Joshua Pokrzywinski: Hi, good morning. I guess just wondering if you can give us any detail on how you’re thinking about some of the stimulus items? I think you mentioned, there’s probably more of a second half phenomenon. So maybe more of a €˜24 story, but what do you think that can be worth in terms of growth? Is €˜23 really just a bookings year? And when you think about Dave that sensitivity you gave on the backlog conversion versus maybe the cushion you have on the orders front? would IRA be a potential kind of further source of cushion that you think about in that?
David Regnery: Okay, nice question, Josh. I think that first I’ll start with what we’re seeing right now in stimulus, we’re seeing a lot of demand, obviously, within the education vertical. If you’re looking at our education vertical in the Americas, the equipment business, in 2022, it’s up close to 40%. Okay, and that’s going to continue for some time now. I believe the change in that was, if an order booked, I think it’s September 2024, you actually have until 2026, to have it installed. So we see that continuing to happen. And you see that in our very, very strong absolute booking dollars that we’re able to generate. IRA, obviously that’s still being worked through the funds are going to flow from the Fed to the states, and then the states will operate in a framework, and we’ll work with the different states to make sure that we’re very clear on how that’s going to happen.
We see that as it’s certainly in the back half of the year, both in the commercial space, as well as in the residential space. The key to being successful, really, with IRA is, how do you take something that’s pretty complex right now and make it really simple for the customer? And that’s exactly what we did with the education funding that was available. And we’ll do the same. We’re really good at that with the IRA. As far as the CHIPS Act go, yes, that’s going to be back half. I mean, we, that’s all-in front of us. And it’s certainly going to be an opportunity, we have a lot of strength in that vertical, we had great customer relationships. But some of that bookings could happen in 2023. But that’s really all in front of us. I think the applications are just being opened up here in the first quarter so that they can start applying for these funds.
So that’s really all in front of us, given the duration time it takes to actually get a bad plan from planning up to operations.
Operator: We’ll take our next question from Chris Snyder with UBS.
Chris Snyder: Thank you. I just wanted to start by following up on the prior commentary around some of the IRA benefits potentially coming through in the back half of the year. I mean, how do you feel about capacity and available supply to meet the expected pickup in heat pump demand into the back half?
David Regnery: Yes, it’s a good question. I think I’ll start with the supply chain. I think the supply chain continues to improve gradually. The fourth quarter was better than the third quarter, I’m sure in the first quarter, we’ve done in the fourth quarter. But we see that is a several quarters before the supply chain gets back to what I would call normal. As far as capacity is concerned, we don’t have capacity concerns. As a company that embeds lean thinking in our operating system, we’re constantly looking to, for ways to expand our capacity with our own four walls. So we’re very comfortable, we’ll be able to meet the demand. That will happen and hopefully it starts to happen in the fourth quarter.
