The Boeing Company or Howmet Aerospace Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: Boeing vs. Howmet Aerospace

In the competitive aerospace industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, The Boeing Company and Howmet Aerospace Inc. have shown contrasting approaches to handling these costs. From 2014 to 2023, Boeing's SG&A expenses have consistently been higher, peaking at approximately $5.2 billion in 2023. In contrast, Howmet Aerospace's expenses have been significantly lower, with a notable reduction to around $343 million in 2023, marking a 55% decrease from 2014. This trend highlights Howmet's strategic cost management, especially during challenging economic periods like 2020. While Boeing's expenses have fluctuated, they remain a larger percentage of their revenue, indicating potential areas for efficiency improvements. As the aerospace sector evolves, these companies' ability to manage SG&A costs will be pivotal in sustaining their competitive edge.