SG&A Efficiency Analysis: Comparing Howmet Aerospace Inc. and AMETEK, Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of aerospace and electronics, understanding SG&A (Selling, General, and Administrative) efficiency is crucial. Over the past decade, Howmet Aerospace Inc. and AMETEK, Inc. have showcased contrasting trends in their SG&A expenses. From 2014 to 2023, AMETEK's SG&A expenses grew by approximately 46%, reflecting a steady increase in operational costs. In contrast, Howmet Aerospace saw a significant reduction of about 55% in their SG&A expenses, particularly after 2020, indicating strategic cost management. This divergence highlights Howmet's aggressive cost-cutting measures, especially post-2020, while AMETEK's consistent growth suggests a different strategic focus. These insights provide a window into the operational strategies of these industry leaders, offering valuable lessons in financial management and efficiency.