Historically some of that’s resided in the industrial segment and that has led to some overlap with regard to customers, salespeople, etc, and down the engineering fronts as well. So, we think putting the teams together is going to create some synergies and some better collaboration. But having them housed under one management team, I think, is a good move. We’re having supply chain issues across the business.
Supply chain constraints such as logistics capacity and component availability had an unfavorable impact in the quarter and will likely persist for the rest of the year. On a sequential basis, gross margin rates were down 250 basis graco booster seat points as we saw cost pressures such as material, labor, freight and volume-based costs increased throughout the quarter. The majority of these cost increase impact the Contractor segment as that is our highest volume business.
To some degree, if they’re familiar to us, the level of compatibility of the acquired management maybe has a different level of importance. So, we are anticipating that people are going to get back on the road. So, there would likely be some incremental spending in the back half in Process and Industrial that wasn’t there.
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And we’re hopeful that that can all come together in the next 12 to 15 months. So that is going to be a very big — big investment for us and where most of the money that Kathy is talking about is going. The Industrial segment grew substantially during the quarter and for the year with sales volume either near or exceeding pre-pandemic levels in all regions. Quoting activity increased throughout the quarter as many of our key end markets continue to recover. Incoming order rates remain elevated as the pace of business accelerates worldwide.
So, I would expect that we’ll have more project business both being booked and hopefully build as we work our way through the year. A lot of times they are lower margin but a lot of times they also carry some high margin graco jogging stroller products in them. And then, once they get installed, obviously you get the customers coming back for help, parts accessories, new projects, things like that. So, this is a pretty healthy, healthy environment. When installing a car seat, you also have to consider its angle. The Graco 4Ever 4-in-1 offers six recline positions, which can keep your child comfortable as they get taller.