Cost Management Insights: SG&A Expenses for Deere & Company and Textron Inc.

Navigating Cost Management: A Tale of Two Giants

In the ever-evolving landscape of industrial manufacturing, effective cost management is crucial. Deere & Company and Textron Inc., two titans in the industry, have demonstrated contrasting strategies in managing their Selling, General, and Administrative (SG&A) expenses over the past decade. From 2014 to 2023, Deere & Company maintained a relatively stable SG&A expense, averaging around $3.4 billion annually, with a notable peak in 2024, marking a 30% increase from 2014. In contrast, Textron Inc. exhibited a more volatile pattern, with a significant surge in 2024, reaching nearly ten times its 2014 expenses. This dramatic rise suggests strategic shifts or market adaptations. Understanding these trends offers valuable insights into how these companies navigate economic challenges and opportunities, providing a roadmap for other industry players aiming to optimize their cost structures.