“And we look to get more of that back over the course of 2024.”

In context

“think about some of the areas where we're most focused, it's really around reducing cost in our supply chain, while at the same time, increasing resiliency in the supply base. Over the longer term, we'll also work on designing cost out of our equipment. And so if we break that down into some of the subcomponents, we'll have opportunities both in raw material and freight costs, which were tailwinds for us in the back half of 2023. Those will continue to be tailwinds for us in 2024. And then logistics will be another area of focus. And I think we're seeing that come down across really all forms of logistics from rail, ocean, trucking and airfreight as well. We go back to 2022, we saw our air freight expense increase almost sixfold during that year, and we got about 1/2 of that back in '23. And we look to get more of that back over the course of 2024. Stephen Volkmann: And just to be clear, you're expecting that within that 35% decremental, you're expecting kind of all those pieces of goodness that you just described? Brent Norwood: Yes. Certainly, our guide would contemplate achieving further reductions, and that's already included in our 35% decremental. There's certainly going to be opportunities to continue to control decrementals with further supply management and cost activities for 2024. Josh Jepsen: Yes, Steve. One thing I would add is, I mean, if we compare back to periods when we've been at or around mid-cycle, which we're projecting '24 will be, our margins will be nearly double net income, about 2.5x greater. So I mean, if you think about being around mid-cycle, delivering this decremental and significant improvement fro”