Fastenal Company or HEICO Corporation: Who Manages SG&A Costs Better?

Fastenal vs. HEICO: A Decade of SG&A Management

In the competitive landscape of industrial and aerospace sectors, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Fastenal Company and HEICO Corporation have demonstrated contrasting approaches to SG&A cost management.

Fastenal, a leader in industrial supplies, has seen its SG&A expenses grow by approximately 70% from 2014 to 2024. Despite this increase, Fastenal's expenses have remained relatively stable as a percentage of revenue, showcasing efficient cost management.

Conversely, HEICO, a prominent aerospace and electronics company, has experienced a more dramatic rise in SG&A expenses, with a 247% increase over the same period. This surge reflects HEICO's aggressive expansion strategy, which, while increasing costs, has also driven significant revenue growth.

Understanding these trends offers valuable insights into how these companies balance growth and cost efficiency in their respective industries.