W.W. Grainger, Inc. (NYSE:GWW) will look for M&A. Deidra Merriwether Senior Vice President and CFO said during the Fourth Quarter 2023 Earnings Conference Call, "We plan to continue to execute a consistent return-driven approach to our capital allocation strategy, meaning our priorities remain largely unchanged from prior years. First, we look at investing in the business and both organic investment and opportunistic M&A. For 2024, we expect capital spending in the range of $400 million to $500 million. Spending here includes continued supply chain expansion in the United States as we worked to stand for facilities in the Pacific Northwest and the Houston area.

We also plan to further invest in our homegrown data and technology capabilities, helping power our growth engines and further our customer value proposition. Lastly, sustainability-related spin remains a priority. We will continue to invest in projects with solid returns to help achieve our emissions targets.

On M&A, we remain highly selective, but are also open to investing in capabilities and acquiring the right assets to further our strategy. And we have a small dedicated team who continually evaluate opportunities in this area. Secondly, we expect to return the balance of our excess cash to shareholders in the form of dividends and share repurchase".