Graco (GGG) Q2 2016 Earnings Call

Graco (GGG) CEO Pat McHale said customers are reluctant to make purchases 

“The U.S. is stagnant across product categories, and reflective of weakness in end markets such as Heavy Equipment, Ag, Aerospace, and Truck and Trailer. End markets that have been strong for the last several years, General Industry, Automotive, and Construction markets were better than the segment average but are currently soft. We’re seeing cautious customers, and a general reluctance to invest capital across most of our end markets.”

Customers are delaying purchases 

“I’d say people are taking more time to make decisions on CapEx projects than they probably would have here a year ago. And remember we were still seeing pretty good activity in the fourth quarter last year coming out of those segments, and customers with willingness to invest. But it really seems like the last six months things have slowed a little bit. I mean, again, it’s not dramatic, and I’m not predicting anything to fall off a cliff. But definitely in the last six months the environment has got a little softer from my standpoint rather than better.”