Who may not completely understand how these blades are built in the fact that it is a very manual process and first pass yield on a blade is generally zero because there are always some non-conformities because it is a manual process where you’re infusing resin on blade that’s as long as a football field. So you’re going to have some of that stuff. So I do think there’s probably a heightened sensitivity around non-conformities in the blades that maybe we didn’t see in the past.
Pavel Molchanov: Okay. Let me turn to the electric vehicle. I guess it was seven years ago, feels like ancient history that TPI started supplying these bus bodies to Proterra. And since then we’re watching every commercial suite is electrifying buses, trucks, vans and I’m curious why carbon fiber has not become kind of the universal or mainstream solution because it feels like its actually shrinking. What do you think happened there?
Bill Siwek: Yes. Carbon fiber is too expensive, Pavel, that’s why. But what we’re doing is not carbon fiber, its selective use of carbon fiber in key stress points that you need to use carbon. But most of what we’re doing is more glass fiber as opposed to carbon fiber. And I think as if – I mean if you look at what we’re and I wish I could tell you who we were working with. But if you look at who we’re working with and what we’re working on, there is some real traction taking place with the composite side of the business from an automotive standpoint. As they recognize it’s not just light-weighting but it’s the durability, it’s the performance especially in a battery enclosure, especially in certain of the structural panels and large panels with some of the unique technology we have. So I think you will see it pick up especially in the commercial space, but again it’s glass fiber mostly not carbon fiber.
Pavel Molchanov: Right. Okay. Point well taken. Are you working with Workhorse still?
Bill Siwek: No, we haven’t been working with them for over two years now, I think.
Pavel Molchanov: And GM?
Bill Siwek: We have done some work with GM that we’ve announced publicly. I can’t say what we’re doing now.
Pavel Molchanov: Okay. Thank you very much.
Bill Siwek: Yes. Thanks Pavel.
Operator: [Operator Instructions] Your next question comes from Julien Dumoulin Smith from Bank of America. Please go ahead.
Bill Siwek: Julien, you’re double dipping on us.
Julien Dumoulin Smith: Hey, I’m back, you better believe it. Hey, I just wanted to follow up if I can, on really pushing on the impact, the ongoing impact here? I mean I know you said by the end of 1Q that you should be seeing some normalization on sales or at least the field sales? But just can you elaborate a little bit of sort of the ongoing OpEx and the time line there? I mean it sounds like, again, you reaffirmed a couple of years out, you see an ability to get back to the high single digits outlook. But I just want to make sure we understand the full extent of the revenue and OpEx impact? And then separately, I show the second question in there. On the U.S. expansion, I know there was some talk about looking at the Western U.S. for a further facility is Mexico now a low of that?
Bill Siwek: So I’ll answer first on the OpEx and revenue. I would say on the OpEx side, Julien, we’ve as Ryan indicated, we’ve spent about $10 million in the first half of the year. We’ll spend about $2 million in the back half. As we’ve caught up and as we’ve gotten more efficient at kind of the new procedures that we’re following that we’ve developed as well as some of the new testing techniques and inspection techniques. I think it will – we won’t have an increase in OpEx because I really think, over time, we’re actually going to be – we’re actually going to find that we can reduce the cost of inspection because of what we’ll be doing upfront and how we’ll be doing it differently. So I think long-term, it’s actually, it will be helpful to us.
And on the revenue side, again, it’s from a field service standpoint, we should – we’re still hiring. We’re still trying to expand in all regions that we serve today. The limiting factor is hiring text, quite frankly but we’re still moving down that path. And we think we get back to a more normalized split of revenue generating versus warranty work by the end of Q1 of 2024. And then on the expansion, no, it’s not really in lieu of, Julien, it’s in addition to, is my belief.
