlook for automation remains good over a multi-year period.
We’re seeing the current impact of some of the ordering dynamics that we’ve talked a lot about on this call, but the fundamental outlook for automation and Rockwell’s ability to outperform, I think is very strong.
Aijana Zellner: Julianne, we’ll take one more question.
Operator: Thank you. Our last question will come from Nigel Coe from Wolfe Research. Please go ahead. Your line is open.
Nigel Coe: Aijana, thanks for fit me in here. Hi guys. Good morning. So yes, we’ve covered a lot of ground here. But just North America was 1% organic, so even if we factor in the $50 million to $100 million impact from the DC, it still seemed quite weak. And I’m sure there’s some inventory headwinds there, but are we seeing any push out in projects, some of the larger projects in North America?
