Nathan Jones : Maybe you’ll have to add a discussion on the revenue synergies from Idrica to the revenue synergies from Evoqua at the Analyst Day next year.
Matthew Pine: Yeah, I think, but I think it’s a good comment, because we do think the platform has scalability into the industrial and building services business. Obviously we’re going to stay focused on utilities at first. So we stay focused and deliver, but it does have ability to expand into industrial.
Nathan Jones : Great. Thanks for taking my questions.
Matthew Pine: Thank you.
Patrick Decker : Thank you.
Operator: We’ll take our next question from Joe Giordano with TD Cowen.
Joe Giordano: Hey guys. Good morning.
Matthew Pine: Hey. Good morning, Joe.
Patrick Decker : Hey. Good morning Joe.
Joe Giordano: Hey, Patrick, Sandy. I mean, thank you for everything. Congratulations. And with five simultaneous calls going on today for me, being done with earnings calls sounds wonderful. So I’m very jealous for both of you. Congratulations.
Sandy Rowland: Thank you, Joe.
Patrick Decker : Thanks Joe.
Joe Giordano: Bill, maybe I’ll start with you. Like as you come over from IDEX and you kind of want to bring the best of what that firm had, like how do you kind of kick-start an 80/20 kind of culture here? What’s involved in really doing that and driving it to be like at the forefront?
Bill Grogan: Yeah, no, a great question. And the team had already started that initiative before I got here. They recognize that it’s a core tool that ultimately frees up organizational capacity, right. Its focus is to eliminate complexity, focus on the things that matter most. There’s obviously the core analytics from a product and customer perspective, but thinking about more broadly and then leveraging those tools to help enhance our strategy. So we’re doing it very much like we did at IDEX, piloting it in a couple of locations. Getting folks familiar with the tools and the concepts and then rolling it out more thoroughly as we have initial successes and wins. So it is something I think that’s going to have a tremendous amount of value, both on the top and bottom line, creating velocity to innovation for our customers and creating longer term returns for our shareholders.
Patrick Decker : And I think – this is Patrick.
Joe Giordano: Go ahead, Patrick.
Patrick Decker : Sorry, sorry, Joe. That’s all right. I just add that I think the way I would encourage investors to look at this is we’ve spent the last decade building a platform that customers can access for their needs, which means growth. And when you’ve built that platform, then you have something to actually apply 80/20 to. And so that’s why right now is the perfect time for this combination to be coming together and Bill coming in with his toolkit. The team had already been working on this, but I think what he brings to the table is going to be incredibly valuable to the enterprise in terms of value creation.
Joe Giordano: Is that concept even more applicable to the Evoqua platform? I just think of them as having been built from like almost a, we have everything kind of ethos, right, of being nationally available and having tons of different products. It just feels like given the breadth of SKUs there, like maybe something like this, whether it’s keeping everything and just charging appropriately or like it just feels like it might be more appropriate for that business. Is that fair to think of it that way?
Bill Grogan : I think on balance, it’d be similar to the opportunities we have at Xylem that it’s not hugely differentiated there. Obviously there’s a – 80/20 is applicable to all different business models. So the service aspect versus a product based organization, it’s still a tool that will drive significant value.
Joe Giordano: Okay. And then just last for me, is the infrastructure order rate, do you feel like that’s stable here? It’s probably a number that caught most people by surprise being that strong. So is that in dollars kind of a good number?
Matthew Pine: Yeah, the water infrastructure order rate? Yeah. It included a couple of big projects in custom pump. But in general, yeah, we’re seeing good demand, resilient demand, both in developed markets and ex-China and emerging markets. So we feel pretty good and it’s been pretty resilient.
Joe Giordano: Thanks, guys. I’ll pass it along.
Matthew Pine: Thanks, Joe.
Bill Grogan: Thanks, Joe.
Operator: We’ll take our next question from Andy Kaplowitz with Citigroup.
Andy Kaplowitz : Good morning, everyone.
Matthew Pine: Hey, good morning, Andy.
Andy Kaplowitz : Patrick, Sandy, congrats. We’ll miss you. Matt and Bill, we’re looking forward to working with you. Maybe I could start. It just doesn’t look like it, but are your customers outside of China changing their behavior at all based on higher interest rates or economic uncertainty? Your new public competitor in the water space mentioned that some North American municipalities are holding off on plant upgrades and some investments. But it doesn’t seem like that is what your utility or industrial companies are doing. But maybe you can give us some more color on what you’re seeing.
