The first question, yes, we are right on track. We are trying to build 15 crews by the end of this year. And we are racing – we have got our 14th crew already onboard and training. We have got parts of our 15th crew onboard right now, and we expect to have them in place by the end of the year. And next year, we are looking at some growth next year, and we will just grow our teams based on what that growth is to support those project needs.
Jerry Revich: Super. And then nice to hear the constructive outlook on ‘24. Can you just expand on the growth levers that you have in utilities? It sounds like pretty good pipeline in renewables, but utilities, as Ken mentioned, it can be hand to mouth. So, is it visibility on the margin profile improving or what gives you the constructive growth comments visibility that you alluded to in the prepared remarks for ‘24?
Tom McCormick: One is definitely that. I think with these MSAs that we have renegotiated, some of those took – went into effect in ‘23, the balance some going to effect in 2024. So, we had that working in our favor. The other thing is we have made a lot of changes within our power delivery group, brought in a lot of talent. And we expect to start seeing – when we are seeing it now as we close out ‘23, we are seeing margin improvement as we close out. You can’t do a whole lot with troubled projects, you have got to get through them. But in the new work that they have taken on, they are performing well. So, we expect that to carry on into 2024. I think our communications business is performing extremely well. I think sometime during the course of the year 2023 they had one project that was a little bit of a draw on them, but they are finishing – they finish that job up and that’s behind them for the most part.
In gas, it’s not a fast-growing market for us, and we will probably be fairly flat with maybe some growth in that business. It’s a well-performing business for us, and they perform extremely well. Yes, we see and we do. We see our project work increasing in our power delivery group, let me step back and say that.
Jerry Revich: Good. Super. Thank you.
Operator: Our next question comes from the line of Adam with Thompson Davis. Adam, your line is open.
Adam Thalhimer: Hi. Good morning guys. Congrats on a solid quarter. You made a comment about $14 billion of industrial projects, can you just flesh that out a little bit?
Tom McCormick: It’s just a funnel of the projects that we have identified that are kind of fit in our wheelhouse that we are going to – we will pursue a portion of those. We definitely aren’t going to pursue $14 billion worth of work, but it is an addressable market for us. And a lot of that work, I think I noted in my comments, about 80% of that work is in our engineering and industrial construction, and they are really right in our strengths. The size and the type of project work that we have an expertise in, which is really what we are focusing on and trying to make sure that we improve our margins and continue to see margin expansion.
Adam Thalhimer: And are those 2024 construction starts?
Tom McCormick: Some of they will carry into 20 – they will be 2024 for sure, and they will carry into 2025. When the – if you get into the EPC, then you have a period of four months to six months, eight months where your clients doing design or we are doing design on the projects before they move to the field. Some of these projects are projects that will go directly to the field.
Adam Thalhimer: Okay. And I hate to ask this because we have talked about this extensively. But I still don’t quite know what the message is on solar. Like I think that’s still a growth market for you guys next year, but I just kind of wanted to make sure.
Tom McCormick: Most definitely a growth market, but when you get to $1 billion, $1.5 billion in size, you are not going to continue to grow at 100% a year. So, we continue a disciplined approach to hiring and developing our teams and the work that we take on. And so we are still expecting 20%, 30% to 40% growth in that business in the next year.
Adam Thalhimer: Okay. Perfect. Thank you, guys.
Operator: Your next question comes from the line of Brent Thielman with D.A. Davidson. Brent, your line is open.
Brent Thielman: Yes. Great. On the utilities business, I guess the question in thinking about ‘24, I mean if the productivity issues and challenges in PLH sort of cycle out this year, you have got the restructuring pricing terms on contracts starting to take hold in ‘24. Why wouldn’t we see sort of a margin range towards the upper end of your target next year, if you are also getting the benefits of sort of more project work and power delivery? Just trying to kind of bridge the gap, why we wouldn’t see a significant increase in margin in utilities? Thanks.
Tom McCormick: That’s exactly what you are going to expect, and that’s where we are trending to.
Brent Thielman: Okay. The vast utilities see stronger and will be a bigger overhang to that [ph]?
Tom McCormick: Yes. We do expect that in ‘24.
Brent Thielman: Okay. And then, Tom, I mean just – sorry if you covered it, but what’s the outlook for the pipeline business next year? I mean it sounds like it’s come in a lot better than you had expected in ‘23.
Tom McCormick: They have a lot of opportunities on smaller projects. And what I mean by smaller is, their projects are less than $100 million. They are $50 million, $60 million, $30 million projects. As long as we win our share of that work, it’s – execute on it, which we have been able to do this year. Then they will be okay. It’s just not going to be – it’s still not a great market for pipeline and it’s not going to be, I don’t think for the next 2 years minimum. But our guys has right-sized their businesses and they are performing on the work that they have won. They just got to continue to do that.
Brent Thielman: Got it. And Tom, just back on utilities, the comment about just the talent acquisition, obviously, a pretty competitive market right now. Maybe you can talk about the things you are doing to acquire that talent, should we think it’s somewhat of an inhibitor to your growth next year in that business? Just kind of want to put that in context.
