Who Optimizes SG&A Costs Better? Fastenal Company or Southwest Airlines Co.

Optimizing SG&A: A Tale of Two Giants

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Fastenal Company and Southwest Airlines Co. offer a fascinating comparison in this regard. Over the past decade, Fastenal has consistently maintained a steady increase in SG&A expenses, growing by approximately 70% from 2014 to 2023. In contrast, Southwest Airlines experienced a more volatile trajectory, with a significant spike in 2016 and a notable dip in 2020, likely due to the pandemic's impact on the airline industry.

Fastenal's approach appears more stable, with a gradual increase, while Southwest's expenses surged by over 1,800% from 2014 to 2023, reflecting the airline's expansion and operational challenges. This data highlights the diverse strategies and challenges faced by companies in different sectors when optimizing their SG&A costs.