What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-20 compared with 2023-02-21 · 29 added, 35 removed, 177 unchanged (27% of the section changed)

11 unchanged sentences

We leverage our product technologies for new applications and industries.

We also make targeted acquisitions to broaden our product offering, enhance our capabilities in the end-user markets we serve, expand our manufacturing and distribution base and potentially strengthen our geographic presence.

We also make targeted acquisitions to broaden our product offerings, enhance our capabilities in the end-user markets we serve, expand our manufacturing and distribution base and potentially strengthen our geographic presence.

These acquisitions may be integrated into existing Graco operations or may be managed as stand-alone operations.

7 unchanged sentences

For 2023, sales in the Americas represented approximately 61 percent of our Company’s total sales.

Sales in EMEA represented approximately 21 percent.

Sales in Asia Pacific represented approximately 19 percent.

Sales in EMEA represented approximately 21 percent and sales in Asia Pacific represented approximately 18 percent.

We provide marketing and product design in each of these geographic regions.

5 unchanged sentences

We manufacture a majority of our products in the United States (“U.S.”).

We also manufacture products in Switzerland (Industrial segment), Italy (Industrial segment), the United Kingdom (Process segment), the People’s Republic of China (“P.R.C.”) (all segments), Belgium (all segments) and Romania (Industrial segment).

We also manufacture products in Switzerland (Industrial segment), Italy (Industrial segment), the United Kingdom (Process segment), the People’s Republic of China (“P.R.C.”, or "China") (all segments), Belgium (all segments) and Romania (Industrial segment).

Our manufacturing is aligned with our business segments and is co-located with product development to accelerate technology improvements and improve our cost structure.

6 unchanged sentences

Outside of the U.S., our subsidiaries located in Australia, Belgium, Spain, Japan, Italy, Korea, India, the P.R.C., the United Kingdom and Brazil distribute our Company’s products.

Operations in Maasmechelen, Belgium;

Gallen, Switzerland;

and Shanghai, P.R.C.

reinforce our commitment to their regions.

Operations in Maasmechelen, Belgium, St.

Gallen, Switzerland, and Shanghai, P.R.C.

reinforce our commitment to those regions.

Our manufacturing capacity is sufficient for current business demand levels.

Production requirements in the immediate future are expected to be met through existing facilities, planned facility expansions, the installation of new automatic and semi-automatic machine tools, efficiency and productivity improvements, the use of leased space and available subcontract services.

In 2022, we completed a construction project on a new facility in Dayton, Minnesota that contains manufacturing operations for portions of our Contractor segment and Process division.

We also began facility construction and expansion projects in our Sioux Falls, South Dakota;

Gallen, Switzerland;

and Sibiu, Romania manufacturing facilities in 2022, as well as the construction of a new worldwide distribution center in Dayton, Minnesota.

We are in the planning and design phases of additional projects to expand capacity in other manufacturing and distribution locations in 2023 and beyond.

In 2023, we completed an expansion of our Sioux Falls, South Dakota manufacturing facility and the construction of a new manufacturing facility in Sibiu, Romania.

We also took possession of our newly constructed worldwide distribution center in Dayton, Minnesota, which we anticipate will first be operational later in 2024.

In addition, in 2023, we continued construction of a new facility in St.

Gallen, Switzerland that will contain manufacturing operations for our Powder division, as well as began an expansion of our Anoka, Minnesota facility.

The completion of these projects, which we expect to occur in 2024, represents the culmination of a period of significant investment in expansion and modernization of our key manufacturing and distribution facilities.

Following completion of these projects, production requirements in the immediate future are expected to be met through existing facilities, the installation of new automatic and semi-automatic machine tools, efficiency and productivity improvements, the use of leased space and available subcontract services.

For more details on our facilities, see Item 2, Properties.

Product Development

Our primary product development efforts are carried out in facilities located in Minneapolis, Anoka and Rogers, Minnesota;

Our primary product development efforts are carried out in facilities located in Minneapolis, Anoka, Dayton and Rogers, Minnesota;

North Canton, Ohio;

1 unchanged sentence

Barcelona, Spain;

Suzhou and Shanghai, P.R.C.;

Aachen, Germany;

Suzhou, Shanghai and Dongguan City, P.R.C.;

Dexter, Michigan;

Erie, Pennsylvania;

and Coventry, United Kingdom.

