ways. We have them in Mexico now, coming in virtually. Obviously, we all know the importance of the factory in Mexico for Terex, so I think to have you on the ground there right now is terrific, and we're fortunate enough to have the CEO of Terex, Simon Meester, and the CFO, Julie Beck. So who better to give us an on-the-ground perspective of what's unfolding in Mexico for your factory? But with that, maybe let me step back and sort of do a couple bigger picture questions, if you don't mind. I've seen you would highlight that you feel your total addressable market is about $34 billion, which would mean your market share in totality is less than 15%. So when I think of your opportunities for M&A, are there enough opportunities you'd argue then, with that relatively small market share? Even though people think of you as we're one, we're two in a lot of end markets, you still have a lot of headroom within those verticals, generally speaking. Should we think of M&A within the verticals that we already play in, or Simon, obviously, you know, I know you've been at Terex for a long time, but recent as a CEO, does the M&A scope for you go beyond the current verticals? Yeah, I would say yes to both questions. We certainly, to your point, you know, with $5 billion in a $34 billion addressable market, $27 billion to play for, there's plenty of white space within our addressable markets. Some of that addressable market is a little bit easier or more actionable than others. So we're not just looking at our current addressable market, we're also looking at adjacent markets, and not just inorganically, but also organically. An example is the Green-Tec brand that we just launched. We continue to find new addressable market for, for example, some of our environmental solutions, and what we're doing with the Green-Tec brand is we're packaging basically multiple products from different verticals- ... within MP and positioning that into a new vertical, which is vegetation management for us. So we see a lot of white space, but to come back to your original question, we think there is organic and inorganic growth opportunity within the current addressable markets, but we're also looking at organic and inorganic expansion outside of our organic, our addressable markets in adjacent spaces. As I said, a long time Terex employee, recently named CEO, you've seen a lot of evolution, you know, in Terex. I'm gonna go back to, you know, I won't bore with the history that you're well aware of, but where we are today, right? Better cash flow, better balance sheet. I'm curious, though, the years that you've been at Terex and now you're in the top position, what are the top couple of things that you feel Terex needs to improve upon? Yeah, I would say, under John's tenure, I think we, we've gone through a lot of transformational change. So I think, you know, if you would have to summarize it, John was probably very much the fix-it CEO, and I think I'm gonna have to be the find-it CEO, if you will. So I think, you know, if you think where we are now in terms of our portfolio, we have pretty much seven kinda verticals, you know, grouped into two segments, MP and AWP, but all of those in all of those verticals, we operate at double-digit margins. So I think my number one objective should be to really accelerate growth, quite frankly, and, you know, and I think we've earned the right to focus on growth. Obviously, we want sustainable growth, we want it to be sticky, and we want it to be profitable. But I think my tenure will be much more about growth because we've done a lot of the transformational work in the last 10 years, and quite frankly, we're a completely different company now than we were even 5 years ago. That would be one, growth. Secondly, obviously, we don't like where our multiples are, to be very honest. We think we're undervalued. We think we have a strong story. We think we are, obviously, like any CEO would say, we think we are a very appealing and interesting investment opportunity, so I'd like to, another thing I'd like to work on is to just get the message out there on what we truly are. We are no longer, you know, a construction and mining company. We're very much a, you know, an industrial, a diversified industrial. And so that would probably be another area that I would want to focus on. And then I think, you know, continue to strengthen the portfolio. We have businesses that are market-leading in all of the spaces that they operate in, and I think there's plenty of opportunity to continue to strengthen the portfolio and just make us even stronger overall. So those would be my three areas. You've highlighted in the past the desire to make the Materials Processing segment a larger part of the company. Within the AWP segment, you're obviously, especially where you're sitting right now, Mexico, there's probably a stronger push in telehandlers than we've seen from Terex in the past. But before we focus on that, can you take us through the five verticals within MP if you had to force rank the level of attractiveness one through five? Yeah, so we have Aggregates, Environmental, Concrete, Material Handling, and Lifting. Those are the five verticals, and I would say if you think about it, it really depends what markets you look at. If you look at North America, I would put Aggregates, Environmental, and Concrete at the top. Aggregates because we just have so much, we have a strong pull from the infrastructure spending in North America. Environmental is our fastest growing vertical, but also Concrete is doing really well because it's a very North America-biased business. But then if you go to Europe, obviously, you know, it's a little bit more Fuchs and Aggregates. And then if you go to India, it's a little bit more Lifting and Aggregates. But