So I think that the nature of that will allow us to — even if you were to see a slowdown in bookings which is entirely possible. I would expect it if you really go into a modest recession, you’ll see a slowdown in booking. But you’ve got almost 2 years of backlog sitting there that you’ll continue to execute on. And I think that will help you ride through it. And we haven’t had that for a bunch of years, Peter, as you know. So I think that it’s one that would translate to a slowdown in bookings, but not something that would slow us down in terms of our revenue and margin generation.
Peter Skibitski: Okay. That’s fair. Just one last one for me. Scott, are you guys any closer to signing that AH-1 deal with Nigeria?
Scott Donnelly: Well, I mean it’s in the kind of government contracting process, right? So that ends up being — because of the FMS nature of that, that would be signed between ourselves and the U.S. government. And as you know, Peter, that can take a little while.
Pete Skibitski: Okay. Fair enough. Thank you.
Operator: Your next question comes from the line of George Shapiro from Shapiro Research. Please go ahead.
George Shapiro: Frank, if you could just fill in a couple of numbers. How much was aftermarket up in the quarter?
Frank Connor: Well, at aviation, aftermarket as a percent of the sales was 27%. So you can kind of do the V based on that, it was 11%.
Eric Salander: for the year, and I think it was in the quarter.
Frank Connor: Yes. And aftermarket was 33% of total sales for the year at aviation.
George Shapiro: Okay. And Scott, you didn’t specifically mention, but I assume you’re looking at deliveries based on the revenue forecast for ’23, somewhere 200, 205 deliveries. Is that fair?
Scott Donnelly: Yes. It’s going to be in that neighborhood, George. And we’ve got a lot of dialogue and think about when you back to ’19 and obviously, the mix of aircraft is quite different, right? I mean we’re certainly heavier on the super mids and the mids than we would have been a few years ago, but that’s — if you look at our revenue guide, it’s probably going to be somewhere around that couple of hundred aircraft.
George Shapiro: And Scott, I looked at the fourth quarter and even if I added back the $16 million that you mentioned for supply chain issues, the margin was still weaker than the last couple of quarters. So what else was going on there?
Scott Donnelly: Well, I don’t know where the 16 — the inefficiencies that we took through and LIFO, which was around probably about $10 million or something impact is largely what drove us to the margin rate that we reported.
George Shapiro: Okay. Very good. That’s it for me. Thanks.
Operator: Your next question comes from the line of Noah Poponak from Goldman Sachs.
Noah Poponak: Scott, you’ve alluded to it, but your backlog is several multiples of what it was just a few years ago and the production is not. So what’s the average wait time at this point? And how are you thinking about managing how long you’re making customers wait for an airplane?
Scott Donnelly: Well, look, I mean it does vary from model to model, right? When you look at the longitudes and latitudes the larger aircraft in the family, and we think those should be out a couple of years. And that’s generally where they are. When you get into some of the smaller aircraft. Those tend to be a shorter cycle order deliveries. But again, those probably should be in that 12- to 18-month kind of window. So when we think about production volumes and what we’re laying into our forecast which is then, that then drives what our sales team has in terms of available slots and time frames, that’s kind of how we’re managing it.
Noah Poponak: Okay. How does pricing that’s entering the backlog now compared to pricing that’s hitting the P&L now in the aviation jet business?
Scott Donnelly: It’s better.
Noah Poponak: Increasing or stable?
Scott Donnelly: I’m not sure. I mean, we don’t measure a gap. You mean pricing of inflation, is that —
Noah Poponak: I guess what I’m wondering is, I know you’ve been taking price as the market’s been stronger. Was there a period of time as the market was strengthening, where you were not taking as much price to allow the backlog to extend first before you now take more price? Is that the strategy? Or has it been pretty consistent for the last few years?
Scott Donnelly: It’s been pretty consistent, Noah. I think like the pricing, obviously, demand is strong, right, which is very helpful from a pricing standpoint. But our opinion, this market has been mispriced for a long time. I mean, this is a business which, as you guys know, it’s a lot of R&D. It’s expensive to develop these things and get them through certifications and you need to have fair pricing to generate these kind of margins. We always believe the business had to be back as a double-digit profit margin business, and we’ve been driving price to make sure that, that’s the case.