In 2021, we opened facilities in Dongguan City, P.R.C.

and Aachen, Germany, devoted to the support and development of products for electronics assembly, battery and new energy vehicles.

and Kamas, Utah.

The product development and engineering groups focus on new product design, product improvements, and new applications for existing products and technologies for their specific customer base.

32 unchanged sentences

The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids.

Markets served include automotive and vehicle assembly and components production, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

Markets served include automotive and vehicle assembly and components production, including Electro or e-mobility, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

End users often invest in our equipment to gain process efficiencies, improve quality or save on material or energy costs.

6 unchanged sentences

Design centers engineer systems for their customers using our products.

Original equipment manufacturers incorporate our Company’s Industrial segment products into systems and assemblies that they then supply to their customers.

Original equipment manufacturers incorporate our Industrial segment products into systems and assemblies that they then supply to their customers.

The Industrial division makes liquid finishing and advanced fluid dispense equipment primarily for use in industrial applications.

5 unchanged sentences

Advanced fluid dispense equipment includes gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators and precision dispensing solutions.

This precision dispense equipment bonds, molds, seals, vacuum encapsulates and laminates parts and devices in a wide variety of industrial applications.

This precision

dispense equipment bonds, molds, seals, vacuum encapsulates and laminates parts and devices in a wide variety of industrial applications.

The Powder division makes powder finishing products and complete powder finishing systems that coat powder on metals.

These products are sold under the Gema® and SAT™ brands.

Gema powder systems coat window frames,

metallic furniture, automotive components and sheet metal.

Gema powder systems coat window frames, metallic furniture, automotive components and sheet metal.

Primary end users of our powder finishing products include manufacturers in the construction, home appliance, automotive component and custom project coater industries.

27 unchanged sentences

To manage cost, we source significant amounts of materials and components from outside the U.S., primarily in the Asia Pacific region.

In 2022, we continued to experience logistical and production constraints associated with raw materials and purchased components.

These constraints were due to limited component availability, reduced freight capacity, shipping delays, and labor shortages.

While we were generally able to find alternative suppliers to source raw materials and components for our products as interruptions persisted, these constraints reduced our ability to meet demand and increased lead times across many of our product lines.

Additionally, we experienced price inflation related to raw materials and purchased components.

The effects of inflation were most pronounced on motors, electronics, and commodity prices for materials, such as aluminum, stainless steel, carbon steel bar stock, plastics and copper.

Although pressures from tariffs continued in 2022, we worked with our supplier base on a variety of opportunities to lessen the effect.

In 2023, the Company's supply chain stabilized, and the associated effects of inflation largely subsided.

While the Company experienced isolated supply chain disruptions in 2023, the impact was not as significant as compared to previous years in 2022 and 2021.

We are generally able to find alternative suppliers to source raw materials and components for our products in the event of isolated disruptions.

We endeavor to address fluctuations in the price and availability of various materials and components through close management of current suppliers, price negotiations and an intensive search for new suppliers.

8 unchanged sentences

We encounter a wide variety of competitors that vary by product, industry and geographic area.

Each of our segments generally has several competitors.

Each of our segments generally has multiple competitors.

Our competitors are both U.S.

11 unchanged sentences

Of this total, approximately 1,400 were employees based outside of the U.S., and 1,300 were hourly factory workers in the U.S.

None of our Company’s U.S.

None of our U.S.

employees are covered by a collective bargaining agreement.

5 unchanged sentences

Health, Wellness & Safety

The personal health and safety of each of our employees is of primary importance.

The personal health, wellness and safety of each of our employees is of primary importance.

The prevention of occupationally induced injuries and illnesses is given precedence over operating productivity.

9 unchanged sentences

This approach has helped create among our employees an in-depth understanding of our business, products, competition and customers, while also adding new employee ideas and perspectives in support of our continuous improvement initiatives.

As of December 30, 2022, our executive officers responsible for setting overall strategy average nearly 21 years of tenure with us.

Tenure of all employees averages nearly 10 years, reflective of our positive workplace culture.

As of December 29, 2023, our executive officers responsible for setting overall strategy averaged nearly 21 years of tenure with us.

Tenure of all employees averaged nearly 10 years, reflective of our positive workplace culture.

Our recruiting team uses internal and external resources to recruit highly skilled and talented workers, and we encourage and reward employee referrals for open positions.

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business