Trane Technologies plc or Owens Corning: Who Manages SG&A Costs Better?

Managing 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. Trane Technologies plc and Owens Corning, two giants in the industry, have shown distinct approaches over the past decade.

From 2014 to 2023, Trane Technologies consistently reported higher SG&A expenses, averaging around 2.66 billion annually. Despite this, their expenses have shown a steady increase of approximately 18% over the period, peaking in 2019. In contrast, Owens Corning maintained a more modest average of 667 million, with a notable 71% increase from 2014 to 2023.

While Trane Technologies' higher expenses might suggest inefficiency, it could also reflect strategic investments in growth. Owens Corning's leaner approach indicates a focus on cost control. Understanding these dynamics offers valuable insights into each company's operational strategies.