How Corrosion Cost Globally, Importance of Corrosion Prevention

How Corrosion Cost Globally


How Corrosion Cost Globally- The global cost of corrosion is estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global GDP (2013). By using available corrosion control practices, it is estimated that savings of between 15 and 35% of the cost of corrosion could be realized; i.e., between US$375 and $875 billion annually on a global basis. These costs typically do not include individual safety or environmental consequences.

Through near misses, incidents, forced shutdowns (outages), accidents, etc., several industries have come to realize that lack of corrosion management can be very costly and that, through proper corrosion management, significant cost savings can be achieved over the lifetime of an asset. To achieve the full extent of these savings, corrosion management, and its integration into an organization’s management system must be accomplished by implementing a Corrosion Management System (CMS).

In 2001 NACE International, an industry authority for corrosion control solutions initiated a study with the U.S. Federal Highway Administration to determine the annual cost of corrosion (for all industries) in the United States. The study estimated that the direct cost of corrosion in the US in 2001 was $276 billion. While very little research has been published since the study was completed, experts believe that the cost has only grown since 2001. Corrosion is still one of the largest expenses the U.S. economy faces, outstripped only by enormous industries like health care.

The term “direct cost” refers to expenditures that are directly related to preventing corrosion or correcting damage caused by corrosion. These consist of things like designing systems for corrosion management (e.g., material selection, corrosion allowance, corrosion protection, labor, equipment, and overhead) and implementing corrosion control after the structure has been built (e.g., inspections, maintenance, repairs, replacements, and output loss as a result of downtime). The in-depth study split the cost of corrosion by industry, as shown in the chart below (accounting for a total extrapolated cost of $137.9 billion – see reference for a full explanation).

Corrosion industry

While the graph above only refers to the direct cost of corrosion, it does not account for the indirect costs.

Each of these impacts has a unique expense and is considered an “indirect cost” of corrosion. NACE estimated that the indirect costs of corrosion are at least equal to the direct costs, and when coupled together, the total cost of corrosion in the U.S. in 2001 was a staggering $552 billion.

Cost of Corrosion in India:

Lakhs of crores of rupees are lost every year due to rust, corrosion, wear and tear, accidental damages and other such factors. The Ministry of Statistics and Programme Implementation (MOSPI) prepares the estimates of consumption of fixed capital (CFC) which also includes the effect of wear and tear, on capital goods. The CFC loss in the last fiscal was more than 10 percent of India’s GDP, studied in March 2020. These losses lead to economic depreciation every year and are mostly seen in the manufacturing and real estate industries.

In manufacturing and real estate industries, the yearly loss due to CFC was more than Rs 4.2 lakh crores respectively in the last fiscal. Transport, agriculture, and electricity are other industries that suffer the most due to such losses. In the transport and agriculture sector, such losses are up to Rs 2 lakh crores every year.

What is corrosion?

Corrosion is the deterioration of metal and is caused by the reaction of the metal to the environment.

How Corrosion occurs in different Industries?

Marine: Reference to marine corrosion of a pier piling means that the steel piling corrodes because of its reaction with the marine environment. The environment is air-saturated seawater.
Cement Plants: In general, corrosion in cement plants occurs when process gases containing moisture, SOx, HOI, and NOx, operate at dew point temperatures. The economic impact of corrosion damage has become a significant problem in cement plants worldwide.
Power Plants: Oxide corrosion: An electrochemical process on metal surfaces when oxygen molecules dissolve in water. This type of corrosion occurs when lagging isn't installed properly, or when protective surface coatings fail or were never applied.
Steel Plants: Steel corrosion in any environment is an electrochemical process in which iron (Fe) is removed from the steel being corroded and is dissolved into the surrounding solution; it then appears as ferrous ions (Fe+).
Oil & Gas Plants: Internal corrosion in the oil and gas industry is generally caused by water, carbon dioxide (CO2), and hydrogen sulfide (H2S), and also can be aggravated by microbiological activity. Importantly, the flow regimes of multiphase fluids greatly influence the corrosion rate.
Food Industries: The importance of cleanliness in food processing plants is extremely high. To eliminate bacteria and viruses from surfaces and equipment, it is imperative to adopt an effective cleaning and sanitization program. Most of these sanitizers which contains harsh chemicals can be quite corrosive to metals.

Why Prevention of Corrosion is Importance?

Manufacturers in industrial districts should notice the smoke and fumes in the region. These can contain acids, alkalis, and other corrosive chemicals. It might not be expected, but corrosion can happen quickly when atmospheric and environmental conditions include excessive smoke from other manufacturers.

It is also essential to consider any systems that are buried in the ground. The soil can quickly corrode metals like pipes and other steel systems. Soils can conduct electricity, which can severely corrode metal.

Understanding, recognizing, and preventing corrosion is important for industrial facilities, especially when they use metals. Industrial facilities need to take precautions to minimize corrosion in their systems.

Without corrosion control, facilities will likely struggle with the repercussions of corrosion. Preventing corrosion is not free, but it is less costly than fixing or replacing damaged systems when it’s too late.

Without preventative steps, facilities can have damage or complete loss of structures. They can also have increased maintenance costs from continually fighting fires.Businesses can lose revenue if corrosion causes long-term problems like leaks or fires.

Because of this, it’s important to consider a more proactive approach to corrosion

How Coatings Are So Important?

Metal needs to be properly coated to prevent corrosion. Without coatings, small parts can damage larger parts. Consider the valves, pumps, switches, belts, and mechanical equipment. If any part becomes corroded, a larger system can be damaged.

Demech Chemical Products Pvt. Ltd coatings are highly reliable, so manufacturers regularly choose them. Demech Chemical offers an affordable way to prevent Corrosion, abrasion, and erosions.

Coating metals can reduce costs. Without coatings, costs can increase by up to 25% as they need regular repair and maintenance. With coatings, less maintenance is needed.

Adding coatings to systems can also reduce workplace accidents caused by damaged equipment. If corrosion is properly managed, work-related accidents decrease.

When equipment is coated, it is less likely to have damage due to corrosion. When equipment corrodes, the time has to be taken to fix it.

When machinery needs to be repaired, it is not working for the business. Instead, production stops, and revenue decreases due to this unexpected downtime.

The Range of Demech Chemical Products Pvt. Ltd Products for Corrosion Prevention and Repair.

So, these Demech Chemical products can be used for corrosion prevention and repair solutions for any type of substrate, whether its metal, steel, aluminum, or concrete.

  • To help you protect, repair, and rebuild your assets from all seasons, on metallic and non-metallic surfaces, TEAM DEMECH CHEMICAL has been providing value-added services since 1993. Reach out to our experts and share your challenges to help us assess and customize a solution.

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