Optimizing SG&A Costs: A Comparative Analysis

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. AMETEK, Inc. and CNH Industrial N.V. have been at the forefront of this financial discipline since 2014. Over the past decade, AMETEK has demonstrated a steady increase in SG&A expenses, peaking at approximately $677 million in 2023, reflecting a 46% rise from 2014. In contrast, CNH Industrial N.V. has shown a more volatile trend, with a significant reduction of 36% in SG&A costs, from $2.925 billion in 2014 to $1.863 billion in 2023.

This divergence highlights AMETEK's consistent growth strategy, while CNH Industrial's cost-cutting measures suggest a focus on efficiency. As businesses navigate economic uncertainties, these insights offer valuable lessons in strategic financial management.