Frank Sullivan: So a couple of things. I think we need to be effective in the sales and marketing and promotion activities that we expect to generate consumer and we are excited about that in the spring. So you will see some new product rollouts, and again, a higher level of advertising and promotion, because we have gotten ourselves back to the point of being able to supply on a very high level efficient basis. And I think we have a number of growth initiatives around Nudura. That’s just — that’s a business that grew from $40 million to $100 million. It’s a big. It’s got a disproportionate amount of that work in residential. We have a lot of work to do to get that specified into commercial markets, particularly schools and other areas and we are working on that and the economic circumstances are not going to change that focus.
So we have a number of exciting areas for us that we are going to continue to invest in, notwithstanding what’s going on with the economy. Broadly speaking, Mike, we have got to see the Fed quit raising interest rates and we have got to see some stability in housing and things like that. And so those are the macro issues that are not only affecting us, but I think they are affecting everybody and so that’s — I guess that’s the best answer I would have. We — to an earlier question, we manage our SG&A unit-by-unit. We will continue to do that where appropriate. But we are not in a position where we see any need to come out with any broad based expense reduction program. We are still focused on executing our MAP program and selectively investing aggressively in a number of growth initiatives.
Mike Sison: Got it. Thank you.
Frank Sullivan: Thank you.
Operator: And our next question will come from Vincent Andrews with Morgan Stanley. Please go ahead.
Vincent Andrews: Thanks. Just two
Frank Sullivan: Good morning.
Vincent Andrews: Good morning. Just two quick ones for me. Frank, I just wanted to clarify, you — the $40 million of market share in spray paint and wood stains. Did you gain that or did you lose that? I just didn’t follow it.
Frank Sullivan: We have lost that over the last 12 months and I think that’s in relationship to, it wasn’t unique to us, but the challenges that we faced in meeting demand because of supply disruptions. And so that was a between spray paint, where we have had a bare gain, a modest amount of spray paint in Home Depot and also some wood stains and finishes, about $30 million or $40 million of market share loss and I believe that’s over.
Vincent Andrews: Okay. Thank you. And then, Rusty, you mentioned increasing marketing ad spend and I just wanted to clarify whether that was an actual increase versus, say, 2019 levels or whether it’s a just sort of normalization, because you took it down when you didn’t have sufficient raw materials to actually make the product. So why would you advertise? So can you just clarify what’s going on there?
Frank Sullivan: Yeah. This is Frank. It’s a little bit of both. It will be up year-over-year just because we didn’t spend a lot in the face of the supply chain challenges. But we are working to get back to normal levels pretty quickly and we have got some exciting new product introductions that we will talk about in the spring. And we have some exciting new products, we have some new market share opportunities and we have our operations in a position to lean in hard to support all of that. So we are going to get back to an advertising and promotion level that’s more consistent with the past and there will be necessary to support that growth.
Vincent Andrews: Okay. Is there any quantification of that just in terms of, I assume that will fall into SG&A as well or is that already in there
Frank Sullivan: That — it falls in SG&A and we will be in a better position to provide details on that in April.
Vincent Andrews: Okay. Very good. Thanks so much, guys.
Frank Sullivan: Yeah.
Operator: Our next question will come from Arun Viswanathan with RBC Capital Markets. Please go ahead.
Frank Sullivan: Good morning, Arun.
Arun Viswanathan: Great. Good morning, Frank. Happy New Year. Thanks for taking my question. A lot of my questions have been answered, but I think maybe I will try this in a slightly different way. So, it sounded like the Construction Products sales cadence really slowed down in November, December and it sounded like, I don’t know if that was surprising. So would you say that we are still in early innings of this slowdown and you noted that maybe it will take six months to nine months for inventories to be worked off. Is that kind of how you feel about the demand trends as well and maybe you can just comment on if that’s the case for some of your other businesses as well? Thanks.
Frank Sullivan: Sure. So, at some point, we are going to be rounding easier comps in Europe, because Europe, we have been talking about since last spring has been deteriorating. And so I don’t — we are not in early innings there at all, we are in the teeth of a pretty good recession in demand destruction. And so, I think, boy, six months from now, nine months from now, at the very least, we will be stabilizing and moving in the right direction there. Part of that is geopolitical circumstantial in terms of the Russian war in Ukraine, in terms of energy markets in Europe and those things. The one area, and again, it’s about $300 million, about $200 million in Construction Products and $100 million in Consumer, is our exposure to residential, new construction.
And I wouldn’t say it surprised us, but data has slowed down significantly and profitable business there. And I think you need to see stabilization of what the Fed is doing on interest rates before you are going to see stabilization both in the new home construction space and better housing turnover, which also drives a nice chunk of our
Arun Viswanathan: potentially sluggish demand trends and destocking that’s going on, do you expect to give back some of the price initiatives that you have achieved in a little bit more rapid fashion? How do you kind of plan to maintain the margin trajectory and recovery that you kind of had hoped for and experienced through the last couple of years? Is there — are there other measures other than pricing like mix or anything else that we should think about or, yeah, how do you plan to keep some of that margin recovery?
