John Sourbeer: And then, I guess, even beyond ’24, any color on long-term targets?
Kevin Brady: I mean, it’s just down. I mean, we’ve kind of said if things kind of normalize, like something in the high teens, but it remains to be exchange just in terms of what the environment and what hiring looks like too.
John Sourbeer: Great. Thanks for taking the questions.
Operator: Thank you. [Operator Instructions] Our next question will come from Eric Coldwell of Baird. Your line is open.
Eric Coldwell: Thank you. Good morning. Just a few quick ones here. On the wage inflation, my understanding was that it had peaked a few quarters ago and was still elevated, but starting to perhaps moderate a bit. Has that continued? Do I understand that correctly?
Jesse Geiger: Hey Eric, that’s right, kind of mid-to-high single digit.
Eric Coldwell: Jesse, what do you see on the next 12 months? Stable at these levels, perhaps some continued moderation, just any sense on what the outlook is?
Jesse Geiger: Yes. I think stable at these levels. At this point, I don’t see anything that would drive that higher or lower, though the markets from a hiring standpoint is more stable than it has been in the past. We’ve also had good success with lower turnover. So employee base is stable. We’re continuing to grow, but wage pressures have moderated a little bit, and I would expect it to be fairly consistent.
Eric Coldwell: Okay. And then, in terms of cancellation profile – if I missed this, I apologize, but have you returned fully to normal levels, which I believe are somewhere in the 4% to 5% of backlog or what’s going on with the cancellations, anything abnormal there?
Jesse Geiger: Yes, normal level. Pretty well back to normal at least for the third quarter and towards the lower end of that range.
Eric Coldwell: Okay. And then, hit rate, my understanding from our visit a month or two ago was that hit rate was back to solid but normal levels. Has that continued? And have you seen any change in rescue award activity. There was a lot of disruption in this sector over the last couple of years, and some of your peers had obviously were giving up some work. I’m just curious what the rescue activity looks like these days.
August Troendle: No particular rescue activity. It’s been very little. And yes, it’s been pretty mild.
Eric Coldwell: Okay. Last one, and I hate to go there. It’s unfortunate circumstance, but I am curious about your Middle East exposure, just in case the situation that’s unfolding continues to escalate, what kind of concentrations or exposures might you have in the Middle Eastern region?
Kevin Brady: Yes. Thanks for asking, Eric. All of our Israeli employees are safe and accounted for people working remotely at this point. Our concentration there, it’s less than 1% of our total headcount and less than 1% of active site. But activity is continuing, and we’re keeping a close eye on it.
Eric Coldwell: Okay, thanks very much, guys. Congrats on the good performance.
Operator: Thank you. [Operator Instructions] Our next question will come from Jack Wallace of Guggenheim Partners. Your line is open.
Jack Wallace: Hey, thanks and congrats on the quarter. A couple of questions here, one around headcount. It looks like we’re trending to the mid-to-high teens growth rate this year. And given the strength of the RFP awards in the pipeline, you mentioned earlier, maybe you think this is the right level of headcount growth over the next year or so? Or maybe said a different way, are we on plan with hiring now or is there any catch-up that’s needed? Thank you.
