Who Optimizes SG&A Costs Better? Emerson Electric Co. or Owens Corning

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 maintaining profitability. Emerson Electric Co. and Owens Corning, two industry stalwarts, have shown distinct approaches over the past decade. From 2014 to 2023, Emerson Electric Co. has seen a notable reduction in SG&A expenses, dropping from approximately $5.7 billion to $4.2 billion, a decrease of about 26%. This trend reflects Emerson's strategic cost optimization efforts. In contrast, Owens Corning's SG&A expenses have gradually increased, rising from $487 million in 2014 to $831 million in 2023, marking a 71% increase. This divergence highlights differing strategic priorities, with Emerson focusing on cost efficiency, while Owens Corning may be investing in growth initiatives. The data for 2024 is incomplete, indicating potential shifts in strategy or reporting. As these companies navigate economic challenges, their SG&A management will be pivotal in shaping their financial futures.