There’s a lot of projects out there for workforce housing. So we see a shortage in the market and the market is starting to adjust to the higher rate environment. And we’re also seeing greater adoption of modular. One of the things in Rick’s prepared comments was that the Modular Housing Institute says that modular’s market share is 6% versus 2% before COVID. So we’re just seeing more projects that are going modular, i.e., factory built, and there’s a lot of reasons for that. The number one is speed to completion, but also, in a lot of cases, lower cost. It’s greener and better quality. When the markets do come back, the regular markets, we think we’re well positioned to participate in increases in activity. So we’re happy with how we’ve executed, given the slowdown in the overall market and as we’ve talked about, through finding some interesting niches that are less macroeconomic dependent.
Operator: The next question comes from Devon Xu with North First Capital.
Devon Xu: Could you characterize or would you be willing to characterize in terms of your backlog and pipeline, maybe like a ballpark percentage type of growth you’re seeing or how we could maybe think about that?
Rick Coleman: Yeah. We actually wanted to do that on this call, but as we look back at the statistics, we weren’t — we were 100% certain that we were measuring apples and apples just due to the evolution of our systems at both of our constructions business. But the pipeline is where we’re seeing the most significant growth. And again, I think that’s just pent-up demand building, waiting for financing, waiting for credit approval, as Jeff mentioned. So our backlog is where our near-term opportunities are, of course, and we feel confident that we’ve got several months of backlog ready to be built.
Devon Xu: Got it. And then, I guess, given the kind of unique microeconomic versus pent-up demand environment, how are conversations in terms of M&A going? Are sellers more willing? Or how — what are you guys doing there?
Rick Coleman: Well, I would say this, we’ve looked at a number of different opportunities. We’ve got access to hundreds and hundreds of opportunities, and it’s a bit challenging to weed though them all. Our priorities are, first of all, increasing shareholder value. But we’re also looking for opportunities to expand both of our construction business through bolt-on opportunities, and at the same time, looking for other growth acquisitions where we have either specific experience on the corporate team or where we see a good fit with our existing businesses. So we’re continuing to weed through those. And because of our holding company structure, we were able to look at a wide variety of alternatives in our investment division as well as in the core operating business.
Devon Xu: Got it. I guess could you characterize whether or not it’s more of a buyer’s market since maybe last quarter, or kind of no change?
Rick Coleman: Yeah. From what I’ve seen, it’s very situational. There are a number of great opportunities where, as someone mentioned earlier, the founders are retiring and there’s no one to pick up the ball and move the business forward. But there are also a number of opportunities where expectations for pricing are just simply too high based on results in 2022 without regard to what the forward-looking environment might be. So we’re being very selective, trying to be value to investors, and at the same time, balance that with our desire to grow the business.
Operator: [Operator Instructions]. All right. This concludes the question-and-answer session. I would like to turn the floor to Rick Coleman for any closing comments.
Rick Coleman: Thank you, operator. Before concluding the call, I want to note that we’re always available to take your call and to discuss any additional questions you might have, so please don’t hesitate to contact us. We’ll continue to share our story with existing and potential investors in the coming weeks and months. And as always, we appreciate your interest as well as your continued feedback and support. Thank you.
Operator: Thank you for joining the Star Equity Holdings third quarter conference call. Today’s call has been recorded and will be available on the Investors section of our website, www.starequity.com.
