Jim Meyer: Matt, this is Jim. It’s going to be a little faster than gradual. I’ll start with that. Without getting too pinpointed here, a lot of our supply chain issues, not all of them, but a lot of them are with the Tier 1s in the United States that have struggled with labor and hiring. They, in turn, have also struggled with their material suppliers, who would be our Tier 2s and 3s. So, it’s just — it’s been the whole assortment of issues that everybody reads about in the papers every day. And it’s affecting everybody’s output and on-time delivery. And obviously, when parts don’t come in on time, our cars don’t get built the way they were intended to get built, and they don’t ship when they’re intended to be shipped, so it just adds all sorts of unwanted inefficiencies on our end.
Some of the positives in it is first of all, by having full visibility for all practical purposes and to what we’re building this year, and frankly, at this point, even what we’re going to be building as we look at Q1 2024 gives us a much, much longer planning horizon with our suppliers. And that is tremendously helpful to both parties. So, that’s an important improvement. A second piece is we’ve got our fabrication shop online, as Mike mentioned in his comments around where we’ll be investing further monies this year. We’re essentially planning to double the capacity or internal capability of our fab shop over the course of this calendar year. And the more that we can make, the more that we control, the better it is for our on-time performance.
So, that’s a second big opportunity. And again, the first piece, which is now in effect, is the fact that we have a fab shop up and running and feeding our assembly lines. But coming as we proceed across the year will be additional capability to that. So, those are two big factors. And then, of course, through the history and what we went through all of last year, we have obviously a very good understanding of where the chronic pain points are. And the supply chain team has worked around that to some extent. So, it doesn’t leave us completely, but we expect it to be substantially better managed this calendar year.
Matt Elkott: Okay. Got it. That’s very helpful insight. And then, maybe switching back to the balance sheet. Sorry if I missed it, but you guys had a $20 million reduction in balance sheet inventory. Can you just walk us through what drove that?
Mike Riordan: Sure. This is Mike. So, part of that inventory reduction is you’re comparing year-over-year steel price. Inside inventory was at a very high rate in 2021, and as we moved our way through 2022, we saw a reduction in that cost of inventory flow itself out as it’s replaced with lower-cost steel as the crew moved down throughout the year.
Operator: There are no further questions in the queue. I’d like to hand the call back over to Jim Meyer for closing remarks.
Jim Meyer: I’ll keep it brief. Thank you all for joining today’s call. Have a great day, and we’ll talk to you next quarter.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.
