And it’s too early in the year to speculate what else we could see for the remainder of the year. But I — still I believe and as I said in my opening remarks, 2023 was a strong year, 2024 is a strong year. And by what we’re seeing today, we think 2025 will be a strong year.
David Raso: And maybe you don’t want to answer it, fine, but just so I can ask it again though, is there a number you can give us a sense of what your customers are asking for in ’24 relative to your guide, just so we know the torque? And, hey, if things do loosen up, as you said, the second half of the year, let’s say, third quarter in particular, we can get that upside, then what’s the conversation like on, “Look, if I can’t get it from you, I’m going somewhere else and I can get it for ’24,” or does it inherently push it into ’25? I’m just curious what those kind of dynamics thinking about the two years of AWP, not just ’24?
Simon Meester: Yeah. And I don’t think I can give you an answer today, David. What is important for us in 2024 is that what we’re committing to our customers is what we’re delivering on. And so that’s our first priority. And how much of that eventually will end up spilling over in 2025, what we’re currently committing to, we don’t want to spill over into 2025. And so that’s what we’re committing to. That’s what we want to build and that’s what we want to ship. Currently, we think that we have — we could have upside to the upper end of the range, but I can’t give you a number of what that eventually could look like when we hit the middle of the year, for example.
David Raso: I appreciate it. Okay, thank you.
Operator: Your next question comes from the line of Steve Volkmann with Jefferies. Your line is open.
Steve Volkmann: Great. Thank you, guys. Good morning, everybody. I’m going to stay with this theme a little bit. Can you sort of ballpark for us, I don’t know, two years or whenever this is — Monterrey facility is up and running in full steam, how much capacity are you adding in the AWP product, roughly?
Simon Meester: So, the main reason we built Monterrey, we are building Monterrey, was — because we wanted to improve the overall competitiveness of the business. So, it was mostly to improve Genie’s through cycle margin performance. And as I mentioned, the project goes really well. We’re also expanding our supply base, and it’s mostly a facility that will be focused on supporting North America. What it will actually mean in terms of capacity expansion, I can’t give you a hard number, to be very honest with you. It’s a facility that’s mostly that helped us to kind of bring some higher-cost facilities offline like Oklahoma City and Rock Hill. So for us, it was mostly cost and competitiveness play, but obviously, the facility is built to grow. And so, we can expand going forward, but for now it’s mostly to bring higher-cost capacity offline.
Steve Volkmann: Okay. Thank you. And I think, Julie, you said that you expected $15 million to $20 million of kind of start-up costs down there for the full year ’24, please correct me if I’m wrong. Are there any other kind of headwinds we should be aware of in margin in AWP in 2024? And I’m just kind of thinking about bridging the gap with sort of your biggest competitor.
Julie Beck: Yeah, when you think about the inefficiencies, I guess, related to Monterrey, we’re saying $15 million to $20 million in 2024, but that’s primarily more centered to the first half of the year. And so, we expect margins to improve in Q3 and Q4 as more production is going through that facility, it becomes more efficient and the inefficiencies go down. So that’s the primary difference. And I guess I’d just take this time to talk about, as you look at our comparisons year-over-year, these we started up our Monterrey in Q3 and Q4 of 2023, so it impacted the second half of the margins, they’re not in the first half of 2023 when you compare. And so, we’ll have those inefficiencies running through the first half of the year. And then, in the fourth quarter, margins will improve, and those inefficiencies will — that were in the second half of 2023 won’t be as much in the second half of 2024, if that helps in your calcs.
Steve Volkmann: Yeah, great. Thank you.
Simon Meester: Thank you.
Operator: Your next question comes from the line of Tami Zakaria with JPMorgan. Your line is open.
Tami Zakaria: Hi, good morning, Team Terex. Hope you’re doing well.
Simon Meester: Good morning.
Tami Zakaria: Hi, how are you? So, my first question is on the Monterrey facility again. Just trying to understand the 200-basis-points improvement in operating margin in 2025, when it ramps, how volume-dependent is that margin improvement target? So, let’s say, if 2025 volumes, for assumption, let’s say it was down, would you still see a margin improvement given it’s a big facility, capacity utilization is probably needed to get that 200 basis points number. So just trying to think about the capacity utilization versus volume dependency of that 200 basis points target.
Julie Beck: Well, Tami, there’s always a lot of variables that happen, but all things being the same, we would expect to have a 200-basis-point improvement. And we would expect, as Simon said, we’re seeing a strong demand in the marketplace, so we wouldn’t anticipate that being an issue at this point in time. And so, we would plan on the 200 basis points margin improvement in 2025.
