Who Optimizes SG&A Costs Better? United Rentals, Inc. or Hubbell Incorporated

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of corporate America, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. United Rentals, Inc. and Hubbell Incorporated, two industry giants, have shown distinct strategies over the past decade. From 2014 to 2023, United Rentals consistently reported higher SG&A expenses, peaking at approximately $1.53 billion in 2023, a 102% increase from 2014. In contrast, Hubbell Incorporated's SG&A expenses grew by about 43% over the same period, reaching $848 million in 2023.

This divergence highlights United Rentals' aggressive expansion strategy, reflected in their rising SG&A costs, while Hubbell's more conservative approach suggests a focus on cost efficiency. The data for 2024 is incomplete, but the trends suggest that United Rentals may continue its upward trajectory. As businesses navigate economic uncertainties, these insights into SG&A management offer valuable lessons in balancing growth and cost control.