We’re building the first units using the engineering teams that design the product to assemble on to check all the work instructions and tie out all the details so that when we do launch in the volume production, we will have a very robust, high-quality, reliable product to sell to the market. The feedback that we’ve been getting from prospective customers is very encouraging, and they are all waiting for the first LP units to come off the line, go through testing and for us to send out product samples for people to deploy and test themselves. So we’re still very optimistic about it, but we’re cautiously optimistic given the uncertainties in the market.
Chris Mapes: Yes. I think one other comment, and I think Steve just gave an exceptional update on where we’re at with the business. I think one of the other important things I just always want to reiterate when Gabe talked about our extensive application of capital in the business in 2023 for the really reinvestment in capabilities that we have, the EV charger piece is actually a small portion of that. It’s probably only maybe 10% of that capital. The rest of the capital we’re deploying within the company is doing the things that we need to do to be able to meet the demands that we’re seeing both across our consumable line and our equipment line. As well as us continuing to invest in automation and productivity across our platform so that we can accelerate and mitigate some of the inflationary impact as well as drive the productivity that we’re looking for inside our own manufacturing facilities around the world.
Nathan Jones: Thanks for that. A follow-up question I wanted to ask was around the backlog and the backlog burn in 2023 obviously saying most companies burning backlog off this year as supply chains have normalized. Can you talk about the magnitude of the backlog that you’ve brought down in 2023 and whether we should think of that as a headwind to volume in 2024?
Gabe Bruno: Nathan, that’s a great question. I look at our business, particularly core welding to be largely normalized. Still some pockets, I would say, supply chain challenge and our standard equipment offering but I see that normalize. The backlogs that are inherently structured within our automation business is where we see a more stable progression and growing progression as we continue to build out the business. So going to 2024, it’s going to be largely about active orders, order to ship type business in core welding and then the normalization of kind of what we see on the automation side for backlog.
Nathan Jones: So you do not have a headwind from a backlog burn off in 2023. Just trying to frame that up how we should think about ‘24.
Chris Mapes: Yes. We should not see the backlog as a headwind at the end of the day. Look, it’s a great question, and you’re right. There are many companies out there that are having to talk through this particular issue. But when I think about Q4 and when I think about the business and the backlog normalizing, we do not see the utilization of the backlog as a tailwind to 2023 or a headwind to 2024. We really see this as the backlog that we have within the business and do not see that impacting the discussions we will eventually have around our volume expectations for 2024.
Nathan Jones: That’s perfect. Thanks very much.
Operator: Thank you. Our next question will come from the line of Mig Dobre with Robert W. Baird.