I would say Aggregates is still our bread and butter, that will be at the top. And then environmental, probably from an offensive standpoint, is up there as well because we believe there's a lot of white space in that area. And then concrete material handling and lifting, I think especially in the emerging markets, we still have a lot of upside. So if you think about the maturity of the markets we operate in, India is very much at the beginning of the infrastructure cycle. They're building, you know, their infrastructure right now, so a lot of businesses that help build, you know, we can bring that and localize that to India. And then a lot of businesses that need to... that help recycle or are more towards the end of the value chain, you know, are businesses that are very well positioned in North America and Europe. And even in aggregates, you know, we obviously, our products provide aggregates that sit at the beginning of the cycle, but we also use mobile crusher for, you know, when we demolish buildings, and, when projects come to the end of their life cycle, that's where we also have a strong play with our mobile crushers. So I kinda like the diversity of the portfolio, but, that's how I would rank them by geography, David. So if India is the largest opportunity and environmental is the largest opportunity, just call it globally, would we be surprised to see M&A not in those two categories in the next year? I think you'll see us focusing on M&A within MP, and you'll see us focusing on M&A for Terex overall. I think those are two different things, not mutually exclusive. Okay. You're in Mexico? Yes. How long. Well, have you had a chance to meet with the operational people there and get an update? So I just walked in 60 minutes ago, and I've been on the phone with my daughter because it's her birthday today. That's what I've been doing first. I'm at the beginning of the day here, and I'm eager to see and meet with the team. I'll do that right after this call. But I can already tell that the team has been making a lot of progress. Just to give you, David, you'll appreciate this, and I know you've been here, so you know the facility. But you know when we moved our production from OKC to Monterrey, which was the plan all along, and we started this journey three years ago or so, we were barely building five telehandlers a day. And this morning, I walked in, and, you know, we're planning to build almost triple that today. So, I was pleased just to see at a high level the numbers that I was looking at today as I walked in. But yeah, I'm gonna meet the team right after this call. Have they given you any update before you came down on the supply chain issues that you know, some of the issues on trying to ramp up production further? Yeah, so it all now comes down to this, and I should let Julie weigh in as well because obviously it ties to our guide a little bit for 2024. But it all comes down to this, you know, what John used to call the golden, you know, the golden screw. It now comes down to just one part number that you're short on, and then starts, you know, continues to disrupt your output. And this, since this is the largest facility that we have built, absorption is obviously a key topic for us in terms of how we manage our P&L. But the good news is, is that we come from about 8,000 part numbers arriving late in the, at the height of the pandemic to below 2,000 a month now. So it has kind of improved 4x, but we still have a little bit of a disruption. But here in Monterrey specifically, it's now down to just one or two part numbers that are... continue to give us hiccups, but I'll let Julie- Yeah, no, that's correct. And there's a couple of, you know, we talked about some engine covers being an issue, and so some of those supply chain issues do exist, but getting better. There's lots of production going through the facility, and so as it takes a while to ramp up this facility, and as Simon mentioned, you know, higher production rates today than we saw in Q3 and Q4. And so as we go throughout the year, production increases and output increases, and that will improve the financial performance of the plants and allow it to absorb the expenses of the new facility as we go forward throughout the year. And how are we addressing the one or two key supply issues? Are we finding alternative sources? Are we investing in the supplier? And are we creating partial machines waiting for those parts, so when the parts show up, might not be the most effective, maybe margin-wise, but you can get the product out the door quickly? Yeah, all three, and then I would add one more. On certain critical supply items, we also in-source some of it, just so that we're not entirely dependent on our supply chain. Is there a pinpoint date where if things go well, the ramp is particularly notable? I would say that, you know, it's a gradual ramp-up, and as we said, you know, I would think that when we get to Q4 or so, that we should have this facility up at what we expected for production. Yeah, so we expect headwinds first half, tailwinds second half. I think that's high-level, kind of the plan. ... And speaking about, we said earlier, inorganic, organic opportunities, can you lay out for us why you're putting more money into the telehandler business? What kind of capacity are you adding? And can you at least give us a rough framework, the amount of capacity that we think is coming in from, you know, JCB out of San Antonio, we know JLG in Tennessee, some of the Chinese players that are, you know, bringing a supply base with them and at least talking about some sizable numbers in Mexico. Just if you can help us with that at all, it'd be greatly appreciated. Yeah, I mean, it's a question we get a lot, and quite frankly, I don't know if I have kind of