Steve Dyer: I guess I could sneak one more and you guys were very acquisitive kind of before the top of the last cycle. I guess, what did you learn or what would you do differently sort of as you look at the footprint and your appetite for acquisition with commodities at near all time highs?
David Meyer: I think we’ve totally, we continue to look at quality acquisitions, we’d like to see upper Midwest footprint, we like these strong growing areas, areas where we got synergies in our equipment, and we’ll continue to look at that. But I think with this tightening of equipment and seeing, how we can leverage across these acquisitions with our current backroom staff that we already have in place it, that’s really working. But with that said, these increased turns really focused on the margins, making sure, we’re moving that user equipment out of the system fast. I think you don’t see any overhang of equipment or on both the Ag and the Construction side. And to continue that way, I think that just going to be really good for not only Titan, but for the industry.
Operator: Thank you. The next question is coming from Daniel Imbro of Stephens Inc. Please go ahead.
Daniel Imbro: Yes. Hey, good morning, guys. Congratulations to Bo on the new role and then to Mark for a great career. I want to start of question on the Heartland acquisition. It sounds like integration is going well. I’m curious to know how your customers are responding. Remember back at the time of the deal, you guys talked about potential revenue synergies, just as we head into a seasonally higher time of the year. How are you feeling about that revenue capture target you initially laid out?
Bryan Knutson: Yes. Hey, Daniel, this is Bryan. Yes, like you said, there’s a lot of work to do. Even back to Steve’s question, what we learned from the past replacement cycle and acquisitions, just how important integration is, right? And so, a lot of time going into that, but going really well, we feel even more confident today about the potential synergies and all the shared opportunities that we had with the two great organizations. So, we’re hearing from our customers, they’re excited about all the additional service points, now available to them, all the additional parts points available to them, the additional equipment available to them, quicker reaction times from us than and less downtime for them. So really excited about that.
If anything maybe a little timing on those synergies just because, as you know, we’re struggling to get enough equipment to meet the demand for our legacy or historical customers, but we definitely reiterate and feel really strong about our synergy opportunities that we’ve laid out, again, we just got to get the equipment to be able to do it.
Daniel Imbro: That’s helpful. And as I think about you mentioned the service and parts opportunity and to follow-up on Steve’s question. There’s not enough supply demand continues to outpace it. That should be good, I would think for service and parks into next year. But how are you feeling about parts supply, you got to build them inventory? Should we expect given this supply demand backdrop, continued service and parts tailwinds into next year, maybe above historical trend growth rates just as we think about that part of the business?
Bryan Knutson: Yes, you see supply chain, some signs of improvement here and there, a little bit and we feel some of that will pull-through earlier on the part side. But as Mark mentioned, primarily, we really stepped up and going back several quarters here. And you see, it reflected our balance sheet, but we’ve proactively ordered up on parts. We’re going to continue to do that through the supply chain, it’s just part of our customer centric strategy and it’s helping drive increased part sales as well, and we continue with our parts initiatives. And so, we definitely feel good about the parts opportunity next year. It won’t be easy. The supply chain is still very disrupted in the part side is as well. But again, we another thing with our operating model is we have a dedicated team there as well, just like on the whole good side where with the parts that, that’s all they do for a living.
So, they really have the relationships and really understand the systems well and are watching their screens every day and that’s all they do is procure parts for a living for us. So, we feel good about that going into next year.
Daniel Imbro: Last one for me. I wanted to ask on the Construction side. I think on Slide 5, you mentioned the residential construction is moderating. I mean, it makes sense given the backdrop. But could you frame up your exposure to the residential side? Like how much of construction is purely residential? And then within the guidance or are you assuming the residential construction continues to slow from here, given what’s happened with rates? Or how — what’s your outlook for the residential segments?
Bryan Knutson: Yes. We are considering it to continue to slow a bit. But remember that all throughout the year here and as we go into the foreseeable future, we’ve had demand way outpacing supply. We’ve got a pent up demand from our contractors. We’ve got a waiting backlog and that’s an aging fleet out there because of that. So that’ll also help on the parts and service side. And then, you typically see on the on the horseshoe impacted, more by this type of thing as well as on the opposite way on positive. So, the Midwest being a little more insulated by that in our markets, we’re still seeing pretty good activity, even with the slowdown in other parts of the country due to the rising rates. And so, we still have a lot of activity.
We feel good about it, our exposure, we also were very diversified on the on the construction side. We do a lot with farmers and ranchers, as I mentioned for feedlots and land improvement, and so that end is still very strong, as well as with the infrastructure spending. So, we really work with a wide variety of contractors.
Operator: Thank you. The next question is coming from Larry De Maria of William Blair. Please go ahead.
Larry De Maria: First, can you maybe elaborate a little bit on the allocations? I mean, at this point, we expect to have significantly more availability next year, and with allocations, you risk losing any sales at this point?
