Who Optimizes SG&A Costs Better? Deere & Company or AMETEK, Inc.

Optimizing SG&A Costs: A Comparative Analysis

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. This analysis delves into the SG&A cost optimization strategies of Deere & Company and AMETEK, Inc. over the past decade. From 2014 to 2023, AMETEK, Inc. consistently maintained lower SG&A expenses, averaging around 550 million annually. In contrast, Deere & Company reported significantly higher expenses, averaging approximately 3.4 billion annually. Notably, AMETEK's SG&A costs increased by about 46% from 2014 to 2023, while Deere's expenses rose by roughly 10% in the same period. This suggests that while AMETEK operates with a leaner cost structure, Deere's larger scale may necessitate higher expenditures. However, the missing data for AMETEK in 2024 highlights the need for continuous monitoring to ensure accurate comparisons. Understanding these trends is vital for investors and stakeholders aiming to gauge operational efficiency.