And a big part of that is in our construct and products group, I would say we have maybe a 30% or 35% exposure in new construction between residential and commercial, which means we’re in the 65% to 70% less cyclical renovation, repair, reconstruction, reroofing markets. And I think those markets are stable, and we’re picking up share given some of the new initiatives we have. The other area that – the only area that’s showing continued strength is related to industrial construction and capital spending driven by the onshore movement and a substantial amount of government subsidies in that area. And that is impacting Construction Products Group a little bit and our Performance Coatings Group more.
Unidentified Analyst: Got you. Okay. That’s helpful. Thank you. And then just I have a question on your comment in the deck here in the Specialty Products Group. So you mentioned customers held inventories below historical levels. I mean does this mean destocking this business is over and there’s been no uptick from restocking? Can you kind of try and parse that out for us? Thank you
Frank Sullivan: Sure. I think it’s over. I don’t know that it would have a much of a big impact going forward. But a good example is because the supply chain challenges into RVs and what remaining furniture or cabinet making is done. It was very common for those businesses pre-COVID to shut down for instance, in the month of January for maintenance and other things. And during the COVID period and in the post-COVID period with supply chain challenges, those shutdowns disappeared. Well, they showed back up in calendar ’23. And so they got back to normal shutdowns. There was inventory adjustments. The other thing that I don’t think we’ve emphasized enough here is most of this is done, but not all of it. But starting in December of last year, really driven by better data and our MAP ’25 initiatives, we very deliberately shut our own production in a number of areas to make some permanent inventory adjustments.
And so, you know, in the second half of ’23, we had tens of millions of dollars of unabsorbed overhead, both from lower volumes from a market perspective but also lower volumes from deliberate decisions to shut down productions in some of our specialty products companies, in our Consumer group and other areas to really address some permanent inventory level issues across RPM. Most of that is behind us as well.
Operator: The next question comes from David Huang of Deutsche Bank. Please go ahead.
David Huang: Hi, good morning.
Frank Sullivan: Good morning, David.
David Huang: I think in a deflation cycle, you historically generate $100 million to $200 million price cost tailwind. Can you talk about how much was the price cost tailwind on a dollar basis in FQ1? And then with higher oil prices now and some lingering inflation in consumer, maybe help us understand your expectation on price cost realization, this cycle versus the historical $100 million to $200 million range.
Frank Sullivan: Sure. So I can give you a big picture. I don’t know that we would disclose that by quarter. So, big picture in our MAP initiative, we laid out a goal, and it was actually a year ago that we went public with the MAP goals of achieving $465 million worth of savings. And about $115 million of that was our expectation of commodity cycle recovery. So non-MAP-driven initiatives, just the normal commodity cycle recovery. Our target this year in MAP savings is $160 million. I would venture that half of that is going to be commodity rate cycle recovery. You know, depending on our dynamics and looking at the past, it’s possible that we would exceed that $115 million. But again, time will tell as the pending quarter’s results happen.
David Huang: Got it. And then on SG&A. I guess, first, can you talk about the investments you’re making? And if demand gets worse from here, how much can you pair back from those spendings? And then can you also quantify the year-over-year headwind on incentive comp for your business?
Frank Sullivan: Sure. I’ll let Rusty address the incentive comp issue and some of it is a truly incentive comp, which is higher based on higher results and better mix and some of it’s continued inflation and wages and salaries.
