Who Optimizes SG&A Costs Better? Pentair plc or ITT 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, Pentair plc and ITT Inc. have demonstrated contrasting strategies in optimizing these costs.

A Decade of Change

From 2014 to 2023, Pentair plc has seen a significant reduction in SG&A expenses, dropping by approximately 55% from 2014 to 2020. This strategic cost-cutting has allowed Pentair to streamline operations and focus on core competencies. In contrast, ITT Inc. has maintained a more stable SG&A expense profile, with a modest decrease of about 8% over the same period.

Strategic Insights

Pentair's aggressive cost optimization reflects a shift towards efficiency, while ITT's steady approach suggests a focus on maintaining operational stability. As the industrial sector evolves, these strategies highlight the diverse paths companies can take to achieve financial health.