W.W. Grainger, Inc. or Watsco, Inc.: Who Manages SG&A Costs Better?

A Tale of Two Companies: SG&A Cost Management

In the competitive landscape of industrial distribution and HVAC systems, W.W. Grainger, Inc. and Watsco, Inc. have been pivotal players. Over the past decade, these companies have demonstrated distinct strategies in managing their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, W.W. Grainger's SG&A expenses have seen a steady increase, peaking at approximately $3.9 billion in 2023, reflecting a 32% rise from 2014. In contrast, Watsco, Inc. has managed a more modest increase, with expenses growing by 82% over the same period, reaching around $1.2 billion in 2023. This divergence highlights Grainger's expansive operational scale, while Watsco's growth underscores its strategic cost management. As businesses navigate economic fluctuations, understanding these trends offers valuable insights into corporate efficiency and financial stewardship.