Matt Missad : That’s a really fair question, Jay. What I would tell you is it kind of goes with our philosophy. There’s going to be certain economic challenges over the next five years, and I certainly am not smart enough to predict when those are going to happen. So we look out ahead and we say five years from now where do we want to be, and we believe that those are very realistic goals for us. There may be bumps on the road getting there over the next five years, and I think the first six months of this year is part of it, but that’s not going to deter us from the goal of getting to these targets.
Jay McCanless : Okay. Thank you, Matt. And then, Mike, last question. For me, it sounds like the customer health is still pretty good. It sounds like DSOs were improving. Anything you’re seeing on late pays or delinquencies, just given some of the softer demand out there that we should be mindful of?
Mike Cole : Yeah. I mean, anytime you come into a slower cycle like this, it’s always something to be concerned about. I think our teams do a really outstanding job of staying on top of the receivables. So when I look at our aging, while there’s always going to be something that’s out there that can surprise you, I think with the diligence we have on it in the current state of how they look, we’re in really good shape, and I don’t see anything material in there.
Jay McCanless : Okay, thanks, guys. Appreciate it.
Mike Cole : Hey, thanks, Jay.
Operator: Thank you. One moment for our next question, and that comes from the line of Kurt Yinger with D.A. Davidson. Your line is open.
Kurt Yinger : Great. Thanks for taking my follow ups. You talked a little bit about consolidated manufacturing in certain business units. And I guess, I’m curious how you’re thinking about balancing that versus the expectations for a rebound in some of your markets over, call it, the second half of the year and into 2025? Looking back at ’21 and ’22, getting the labor was a challenge. I think in certain parts, you were challenged from a capacity standpoint in packaging. So just curious if you could talk about kind of the mindset of operating efficiently and making sure you’re managing costs and what’s a challenging, at least, first part of the year versus those growth expectations and some of the challenges we’ve seen over the last couple of years?
Matt Missad : Yeah, that’s a really good connection, Kurt. And I think the way I would look at it is our teams have done a great job by bringing together automation, increasing the capacity at existing facilities and in the packaging space, in particular, utilizing more of a hub-and-spoke model where they’re able to process a lot more product in the same footprint. And that’s due to a lot of different factors, but not the least of which has been the investment in automation and technology. So what we’ve actually done is increase the capacity over what it was in ’21-’22 without increasing the footprint. So we think we can do just as much volume in a smaller footprint and do it more efficiently. So that’s why we feel good about being able to say, hey, we’re going to take some things off-line because we don’t need them and we’ll consolidate them.
And that’s still part of an ongoing process, almost regardless of what the economy is doing. We have to keep doing that with that technology and innovation spend, and that will continue to help us be a low-cost producer.
Kurt Yinger : Got it. Okay. And then, I guess, just specifically on the Site Built business, if we do see lower rates stimulate additional new construction activity. How are you thinking about potential expansions in that business? I mean, we’ve seen quite a bit of consolidation in recent years. It seems like there’s been a structural improvement in the margin profile. I guess, I would just love to hear your overall thoughts on organically expanding your presence there?
Matt Missad : Yeah. Our Site Built team has a pretty aggressive expansion plan. So we’re going to, again, look to the markets where we in-migration or we see growth as opposed to those areas where people are moving out of. So the Mountain West area is an area that we’re focusing on. Again, there’s more areas in the Southeast. If you kind of follow the map of housing starts and where they’re growing the most, that’s where the team is looking at expanding our presence. So we expect to see more of that in ’24 and beyond.
Kurt Yinger : Got it. All right, great. Well good luck here in Q1, guys. Thank you.
Matt Missad : Thank you, Kurt.
Operator: Thank you. I’m showing no further questions in the queue at this time. I would now like to turn the call back over to Matt Missad for any closing remarks.
Matt Missad : Thank you again for spending the time with us today. In 2024, we know we’re going to have to work smarter and harder to be successful. We will continue to allocate capital wisely, mixing current return to shareholders with growing longer-term value. Whenever we have challenges, I rely on our experienced leaders who have been through many economic cycles. And like the late Toby Keith, I’d like to think that, although I am not as good as I once was, I am as good once as I ever was. Fortunately, I’m surrounded by our great team of leaders and teammates who with their incredible talent will continue to drive success and make it better in 2024. Thanks, and have a great day.
Operator: This concludes today’s program. Thank you all for participating. You may now disconnect.
