Michael Tupholme: Okay, thank you. And maybe just one last one here. Appreciate the challenge early in the year with trying to provide guidance that is inclusive of LTIP piece. Really appreciate you giving us that detail this time around because it’s sort of more closely aligned with how the results actually get reported. I guess the question is, in the guidance you’ve given that includes the expected impact of LTIP revaluation, do you make assumptions for the fourth quarter in coming to these numbers on what that looks like? Or do you just assume nothing? Or how do you deal with that in the fourth quarter in your assumptions?
Theresa Jang: Yeah. It’s proven to be quite tricky to think our way through how to provide it in a way that’s helpful, because I’ll start by saying it, a number of you have asked us one-on-one, why can’t you give us specific guidance or a rule of thumb or how this works. And in part, what complicates this is our need from an accounting standpoint, to run a Monte Carlo simulation on what our performance from a relative TSR standpoint is compared to our peers. And so, that is a wild card. So, in the guidance that we’ve provided, what we’ve said is, assuming there’s no change in our share price from the end of September — assuming all of those metrics stay the same, here’s what the impact will be. And that’s the best guidance we can provide because, of course, we don’t know what’s going to happen from a share price perspective.
And so, the piece that even if our share price doesn’t change from the third to the fourth quarter, as we continue to accrue a quarterly tranche of our LTIP, that now gets priced at a higher level than would have been assumed when we set our guidance at the start of the year. And so, there is an impact even if our share price doesn’t move from third to fourth quarter, and that’s the value that we’ve tried to give you.
Michael Tupholme: Okay, that’s helpful. Thank you.
Operator: Thank you. And one moment as move on to our next question. Our next question comes from the line of Sabahat Khan with RBC Capital Markets. Your line is open. Please go ahead.
Sabahat Khan: Great. Thanks, and good morning. So, you provided a bit of color on the outlook and just the demand environment. But I was hoping we could go a little bit deeper into what you might be hearing from kind of the U.S. federal, state, municipal customers. Like a lot of the pushback we heard from investors over the recent week has been macro related. So, I was hoping you could just maybe give you an opportunity to share some comments on kind of some of the specifics you’re hearing on the rollout of these bigger plans, kind of their ability to fund these programs, and just kind of the state of the U.S. kind of government customer relative to where it was maybe three, four months ago? Thanks.
Gord Johnston: Yeah. Thanks, Sabahat. Good morning. We’re feeling really strong about the U.S. economy overall. You’ve seen where organic growth this year has been, about 13%, 12.9%. We’re just kind of matching that here in the third quarter. But we still see very strong growth. When we look at some of our big markets in the U.S., Water, certainly 26% organic growth in Water in the quarter. And we see no slowdown in the type of work that we’re doing there. Certainly, a lot related on the industrial side. We’ve talked about some of the advanced manufacturing facilities previously that we’re working on there. We see a lot of work with the U.S. federal government from the perspective of shoreline resiliency type work and so on.
So, a lot of opportunity there. So we feel very, very strong in the Water business. Transportation remains robust. And that’s even — as you said before, the IIJA has really started to hit, and we do expect that to be more of a tailwind for us through ’24, but really, that’s going to provide — once that’s ramped up, strong bidding environment out to 2028 and beyond. Energy transition still very strong. We see a lot of work coming out in electrical grid strengthening. We saw just yesterday, I think it was announced a [ballot] (ph) initiative in Texas, several billions of dollars in electrical grid strengthening. So, whether it’s electrical grid work, environmental work, water work, transportation work, we’re just seeing very strong support in all of our businesses in the U.S. The one area that we are seeing a little bit of potential softness would be in our land development business.
That’s — you’ve seen housing starts trending down a little bit as interest rates have gone up. So that’s something we’re certainly monitoring. And that’s not just in the United States. We’re seeing that in the U.K. as well. So it’s not a significant piece of our business, but certainly something that we’re watching closely. But other than that, we see very, very strong tailwinds across our business.
Sabahat Khan: Great. And then I guess, amidst this kind of outlook, how are you thinking about staffing up whether — I think primarily in the U.S.? You’ve got a potentially large pipeline of demand. Are you going more with full time? Or are you looking more to go toward contract to keep some flexibility? Just — and maybe how is the wage situation in terms of hiring engineers, consultants, et cetera?
Gord Johnston: Yeah. So the majority of the people that we bring on, Sabahat, are full-time employees. And I made a couple of comments in our — in the prepared remarks. Firstly, that our voluntary turnover rates when people leave us have returned to pre-pandemic levels, down almost 2% in the last year. We had record hiring quarters in terms of number of people joining us. Q3 was another record. We’re hiring at roughly 2 times the rate that we did before the pandemic. So, we’ve got good work. We’re bringing on good employees. From a salary perspective, interestingly, we’re seeing salary pressures soften a bit this year from what we saw last year. Last year, we saw overall salary increases in that 4% to 4.5%-ish type range. This year, we’re seeing it in that 3% to 3.5%, sometimes 4%. But certainly, we’ve seen that the wage inflation has moderated from an expectation perspective as we go into 2024 in our industry.
