Who Optimizes SG&A Costs Better? XPO Logistics, Inc. or Stanley Black & Decker, Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of logistics and manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, XPO Logistics, Inc. and Stanley Black & Decker, Inc. have showcased contrasting strategies in this domain. From 2014 to 2023, Stanley Black & Decker's SG&A expenses have seen a steady increase, peaking in 2022 with a 30% rise from 2014. In contrast, XPO Logistics experienced a significant reduction in SG&A costs, dropping by nearly 60% from their 2020 peak to 2023. This divergence highlights XPO's aggressive cost-cutting measures, while Stanley Black & Decker's expenses reflect a more consistent investment in administrative functions. As businesses navigate economic uncertainties, these insights offer valuable lessons in balancing cost management with strategic growth.