Where do we want to incentivize our sales forces to focus their time? With higher mix comes higher commissions, particularly in our Construction Products and Performance Coatings Group where we still have a fair amount of commission-based sales. And then lastly are the very targeted initiatives that I’ve been talking about. We fully intend as part of MAP ’25 to take some of these margin savings and reinvest them in our P&L and growth initiatives. It’s paying off in a big way in Construction Products today, and I think as long as we can generate solid sales growth and earnings growth. And again, I would remind you we’re generating positive results as RPM and in most of our segments, other than SPG, on top of big mountains. You know, last year, Consumer sales were up 22.5%.
You know, RPM had an all-time record, Q1. I think our EBIT last year in Q2 was an all-time record, and it was up 36%. We expect to top that. And so as long as we have forward momentum on the sales line, and we’re experiencing both the improved cash conversion cycle and the margin enhancements that we expect, we will continue to reinvest in these growth initiatives. And then we have to have the discipline when, after a couple – two years or three years of investing, we’re not seeing the expected results to cut back in those areas. As I mentioned earlier, Jeff, as well, we are targeting very specifically what we call BIG, big ideas for growth investments separately in an SG&A sheet. And if the economy turns sour quickly, we have already lined up the specific SG&A cuts that we could make.
Jeff Zekauskas: Okay. And then maybe a follow-up.
Frank Sullivan: Yes, I would just comment on that. As long as we continue to outperform quarter-by-quarter versus some big year – you know, big pounds last year, I would expect for the balance of the year for you to see SG&A rise at a level higher than sales, while at the same time, you’ll see gross margin and EBIT margin expansion for the year. In the long run, SG&A should grow at or below the level of sales growth. That’s correct.
Jeff Zekauskas: Okay. Good. Right. And then for my follow-up, sort of a two-part follow-up. Should inventory levels change very much this year? You know you’re kind of flat sequentially, but raw materials are down and demand is sort of soft. And then in Construction, I think you talk about mid-single-digit growth for the second quarter, but you grew organically around 10 in the first quarter. And I get it that, you know, the price comparisons will be a little bit harder. But, you know, what accounts for the step down in Construction growth? And, you know, will inventories change very much from where we are?
Rusty Gordon: Yes, on the inventory side, Jeff, as you know, we have MAP objectives to reduce working capital, and inventory is a major piece of that. You’ve seen progress this year. I think what might be a bit different as we go forward for RPM is traditionally, you know, in the late time, we would build up safety stocks for the big spring orders. And I think thanks to a lot of our MAP improvements, you will not see that as pronounced going forward for RPM because we’ll be able to respond better to typical higher seasonal demand. So that’s your answer on inventory.
Frank Sullivan: Yes. And in general, this year, I would expect a 300 basis point, maybe more improvement in working capital as a percent of sales. And you’re seeing that. You know, we had an all-time record cash flow in Q4, all-time record cash flow in Q1. And inventory improvement has been a meaningful part and working capital improvement has been a meaningful part of that record cash flow generation along with margin expansion. Thank you.