figured it out myself yet, where we stand as an industry. I know where we stand, and we like our position. We're not necessarily expanding capacity. We're basically just replacing high-cost capacity with, we think, more competitive cost capacity, and we shared kind of what we're doing in terms of square footage. But some of the headlines, I can't really make sense of myself either, David, and how that computes, to be very frank with you. All I can speak for at this point is really where we stand, and we like what we're bringing online, and it's not necessarily to expand. It's just to replace. So overall, David, you know, we add very little with... You know, when we take off our facilities in the north of the United States, such as Oklahoma City and Rock Hill, and move things to Monterrey, our overall footprint, you know, goes up, but just slightly, you know, 10-15%, something like that. The overall margin impact, I know the old bogey, but I'm curious to get an update. The overall impact what Mexico can bring to AWP margins and the timing you would expect that to show up? So we would expect, you know, there to be, you know, as we exit 2024, and the ramp-up is complete, and the facility is operating efficiently, we would expect the 200 basis point margin improvement going into 2025 for AWP business. Okay. A little bigger picture, price cost. I'm curious what you're seeing on a, what's priced in the backlog and the pricing on new incoming orders, and happy, free to take us around the different businesses. Obviously, it's different for each geography, let alone each business. So I'll let you answer that as you wish. So, you know, David, our goal, again, you know, is always, you know, to be price-cost neutral. And so we would, you know, be talking about, you know, passing on increases, you know, for things in our supply chain for logistics, labor costs, et cetera. And we have, you know, talked about, in total, for Terex, you know, roughly that low double digits in pricing for 2024. What's coming in today for new orders? Are they getting any pricing, or is it more they're holding price, and the backlog that ships is enabling the total low single digit? Well, so we would, you know, as it goes by business, you know, our, our MP business, you know, which is, you know, historically has been, you know, a book one quarter and build the next is very dynamic in pricing. So they would be reflecting, you know, the current costs and pricing accordingly as they go through. And from, you know, an AWP perspective, you know, some of these, you know, the backlog would be at, at, you know, 2024 pricing, is what the Genie business would be at. Low single digits. Also, the utilities business within AWP, which sort of gets lost a lot in the conversation, you know, I feel like we've been hearing for, you know, many quarters about, "Oh, it's constrained." And I look up, and you see in the filings, it still grew 22%-23% each of the last two years. Can you update us again on, A, the growth profile of that business for you to say up low twenties is constrained, and then where are we on reducing that constraint? So I'll start. We continue to, you know, to have issues of marrying up the right body with the right chassis to put some of the throughput through the Watertown facility. So we still are supply constrained, particularly in bodies. This business, you know, grew nicely in 2023 and 2022, as you mentioned, and we think that we can grow this business, you know, to $700 million plus, and look forward to doing that as constraints are mitigated. Any updates on those constraints improving or lessening? So I think most of the constraints, other than the ones that Julie talked about, are kind of behind us. It's now more just tied to labor than material. And you know, obviously, we're in South Dakota, and we're looking for labor. You know, we're catching up on the backlog. We're currently taking orders for 2025. I think it will be way into 2024 before we will be fully unconstrained again. That's my prediction, second half 2024. Just to help us with volume versus mix, that up low twenties, how much of that was volume? Are you talking utilities or now all Terex? Just utilities. Yeah, I mean, it was more volume than price in 2023. I'd say it's, you know, weighted maybe more two-thirds volume, one-third price. Mm-hmm. And then with an MP, the large aggregate business, can you help us with a little bit of the lay of the land? I know that's a very global business, but crushing and screening in North America, however you see it relating to infrastructure projects- But can you touch on the European market as well, which is obviously pretty important for that business? Yeah. So for us, it's really within MP, it's a story of aggregates in North America versus probably Fuchs and cranes in Europe. And so we see Fuchs and cranes, particularly tower cranes, Franna not so much because it has such a strong base in Australia, but we see Fuchs and cranes in Europe struggle just because of their dependence on the European market, and it's mostly Germany and the U.K. that's pulling it down. And then we see really the infrastructure momentum in North America being the offset, and it's particularly helping us in our concrete business, and it's also helping us in our, in the aggregates business. But since we're back to kind of a book-to-bill kind of cadence in Aggregates, it's really gonna come down to kinda how the bookings are gonna drop in the second quarter of 2024 on how much tailwind that's gonna give for the remainder of the year. Every time I hear Franna is doing well, I always think that's a very high-margin business. I mean, over the years, Franna, that pick and carry crane business, can always be a pleasant surprise for the margins. But Fuchs is also a pretty