Who Optimizes SG&A Costs Better? Hubbell Incorporated or Graco Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Hubbell Incorporated and Graco Inc. have demonstrated contrasting approaches to optimizing these costs.

From 2014 to 2023, Graco Inc. has shown a steady increase in SG&A expenses, rising approximately 53% from 2014 to 2023. Meanwhile, Hubbell Incorporated's SG&A expenses have surged by about 43% over the same period. Notably, in 2023, Hubbell's expenses reached their peak, nearly doubling Graco's.

This data suggests that while both companies have increased their SG&A spending, Graco Inc. has managed a more consistent growth trajectory. The absence of data for Hubbell in 2024 leaves room for speculation on their future strategy. As these companies continue to evolve, their ability to optimize SG&A costs will remain a key factor in their financial success.