Long-term Organic Growth Outlook
Q: Confident in higher organic growth going forward?
A: Eric is confident in targeting mid-single-digit organic growth, leveraging faster-growing markets and capital deployment to outpace prior 3–4% rates. They aim for 200–300 bps of outperformance, focusing on portfolio enhancement and growth initiatives.

Life Sciences Recovery Timing
Q: When will life sciences segment recover?
A: Eric stated they are conservatively planning for flat performance in life sciences for 2024 but are ready if recovery starts in the second half. He acknowledged customer expectations of inventory normalization by midyear but prefers cautious internal forecasting.

HST Cost Management and Margins
Q: Is HST cost structure set for margin expansion?
A: Abhi confirmed comfort with current cost levels in HST, expecting margins to expand as volumes return. They've managed costs carefully, protecting core expertise, and are positioned to leverage demand recovery efficiently.

Segment Margin Outlook
Q: Expectations for segment margins in 2024?
A: Abhi expects HST margins to approach 30% as volumes increase, slight margin expansion in FMT, and slight contraction in FSDP margins due to mix pressure from the dispensing business.

2024 Guidance and Market Stability
Q: How is guidance set amidst market conditions?
A: Eric described normal seasonality and early signs of growth, with stability in Q4 and a positive start in January across all segments. Guidance reflects cautious optimism, with growth bets positioned and expectations of sequential improvements.

Price Capture and Future Pricing
Q: Will price increases remain above historical levels?
A: Abhi anticipates price increases in 2024 to be around 2%, settling between pre-pandemic levels and recent highs. Eric views price capture as a competitive advantage, expecting pricing to remain slightly above historical norms as long as core inflation stays elevated.

Positive Trends in Short-Cycle Businesses
Q: How are short-cycle businesses performing?
A: Eric noted that key short-cycle businesses like BAND-IT, Gast, and Warren Rupp are all moving positively together, signaling healthier demand and underpinning confidence in the outlook.

M&A Opportunities
Q: Update on M&A prospects?
A: Eric stated that M&A remains a significant focus with increased potential. Improvements in the market may enhance the availability of targets, and they are confident in their ability to deploy capital effectively.

Energy Transition Demand
Q: What growth is seen from energy transition?
A: Eric highlighted strong demand in areas like battery manufacturing, alternative energy solutions, and mining, driven by the energy transition. This includes involvement in material handling for batteries and thermal management in alternative energy applications across regions.

Customer CapEx Outlook
Q: Has customer CapEx sentiment changed?
A: Eric observed early positive signs of increased capital deployment among customers, particularly in water, energy, and pharma sectors. While still in early days, indications point to more intentional capital spending on projects.