SG&A Efficiency Analysis: Comparing Howmet Aerospace Inc. and CNH Industrial N.V.

SG&A Efficiency: A Decade in Review

In the competitive landscape of aerospace and industrial manufacturing, understanding operational efficiency is crucial. Over the past decade, Howmet Aerospace Inc. and CNH Industrial N.V. have demonstrated distinct trends in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, CNH Industrial N.V. saw a significant reduction in SG&A expenses, dropping by approximately 36% from its peak in 2014. This reflects a strategic shift towards leaner operations. Meanwhile, Howmet Aerospace Inc. maintained a more stable SG&A profile, with a notable dip in 2020, likely due to pandemic-related adjustments, before stabilizing in subsequent years. By 2023, Howmet's SG&A expenses were about 55% lower than CNH's, highlighting their efficient cost management. These trends underscore the importance of strategic financial planning in maintaining competitive advantage in their respective industries.