profitable business when it's strong. But when I hear that mix, unless I'm understating what tower cranes' margins are, I assume they're not that high, it feels like a decent mix of businesses if you had to tell me what's up, what's down for 2024. Is that- I would certainly- ... fair? I would certainly say mix is not our issue in 2024. I would agree with that. In, within MP. And then we'd also say that, you know, all the businesses are over double-digit, you know, at this point in time, in market. That's a great point. Yeah ... is that, since the standard deviation between the way these businesses operate is now so narrow, the mix impact itself also swings less. Yeah, I'm just trying to reconcile the down margin guide- ... for that segment. Yeah. Well, just some faster-growing environmental sales, you know, is really, you know, it just- That's what brings that down just a tiny bit. Yeah, just environmental can't be that big at this stage. I was just kinda curious if that's some- ... some potential upside in the guide, or at least something that surprised me a little bit on the margin. Can we talk about AWPs? You know, I think the prudence some of the rental companies are providing their CapEx might be positive for the rental industry, but initially when you and Oshkosh put out your aerial segment guides, you know, people were thinking, "Oh, it's very conservative," especially given the size of your backlog. But since then, like, you know, this morning, Ashtead, their CapEx guide for the year of May onward, you know, down 28% or so. Herc, H&E, you name it, I mean, they're kinda down 30%. Now, URI is closer to flat. I'm just curious, what are you seeing on the new orders versus when you look at your guide, you have a big backlog to ship from? What should we expect from the orders given these CapEx guides? Yeah, I mean, our bookings are strong in aerials. They were strong in the fourth quarter, and they're strong again in the first quarter. So we don't really see any kind of headwinds creeping in, at least not for the immediate term. Our cancellations are low, they're continuing to be low. The conversations that we have with our customers continue to be upbeat and bullish. We understand that the CapEx guidance, you know, are coming back to kind of a more normal patterns, if you will. But we still see a lot of a lot of momentum. For us, it's just, you know, how much can be built and how fast, David. We... For 2024 in aerials, we're not concerned about demand. Quite frankly, I think the industry as a whole is now also starting to take a much longer term view at demand and supply because, you know, we've kind of, you know, come out kinda scarred, if you will, with this last pandemic. So we're actually having our conversations about 2025 and 2026. So it's all still very optimistic and bullish. We don't necessarily see any headwinds mounting in our bookings profile, nor the conversations that we're having with our customers. I mean, the commentary is demand for your product is above, say, the demand for dirt. And, you know, you know, Larry mentioned it from Herc, and I think that's generally understood. Just the magnitude of the CapEx declines, at least to start the year. So when you say orders are strong in the first quarter, are you seeing a little bit of a mix away from the nationals being the composition of the orders for the quarter? Or- No ... they can say what they want on their CapEx guide, you're still seeing good orders from the nationals as well. Good orders from the nationals, probably a little stronger than from a percentage standpoint. So the nationals are coming in very strong for us. Now, the next question obviously then we get is, "So do you see unfavorable mix?" We don't, because, you know, we're running a global business, and it kinda all washes out, but we certainly see the nationals coming in strong for us. We're running a little bit out of time, but I am curious, a lot of them are at least commenting, "This is our initial guide."... but the reason we also can start low is we have flexibility again, right? We don't need to order quite as early. But at least when I hear from you that you're still constrained, I guess that's more of a commentary they're making on their dirt purchases or light towers or compressors. You're pretty much already having conversations on, "We'll give you what we can in 2024," but most of your conversations now are about 2025? Yeah, although we're kind of debating different shades of gray here, right? Because we're unconstrained on some product lines, we're constrained on the others, so it's not as absolute in that sense. In certain parts of the company we are unconstrained, but generally speaking, I would say that's a fair statement. Yes, we're mostly having discussions now on 2025 and 2026. For Europe, incrementally weaker, or you think you have your arms around the weakness for Europe in 2024? I don't think... I think Europe is still going to continue to be weak for the remainder of the year. Okay. It's December 31st of 2024, what's the most surprising thing that's gonna happen the next nine months with Terex? Is it a size of acquisition? Is it operational improvement from, you know, maybe your base case for the year? I'm just curious, what are you look for, you know, especially making a, I don't want to say a little bit of a splash, but first year as CEO, what should I look back and be most surprised at December 31st? A newfound appreciation for the MP side of the business. Okay. All right. Really appreciate you coming in from Mexico virtually. Yeah, thank you for- Thank you ... having us. Apologies for the bad connection at the start- Yes ... but thank you for having us. Thank you. No worries. All right, safe travels home. Okay. Thank you very much. Thank you. Bye. Appreciate it.