Who Optimizes SG&A Costs Better? Cummins Inc. or Old Dominion Freight Line, Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of the transportation and manufacturing sectors, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Cummins Inc., a leader in power solutions, and Old Dominion Freight Line, Inc., a prominent freight carrier, have shown distinct strategies in optimizing these costs over the past decade.

From 2014 to 2023, Cummins Inc. consistently reported higher SG&A expenses, peaking at $3.2 billion in 2023. This represents a 53% increase from 2014, reflecting their expansive operations and global reach. In contrast, Old Dominion Freight Line, Inc. maintained a more conservative approach, with SG&A expenses growing by 94% over the same period, reaching $281 million in 2023.

While Cummins' larger scale justifies its higher expenses, Old Dominion's efficient cost management highlights its strategic focus on operational efficiency. This comparison underscores the diverse approaches companies take in optimizing their financial strategies.