Who Optimizes SG&A Costs Better? 3M Company or Howmet Aerospace Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, 3M Company and Howmet Aerospace Inc. have showcased contrasting strategies in optimizing these costs. From 2014 to 2023, 3M's SG&A expenses fluctuated, peaking in 2023 with a staggering 165% increase from 2014. In contrast, Howmet Aerospace Inc. demonstrated a more consistent approach, with expenses decreasing by approximately 55% over the same period.

3M's significant spike in 2023 suggests strategic investments or restructuring, while Howmet's steady decline indicates a focus on cost efficiency. Notably, Howmet's expenses in 2023 were just 4% of 3M's, highlighting their lean operational model. As we look to the future, these trends offer valuable insights into how industrial leaders can balance growth and efficiency.