But in the meantime, as you said, T&E is still ramping up. It’s not ramping up as significantly as it was in ’22 relative to ’21, but still an impact there. And then the biggest impact again is just the annualization of last year’s hiring. And we’re not making outsized hires at that same scale but we are making a more normalized maintenance and growth level of hiring this year that we’re really excited about.
Weston Bloomer: Great. That’s helpful. And the 3 M&A deals that you did in the quarter, does that impact your margin profile either favorably or adversely or maybe change the seasonality of your EBITDAC or revenue?
Jeremiah Bickham: They’re too small to have an impact. And then generally, what we tell people is to think of acquisitions as coming on at the same margin and the same growth rate. If there’s an acquisition that is significantly different enough and significant in size enough to move the needle, we will let investors know.
Weston Bloomer: And then last question for me. I know you have a partnership with Nationwide and they had pulled out of those E&S commercial auto. Was there any impact of that within your numbers, or can you just comment on where that — where your relationship is with them?
Timothy Turner: Yes, we certainly noted Nationwide’s withdrawal from commercial auto but we have a wide product line and several other carriers that we can employ and to absorb that business. We’re expanding our transportation department as we’ve mentioned before, and we were ready for that change. The acquisition of Crouse and Associates really strengthened our bench and gave us a national breadth and depth in not just brokerage transportation but underwriting. So we’re looking ahead and we can absorb and make those changes without any effect.
Weston Bloomer: Great. Are you sizing that impact at all? That something you can…
Timothy Turner: We’re looking at double-digit growth in transportation in underwriting and in broking. We’re creating facilities, MGUs, expanded binding authority product line and that really doesn’t put or have any negative impact on our ability to grow.
Operator: The next question we have is from Mike Zaremski of BMO Capital Markets.
Michael Zaremski: My question is a follow-up to the question on margins relative to the pace of hiring. I guess are there any numbers you could help put context to the excess pace of hiring you made? I guess because we don’t have as long of a history to kind of understand kind of — we could see how many people you added in ’22 versus ’21, but we can’t see the long-term average. So I’m just trying to get a sense of any context you could put around like did you — was the pace of hiring 5 points more than you think is kind of “normal,” so we can kind of better understand try to size up the impact that’s had to your margins?
Jeremiah Bickham: So I won’t be able to put it in basis points for you, Mike, but think of it as over 1.5x normal sized production class relative to a normal year. And you’re right, looking at headcount won’t tell you the whole story because it’s generally the production folks that are the needle mover. One thing we can tell you, and we said this a bunch, is that production classes as a cohort will cover their costs after 2 years and generally be margin accretive sometime in the third year. So that’s why we’re confident that the ’22 class won’t be weighing down margin come ’24. And like I said, we’re not onboarding an outsized class in ’23. And if we only made normal size of hiring — size hiring classes, there wouldn’t be an impact in the following year. We can still scale somewhat if we’re just hiring at an average level.
