Noah Merkousko: That all makes sense. I’ll leave it there. Thanks for taking the questions.
Robert Buck: Thank you, Noah.
Operator: Thank you. Our next question comes from the line of Jeff Stevenson with Loop Capital Markets. Please proceed with your question.
Jeff Stevenson: Hi, thanks for taking my questions and congrats on the nice quarter. So, you reported another quarter of healthy high-single-digit commercial installation volume growth. And I just wondered if you could talk more about the success you’ve had growing your commercial installation business? And whether you’ve seen any change in bidding activity as we move through the back half of the year as some of the leading indicators have started to slow?
Robert Buck: Yes, Jeff, this is Robert. So, I’ll hit on several points to that. Number one is just, again, we’re in that light commercial and heavy commercial space as well as the industrial space. So, we really cover all the end markets. And all of our residential branches can do that light commercial work, and they’re doing a fabulous job of bidding that, staying after it. Heavy commercial, we’ve not just driven growth in that. We’ve also driven operational improvements in that, which Rob hit on some of his commentary as well. And I think as we look across that, we continue to make investments. We continue to add sales talent. You heard us talk about some cross-selling opportunities. You’ve heard about a major investment we’ve made in our Lead App tool, which is really exclusive to our business — proprietary to our business.
So, I think those are the drivers we’ve got our team focused on. Our team really dives into this multiple avenues of growth. And so I think you see that coming through in the results and our confidence in this piece of the business going forward, and again, what we built here.
Jeff Stevenson: Okay. Understood. That makes sense. And then given your capital-light business model, I’m wondering if you had to make any adjustments to your workforce with demand continuing to hold in better than prior expectations?
Robert Buck: No. No change in the workforce. I mean we’re always driving efficiencies there. So again, back to some of the margin performance you see that was driven by a lot of efficiencies and continued things that we work in the business. But no adjustments, given the nice growth that we’re seeing and our outlook.
Jeff Stevenson: Great. Thank you.
Robert Buck: Thank you.
Operator: Thank you. Our next question comes from the line of Reuben Garner with The Benchmark Company. Please proceed with your question.
Reuben Garner: Thank you. Good morning everybody. Most of my questions have been asked already, but I just have one quick one. So, a lot of talk about fiberglass availability. Can you talk about availability and pricing trends in some of the more commercial and mechanical areas, anywhere that you — any particular ones that you expect to remain tight into 2024, any areas that could be at risk of kind of loosening up?
Robert Buck: No, I mean there hasn’t been a considerable inflation in some of those products. I mean, there are some products that are still kind of tight, I think, about mineral wool, some of those products are definitely still tight in the industry. And then from a pricing perspective, the only thing I’d mention is on the mechanical side or what the industry calls, C&I, commercial & industrial, there is an industry-announced price increase out there in that piece of the business, and we’ll call that in January of 2024. Not unusual for that piece of the industry to announce increases at the beginning of the year. So, we’ll see how that plays out. But that’s out there in the future, and has been announced by the manufacturers.
Reuben Garner: Okay. I said one question, but one quick follow-up since you brought up mineral wool. I’ve heard — we’ve heard increased usage in the residential space, townhomes have gained steam, I guess you got to use it in that area. Is that something you guys do and maybe have elevated share on, given your commercial exposure maybe relative to some of your peers?
Robert Buck: Yes, I think we’re probably the largest player in mineral wool both in Canada and the US. Obviously, a lot in the commercial space, some in some high-rise, multiunit-type of development, but definitely a big user on the commercial side. So, very familiar with the product, and we release it across the footprint.
Reuben Garner: Great. Thanks. Congrats on strong results guys.
Robert Buck: Thank you.
Operator: Thank you. Our next question comes from the line of Keith Hughes with Truist Securities. Please proceed with your question.
Keith Hughes: Thank you. Question on TruTeam, you called out for strong commercial multi-family. As a percentage, what are those two representative TruTeam sales? What’s the run rate?
Robert Kuhns: Commercial runs about 15% of total TruTeam sales. And then on multifamily, we’re going to be indexed similar to what the industry is there. So, the split will be — our residential will be split similar to what the industry sales are.
Keith Hughes: So, you mean versus what we see on starts? Or what’s the benchmark you’re referring to?
Robert Kuhns: Yes. It’s — a multi-family is a little tougher because of the choppiness in the starts and completions data, but — probably completions would be the best thing to look at there.
