Giordano Albertazzi: Yes. No, absolutely. I would say that the general plus-25% that we were signaling during the slide show earlier, it’s definitely applicable – is definitely applicable to pretty much homogeneously across the world. And certainly true for the North American business as of now. And as I was saying, we will continue to invest. But we do have a very explicit and well-orchestrated initiative, to make sure that we use and leverage the global capacity also for the U.S. It’s something that we are doing already partially today in different degrees, different lines of business. But it’s something that we will be able to accelerate and accentuate as we go ahead. In terms of American codes versus other type of codes, that’s something that – it’s just about having the right certification, of a plant outside the North American or American region.
And it’s something that we have or that we are accelerating, depending on the technology. So it’s very, very margin-focused and very much something we do and that we will accelerate going forward.
Andrew Obin: Thanks so much.
Giordano Albertazzi: Thank you.
Operator: Our next question comes from Andy Kaplowitz from Citigroup. Andy, your line is now open. Please go ahead.
Andy Kaplowitz: Good morning, everyone.
Dave Cote: Good morning.
Giordano Albertazzi: Good morning, Andrew.
Andy Kaplowitz: Gio, I know you said that the – good morning. I know you said that the positive order inflection you’re seeing hasn’t really been that unexpected. But can you talk about how you’re thinking about the longevity of the current order inflection? Would you expect order growth to continue to accelerate into ’24? And then how are you thinking about the duration of the up cycle? Do you see the AI contribution as sort of a big gold rush and then it flames out? Or could it last quite a long time?
Giordano Albertazzi: The second – the last part of your question, we believe this is a long-term trend. In a sense that we believe that AI will be pretty pervasive. And this is just the beginning. This is a multiyear, truly many years of cycle – many years cycle, we believe.
Andy Kaplowitz: And Gio, maybe just in thinking about the mix of orders, you mentioned enterprise markets. Maybe some encouraging trends there. How much of the incremental order growth is from hyperscale and colo customers? Are they now a larger percentage of your orders versus enterprise? And then how would you characterize the enterprise market? You mentioned some positive signs, but obviously, rates are higher and concerns around the economy. So color would be helpful?
Giordano Albertazzi: Yes, definitely, colocation and hyperscale are a very large part of our mix and our order intake. And growing actually in terms of speed of growth. So well – very well covered there. What we see is that the acceleration in compute power and anyway, utilization, and volume of data that is further accentuated by AI is going to require some infrastructure also on the enterprise side of the equation. More distributed compute, more edge compute or sometimes even on-prem or proprietary data centers. So clearly, the biggest part of the acceleration is coming, and it will come from the hyperscale, colo and cloud. But we are optimistic and positive about the Enterprise business. Plus, the Enterprise business constitute a big portion of what I was referring to, our more distributed territory go-to-market and type of segment. And we are helped by improving lead times. We are accelerating that part of the market.
Andy Kaplowitz: I appreciate it. Thank you.
Giordano Albertazzi: Thank you.
Operator: Our next question comes from Mark Delaney from Goldman Sachs. Mark, your line is now open. Please go ahead.
Mark Delaney: Yes. And good morning. Thanks for taking the questions. And congratulations on the good results. Hoping you could elaborate a bit more on what you’re seeing in China and some of the causes of the weakness. In a related topic, to what extent you think geopolitics and export restrictions for AI could impact Vertiv in China, even if it’s an indirect effect, Vertiv’s own products aren’t directly put on to any sort of export controllers?
Giordano Albertazzi: Yes. Well, we see China as really a general market situation. More so than anything to do with the export restrictions, in our case. I just want to remind everyone that no data flow through our stuff. The only thing we power and cool IT infrastructure. So clearly, the market is not strong in China right now. And we participate to the market as a very local supplier, as a very local player. The majority of our supply chain is local. So, we operate as a Chinese supplier, and we move with that market. And that market in this moment is not strong.
Mark Delaney: That’s helpful, Gio. And my other question is just around pricing and – came in better than your guidance in the third quarter. There’s no larger tailwinds in terms of pricing in 2023 guidance relative to what you assumed last quarter. Can you just talk a little bit more on what’s been driving the pricing strength that you’re seeing in 3Q and for the year? And to what extent it’s more about mix or like-for-like pricing? Thank you.
Giordano Albertazzi: Well, again, there is a number of actions that we have implemented from a pricing standpoint. But clearly, the mix, the sequence of orders that we execute and a certain degree of being on the safe side and in guiding have all contributed to this price/cost upside.
Mark Delaney: Got it. Thanks so much. And congrats again on the good results.
Giordano Albertazzi: Thank you, Mark.
Operator: Our next question comes from Steve Tusa from JPMorgan. Steve, your line is now open. Please go ahead.
Steve Tusa: Hi, how are you guys.
Giordano Albertazzi: And Steve, how are you? Good.
