Who Optimizes SG&A Costs Better? Caterpillar Inc. or Avery Dennison Corporation

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial and manufacturing sectors, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, from 2014 to 2023, Caterpillar Inc. and Avery Dennison Corporation have showcased distinct strategies in optimizing these costs.

Caterpillar Inc., a leader in construction machinery, has consistently maintained higher SG&A expenses, peaking at approximately $6.37 billion in 2023. This represents a 36% increase from its lowest point in 2020. In contrast, Avery Dennison Corporation, a key player in labeling and packaging materials, has demonstrated a more stable SG&A trajectory, with a modest 13% increase over the same period, reaching around $1.33 billion in 2022.

This comparison highlights the differing approaches to cost management, with Caterpillar's expenses reflecting its expansive operations, while Avery Dennison's steadier figures suggest a more controlled cost strategy.