The margin and cash flow benefits of internal cost inflation falling faster than CPI-influenced pricing coupled with incremental operating synergies from robust acquisition activity over the past few years continue to outpace macro and industry-specific challenges to growth and profitability. Volumes are mixed at best, with the renewed traction of return-to-office creating a tailwind for the commercial sector, albeit at the expense of lost momentum in the residential sector. Meanwhile, the C&D and manufacturing sectors continue to struggle with elevated borrowing costs that undercut consumer demand and business investment. If conditions continue to stiffen, the industry maintains proven cash flow preservation levers, including discretionary expense discipline, automation efficiencies, and the postponement of capital outlays.

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