Brian Magstadt: Sure. So as we’re thinking about the full year and the various volume assumptions that we’re making, the traditional Q4 seasonality, which means we’re not absorbing as much overhead as we would during, say, second and third quarter, we’re continuing to look at steel market where we’re expecting costs to be at current levels or higher in the future versus some of those headwinds that Mike had mentioned. So the volume assumptions we’re making, the product mix, all are factoring into a fourth quarter that, that we’re expecting to be a little bit better from an operating margin perspective than Q4 of 2022. And with a continued focus on looking at those opportunities where we’re making investments into building technology solutions or Mike had mentioned a number of other initiatives to support our customers in order to continue to further our – those additional markets we’re going after to grow and capture additional market share.
Daniel Moore: Very good. I’ll jump back with any follow-ups or offline. Thanks again, Brian.
Brian Magstadt: Thanks, Dan.
Michael Olosky: Thanks, Dan.
Operator: Our next question comes from the line of Tim Wojs with Baird. Please proceed with your question.
Tim Wojs: Hi guys, good afternoon. Maybe just to start off on SG&A, trying to think about as you kind of go forward over the next year, maybe two years, just how are you kind of thinking about kind of SG&A as a percentage of sales and kind of incremental investments? And I guess, how would you kind of think about managing that if you were in, in kind of a tougher environment? I think this year we’re maybe kind of flattish in North America on sales and SG&A is up kind of nearly 20%. So could you maybe help us with kind of how you would, would think about managing that, that SG&A expense on kind of a go-forward basis relative to sales?
Brian Magstadt: Sure. So one of the things that we want to reinforce is that we’re hiring to support those growth initiatives that we believe there’s a lot of opportunity in front of Simpson, but we are mindful of those expenses in order to go capture those. So as we think about a top quartile within our proxy peers, from an operating income margin perspective, we were looking at balancing how we fund those investments for the growth initiatives versus again, we want to continue to position ourselves in that, that top quartile. And we do note that in Q3 R&D and engineering expenses increased a pretty significant amount. Some of that included investment in some building technology solutions, some additional costs that I wouldn’t necessarily expect to repeat.
But as we think about how we are winning in the marketplace in building technology, in retail, et cetera, it does take some of that above, above-average investment. We also, as Mike noted, continue to add to our national retail team and really want to make sure we’re supporting those customers with the various tools that, that enable them to better serve their customer in addition to the merchandising efforts that Mike mentioned. So as we think about those – the funding of those things, we’re really looking to balance where we can – where we see ourselves in that mid to long term versus where we are today from a top quartile performance perspective and, and really want to be mindful of what we’re investing in is going to drive that long term growth.
Tim Wojs: Okay. That’s helpful. And would you say you’re, you’re still kind of in the phase of maybe over-investing or investing ahead of sales? Or do you think you’re, you’re kind of at a point where you can, can maybe invest kind of in conjunction with the sales growth rate?
Brian Magstadt: Yes. We are over investing relative to our revenue growth at this point, Tim, again, because we see a lot of things that are right in front of us from a growth opportunity, we want to make sure we get the people in place to do it. And we’re all doing that under the mindset of being in the top quartile from an operating income perspective.
