Who Optimizes SG&A Costs Better? Cummins Inc. or Fastenal Company

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Cummins Inc. and Fastenal Company, two leaders in their respective fields, have shown distinct strategies over the past decade. From 2014 to 2023, Cummins Inc. saw a 53% increase in SG&A expenses, peaking at $3.2 billion in 2023. In contrast, Fastenal Company demonstrated a more controlled growth of 64%, reaching $1.8 billion in the same year. This suggests that while Cummins Inc. has larger absolute expenses, Fastenal Company has been more efficient in scaling its operations. Notably, data for Cummins Inc. in 2024 is missing, leaving room for speculation on their future cost management strategies. As businesses navigate economic uncertainties, these insights into SG&A optimization offer valuable lessons for sustaining growth and competitiveness.