Graco(US:GGG)2023-02-20 16:00Sales Performance - In 2022, Graco's total sales were approximately $1.5 billion, with the Contractor segment representing about 47% of total sales, the Industrial segment at 30%, and the Process segment at 23%[29][34][42]. - Sales in the Americas accounted for approximately 60% of total sales, while EMEA represented about 21% and Asia Pacific approximately 19%[18]. - In 2022, sales in the Americas represented approximately 60% of the company's total sales, while EMEA accounted for about 21% and Asia Pacific for around 19%[18]. - The Contractor segment represented approximately 47% of total sales in 2022, offering a range of sprayers for both DIY homeowners and professional contractors[29]. - The Industrial segment accounted for approximately 30% of total sales in 2022, serving markets such as automotive, aerospace, and construction[34]. - The Process segment represented approximately 23% of total sales in 2022, focusing on pumps and valves for various industries including food and beverage and oil and natural gas[42]. Product Development and Innovation - Graco invested $80 million in product development in both 2022 and 2021, and $72 million in 2020, averaging around 4% of sales over the last three years[26]. - Total product development expenditures were $80 million in 2022, $80 million in 2021, and $72 million in 2020, averaging approximately 4% of sales over the last three years[26]. - The company invested in new product development to enhance existing product lines and enter new industries, aiming for incremental sales growth[26]. - The company continues to enhance product capabilities with a focus on automation, configurability, and data analytics[25]. - Graco's product development efforts emphasize automation, configurability, and integration with end-user systems, enhancing sustainability initiatives[25][26]. Manufacturing and Capacity - The company completed a construction project for a new facility in Dayton, Minnesota, and began expansion projects in Sioux Falls, South Dakota, St. Gallen, Switzerland, and Sibiu, Romania in 2022[24]. - Graco's manufacturing capacity is sufficient for current demand, with plans for additional expansions in 2023 and beyond[24]. - The company is in the planning and design phases of additional projects to expand capacity in manufacturing and distribution locations in 2023 and beyond[24]. - The company employs approximately 4,000 persons, with about 1,700 being hourly factory workers in the U.S.[54]. - The company employs approximately 4,000 persons as of December 30, 2022, with 1,400 employees based outside the U.S.[54]. Strategic Acquisitions and Market Expansion - The company continues to pursue strategic acquisitions to broaden its product offerings and enhance capabilities in end-user markets[14][16]. - The company has made targeted acquisitions in 2022, 2021, and 2020 to broaden its product offerings and enhance capabilities in end-user markets[14]. - The company aims to grow into new geographic markets by strategically adding commercial and technical resources and third-party distribution[13]. - The company has a strategy to convert contractors from manual application to spray technology, expanding its distribution network globally[32]. Challenges and Constraints - The company faced logistical and production constraints in 2022 due to limited component availability, reduced freight capacity, and labor shortages, which increased lead times across many product lines[49]. - The company faced logistical and production constraints due to limited component availability and shipping delays, impacting its ability to meet demand[49]. - Price inflation was particularly pronounced for motors, electronics, and commodity materials such as aluminum, stainless steel, and copper[49]. Market Focus - The Contractor segment includes sprayers for various applications, targeting both professional contractors and do-it-yourself homeowners[29][32]. - The Industrial segment focuses on equipment for moving and applying paints, coatings, and adhesives, with a significant portion of sales occurring outside North America[34]. - The Process segment markets pumps and valves for various industries, including food and beverage, oil and natural gas, and pharmaceuticals, representing approximately 23% of total sales[42]. Intellectual Property - The company owns numerous patents and trademarks, which are essential for its competitive positioning in the market[51].