Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Also in the interest of time, we ask that you please ask one question and one follow-up initially and then re-queue for any additional questions. Our first question is from the line of John Franzreb with Sidoti. Please go ahead.
John Franzreb - Sidoti
Good morning, guys. Great job, today.
Tom Powell
Good morning, John.
Pat McDonald
Thank you.
John Franzreb - Sidoti
Listen, could you just talk a little bit about what’s going on with the Power/Vac, the new labor force, you – Pat, you implied that there is certainly opportunities to improve the margin and productivity over there, can you just give a little bit more background color on what’s that you are taking in, and why the timeline is so long?
Pat McDonald
Well, John. We have always talked about how long it would take. Again remember, we brought in a whole new work force to take on this product line as we transition it from Burlington, Iowa with a work force there that averaged more than 25 years worth seniority, so it’s a new work force out here, one. It’s a new product for this work force to be working on. So as we have transitioned it, we are now working on the productivity in being able to be very consistent in what we do, how it flows down the product line, making sure that all the parts and pieces are there and available for the organization to be able to produce the equipment on an ongoing basis. And we continue to look at how we configure the facility to make sure that we make the productivities that we are looking for.
John Franzreb - Sidoti
Are you through with your recruiting expenses kind of associated with staffing up that line?
Pat McDonald
Well, again remember, there are two areas of staffing and growth in our employment levels. One is for that business. The other is for the tremendous volume that we have across all of Powell. So, we are still hiring, not at the pace that we were for our Kurland facility, but we continue to hire throughout the entire organization, and we will continue to have hiring expenses and training expenses for those people continuing out for quite some time.
John Franzreb - Sidoti
Okay. One follow-up question then, the Port Arthur project that $50 million, is that all part of backlog or...?
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