And then multifamily can be off it’s 15% or 20% and you’d still get a full offset of single-family. I’m hoping it’s not that bad on the multifamily and the commercial side. It just doesn’t feel like whatever this next year is coming into that we’re going to have that deep of a correction from a commercial perspective. We certainly will bounce and it would be very volatile in multifamily. The other offset to multifamily down the road, of course, is you are hearing more and more every day about the conversion from office to multifamily. So, that’s going to happen. And that’s more of a remodel activity. And again, we’re very strong in that area. So I would expect that to be a degree of an offset as we get there. And then, I mean, the reality is further down the road, every day you can’t pick up the paper and not read about.
I’m aging myself there when I pick up the paper, by the way. I don’t actually do that. I use my phone. But when we read everything from the journal, really doesn’t matter what you read. You see government stimulus is engaged today across all of North America in driving multifamily construction for the long haul, because the only way to provide affordable housing. And I feel like we’re going to get through whatever this air pocket’s going to be in ’24 or fiscal ‘25, and you’re really going to have a pretty strong fundamental position for housing, all housing, going out into the end of the decade.
Scott Deakin: And that last point is particularly notable in Canada, where the relative mix of multifamily is higher versus single-family in that market.
Mike Dahl: Yes, that’s all very helpful. Certainly the last point. I fully agree with in terms of the importance longer term of multifamily and serving affordability. With these puts and takes, so shifting to the pricing dynamic, if you play that out, you talked about potential for price increases in wallboard as single-family strength and so you’d have potentially the half-inch market weakening and then single-family strengthening how does that typically play out in terms of then what happens with pricing? Would you still expect broad increases across wallboard products or would it be a little bit more targeted in terms of maybe not seeing increases on half-inch, but seeing increases on your single-family business? How have you typically seen that play out?
John Turner: When single-family is strong, it’s the capacity situation. It eats up a lot more capacity. It’s a much bigger part of the overall market historically, so it’s across the board. You know, it’s across the board. I mean, really if you look at the commercial products they actually run slower and so generally speaking if your capacity constrained, because you’re running all single-family product there’s no reason to consider a five-eights, you know, a decline in price in five-eights.
Mike Dahl: Great. Thanks.
Operator: Thank you. Our next question is from the line of Kurt Yinger with D.A. Davidson. Please proceed with your questions.
Kurt Yinger: Great, thanks and good morning, everyone.
Carey Phelps: Good morning.
Scott Deakin: Hi, Kurt.
John Turner: Hi, Kurt.
Kurt Yinger: On the ceiling side, the last couple quarters you’ve talked about kind of the Greenfields and some expanded vendor relationships. Can you maybe talk about how those factors played into the strength you saw this past quarter and maybe also touch on just competitive dynamics and how you’re thinking about any additional kind of share opportunities within that market?
John Turner: Sure. I mean, our organic efforts are absolutely paying dividends. There’s no question about that. I would probably, though, point out more to the strength in the remodel sector and our channel checks telling us that the increase in office remodel and tenant improvement work, smaller work, medium-sized work, suburban work, all those things seem to be strengthening a little bit right now. And so that would really be the bigger driver and probably why we’re expecting again a pretty strong quarter going forward.
Kurt Yinger: Got it, okay, that makes sense. And then just second within complimentary products, can you talk about any internal initiatives you have to maybe expand the strength in those categories across more of the footprint and what you’re prioritizing to grow the business organically at this stage?
John Turner: Yes, it’s both product, it’s both vendor relationships in our tools and, of course, our M&A and tools and fasteners, right? We bought Tanner. We just bought AMW out there in Phoenix. And so we’ll continue down that path from an M&A perspective as well. But we — that hose acquisitions also provide expertise for us to help grow organically. And we’ve been growing our sales teams in this area and our leadership teams in this area across all of our divisions, and both in tools and fasteners, EIFS and stucco, primarily a Southern, you know, Southern United States effort and then insulation. So we’ve been growing as we get bigger we were able to specialize our sales force and that’s fairly meaningful when you’re able to do that.
When you can take these types of products and not have to have a generalist out there selling them with the key volume still for most of our generalists obviously or our core products. So when you get big enough and have scale and you can afford to have the sales forces out there dedicated and expertise dedicated to this complementary product mix, we’re seeing huge success with that.
Kurt Yinger: Got it. Okay, appreciate the color, guys. Thank you.
Scott Deakin: Thank you.
John Turner: Thank you.
