“On material costs, our expectations are that material costs will decline in 2025; however, there are some offsets within manufacturing costs which go the other way.”

In context

“ll a benefit year-over-year, and all the cost is in E&T? Maybe if you can just provide that kind of framework from the fourth quarter to how to think about full year ’25 price cost. Andrew Bonfield: Yes David, if you recall, actually in my comments I did call out within CI negative absorption in the fourth quarter as we did reduce CI inventory, so manufacturing costs were also negative in CI. In E&T, most of that was a function, actually, of putting more labor in the factories to get more machines out the door, or more engines out the door at the end of the year, and that obviously reflects the demand we’re seeing. Obviously, remember that we are--you know, we are still trying to build up capacity particularly on the large engine side, and that really is what’s driving that in particular. On material costs, our expectations are that material costs will decline in 2025; however, there are some offsets within manufacturing costs which go the other way. Some of that relates to volume and absorption as a result of that, which means we don’t get the cost price offset that we’ve had in previous years. Most of that is the reason and the rationale by segment for that. So yes, material costs will be favorable but manufacturing costs will be broadly in line with our expectations. Remember also, other things come in, mix and so forth as well, and finally just one thing to remember, the depreciation I called out, actually most of that is within manufacturing costs as well. Operator: We’ll go next to Jerry Revich at Goldman Sachs. Jerry Revich: Yes, hi. Good morning everyone. Andrew Bonfield: Morning Jerry. Jerry Revich: Jim, Andrew, I’m wondering if you could just talk about your solar turbine lead times, and how are you thinking about potentiall”