Who Optimizes SG&A Costs Better? Honeywell International Inc. or Illinois Tool Works Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Honeywell International Inc. and Illinois Tool Works Inc. have been at the forefront of this challenge since 2014. Over the past decade, Honeywell's SG&A expenses have fluctuated, peaking in 2018 and then declining by approximately 23% by 2023. In contrast, Illinois Tool Works has maintained a more stable trajectory, with a modest 12% reduction in SG&A costs over the same period.

This data reveals Honeywell's aggressive cost-cutting measures, especially post-2018, while Illinois Tool Works has opted for a steadier approach. As these industry leaders continue to refine their strategies, their ability to optimize SG&A costs will remain a key factor in their financial performance and competitive edge.