“But I do see that that’s a big focus of ours. We have got to be really pushing that hard to drive gross margin improvement over time.”

In context

“chievable. As I laid out sort of the math there and earlier in this conversation, $13 billion worth of cost of goods, if we do 2% net productivity, it’s more or less $260 million. If we did it every year, it’s sort of a point a year of gross margin. Of course, there is lots of dynamics here. You’ve got mix happening in the business. You have new products coming in. We have got kind of, as next year, middle of next year as we exit PFAS manufacturing. You have some under-absorbed costs within those factories we’ve got to take care of. Eventually, Solventum is going to move some of their production away or in the TSAs will wind down. We’ve got to absorb that. So there is going to be lots of puts and takes. So it won’t be a linear journey over the next number of years, a growing gross margin. But I do see that that’s a big focus of ours. We have got to be really pushing that hard to drive gross margin improvement over time. Our R&D level is about 4.3%, 4.4%. I mean it could drift up, it could drift down a little bit in the tens of basis points, it’s not in – or tens of basis points, it’s not a big mover. SG&A could see some leverage over time just based on volume. But I think the bigger driver in the future is going to be coming out of gross margin. And I remind you, I am focusing on growth and margin expansion for sure, working the pedals across both of them. But as I step back, driving growth is also a margin driver because of a high drop-through we get on incremental volume. So that’s kind of the way I see the future playing itself out. I don’t think today, I’ll get much more specific. We’ll lay this out a little bit more clearly to investors as we turn the corner in ‘25 and come back and host an Investor”