Shashank Patel: And the other area, we saw strength in OEM channels in Germany, but that started softening up as well, and that’s what we anticipate in our fourth quarter outlook.
David Tarantino: Great. Thanks guys.
Shashank Patel: Thank you.
Bob Pagano: Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Michael Anastasiou with TD Cowen. Your line is open.
Michael Anastasiou: Good morning everyone. Thanks for taking my question.
Bob Pagano: Good morning.
Michael Anastasiou: Just wanted to hit Bradley one more time, just curious on how this asset fits into your smart connected strategy. I know you mentioned exposure potentially just some new distribution channels, but just specifically kind of on the value-add front, just curious if there is any specifics that you could provide there? Thank you.
Bob Pagano: On the Spartan connected front, I think that’s an opportunity for Bradley. I mean they have smart products, obviously, with their touchless faucets, etcetera. But I think what we will bring to Bradley is our connected strategy. I think we can leverage our connected strategy with them, and we will further their initiatives around that area. So, that’s a key focus area. We have already – teams have been already discussing that and leveraging our capabilities on that. So, I believe that’s exciting and can tie into our overall ecosystem.
Michael Anastasiou: Great. And maybe you could just dive a little bit deeper in terms of like the end market breakdown. Are you able to provide any specifics, whether it’s like industry, geography or aftermarket profile?
Bob Pagano: Yes. So, primarily North America, I would basically say half is new construction, half is repair and replacement. And as we talked about before, they are highly in institutional public works and in the industrial channels, which were all favorable, which we liked. So, those are nice markets that we play nicely into.
Michael Anastasiou: Great. Thank you. And just one more, if I may, I forgot this was covered earlier in the call, but what was price contribution for the quarter?
Shashank Patel: Low-single digits in the third quarter.
Michael Anastasiou: Great. Thank you so much.
Bob Pagano: Thank you.
Shashank Patel: Thank you.
Operator: Your next question comes from the line of Joe Ahlersmeyer with Deutsche Bank. Your line is open.
Joe Ahlersmeyer: Hey. Good morning everybody. Thanks for taking my questions.
Bob Pagano: Good morning.
Joe Ahlersmeyer: My first one is on the commercial business, I fully appreciate your short-cycle nature here and pointing to the Dodge and the ABI, I understand that as well. But how are your conversations with your customers going at this point? Does that rhyme with what you are seeing in those indices? Just any color you could add there about further outlook into the early parts of next year?
Bob Pagano: Yes. I think what we are hearing from our customers is, especially the GCs is they are busy. They have got a strong backlog. And although they are concerned way out, they are less concerned in the near-term based on their backlogs of what they have right now. So, I think the one area we are watching and I noted is the multifamily side of the business because it’s been strong, a whole bunch of capacities coming online, and we are watching that very carefully. So, that’s probably the area we are watching, but there is still some healthy backlog, especially regionally. Again, you have to look region-by-region in each area, but so far, so good, but we’re reading the same thing. So, sooner or later, we believe some of this is going to slow.
I don’t expect a major drop, right. We would see that based on backlogs and we also are watching new construction hiring, and that’s also been decent. So, again, we watch all of those leading indicators as proxies for what it could be 3 months, 6 months, 12 months out.
Joe Ahlersmeyer: Right. I appreciate you calling out the timing dynamics in multifamily. We have heard from others that it’s possible even with the starts that you are seeing now that backlogs will get you through potentially most of 2024. Curious if you would maybe agree with that, particularly for some of the later stage things for multifamily? And then just a follow-up question on your costs, I think you called out inflation in the quarter. I am just wondering if you would expect that to turn to deflation next year and if that should hit a little bit faster since your inventory turns are improving?
Bob Pagano: I think on the multifamily front, I think there is confidence maybe into the first quarter of next year. At that point, I think everybody continues to look at what their backlogs are and whether they will come off of a multifamily construction and go into institutional, so again, labor shifts and construction shifts to where the markets are. So, again, we are not hearing directly multifamily, but they are saying it’s not as robust as it was and their backlogs are coming down.
