Graco(US:GGG)2025-02-18 19:07Financial Performance - In 2024, Graco's total product development expenditures reached $87 million, averaging approximately 4% of sales over the last three years[28]. - Total sales for Graco in 2024 were driven by strong performance across all three reportable segments[17]. - Sales in the Americas comprised around 63% of total sales, with EMEA at 21% and Asia Pacific at 16% in 2024[18]. - The Contractor segment accounted for approximately 47% of total sales in 2024, focusing on sprayers for various applications[30]. - The Industrial segment represented about 29% of total sales in 2024, serving markets such as automotive, aerospace, and construction[36]. - The Process segment contributed approximately 24% to total sales in 2024, targeting industries like food and beverage, oil and natural gas, and pharmaceuticals[43]. Business Strategy and Operations - The company focuses on product innovation and customer service as key components of its long-term growth strategy[16]. - The company is pursuing a strategy to convert contractors from manual application to spray technology, expanding its distributor network globally[34]. - The company plans to classify its business into three reportable segments: Contractor, Industrial, and Expansion Markets, effective January 1, 2025[49]. - The Industrial segment includes the newly formed Industrial Division and the Powder Division, while the Expansion Markets segment focuses on inorganic growth[50]. - Graco's manufacturing capacity is aligned with business demand, supported by recent expansions and modernization efforts[26]. - The company made targeted acquisitions in 2024 to enhance product offerings and expand manufacturing capabilities[14]. - The company completed acquisitions in the Contractor and Process segments in 2024, enhancing product offerings and manufacturing capabilities[14]. - The company invested in engineering, manufacturing, and commercial resources for acquired businesses based on expected return on investment[29]. - The company focuses on enhancing product capabilities with an emphasis on automation, configurability, and data analytics[27]. Supply Chain and Market Conditions - The global supply chain stabilized in 2024, leading to improved lead times and reduced inflationary effects[52]. - The company sources raw materials and components from multiple suppliers, primarily in the Asia Pacific region, to manage costs[51]. Workforce and Employee Programs - The company employed approximately 4,300 persons as of December 27, 2024, with 1,900 employees based outside the U.S.[57]. - The company’s total rewards program includes base pay, variable pay, equity-based compensation, and health benefits to attract and retain talent[61]. Community Engagement and Philanthropy - The Graco Foundation focuses on grants for capital projects, specific programs, and technology needs to enhance community service capabilities[64]. - Emphasis is placed on educational programs, particularly in STEM (science, technology, engineering, and math) fields[64]. - The foundation supports human service programs aimed at workforce development and youth development initiatives[64]. - Employee-based programs include dollar-for-dollar gift matching and grants to support volunteerism[64]. - Scholarships are provided for children of employees, promoting educational advancement[64]. - The foundation engages in tutoring programs with local middle schools to support student learning[64]. - An annual Paint-A-Thon is organized to assist low-income seniors and individuals with permanent disabilities[64]. - The goal of the Graco Foundation is to help organizations grow their ability to serve community needs[64]. - Volunteer efforts by employees are a significant aspect of the foundation's community engagement strategy[64]. - The foundation's initiatives aim to foster independence for vulnerable populations in their own homes[64]. Expansion Projects - Graco completed significant expansion projects in 2024, including a new worldwide distribution center in Dayton, Minnesota[26]. - The company completed significant expansion projects in 2024, including a worldwide distribution center in Dayton, Minnesota, and a manufacturing facility in Gossau, Switzerland[26].