Case Study: How Corrosion’s Economic Impact Across Multiple Industries
According to NASA, the cost of corrosion to the USA is around $276 billion per year. The total corrosion-related cost would reach $1 trillion by the end of the year.
Just how much is corrosion is affecting infrastructures, businesses and the government each year?
The NACE Corrosion Costs Study breaks up the US economy into 5 industries. The report then outline how much damage (in dollars) corrosion deals to each industry:
- Infrastructure: $22.6 billion
- Production and Manufacturing: $17.6 billion
- Transportation: $29.7 billion
- Government: $20.1 billion
- Utilities: $47.9 billion
Corrosion’s Negative Effect To Businesses And US Economy
All industries are subject to wear and tear, as well as the elements. However corrosion, while natural, remain a “controllable” process.
Corrosion control methods include organic and metallic protective coatings, corrosion-resistant alloys, plastics, and polymers, corrosion inhibitors, and cathodic protection.
Collectively, the total corrosion-related costs amount to 6.2% of the GDP. This figure represent one of the largest single expenses in the US economy.
How Much Money Can We Save Through Corrosion Protection?
Both NACE.org and NASA studies estimate that companies can save between 25% to 35% of annual corrosion-related costs through optimum corrosion management practices.
Corrosion Protection plays a huge role in preventing direct and indirect costs. Direct costs are actual resources spent in fixing corroded materials. Indirect costs are expenses incurred due to delay in production, health and environmental issues, as well as legal liabilities. Together, these two operational costs reach $552 billion in US alone.
Case Study: Corrosion Protection Costs In Production And Manufacturing
Annual corrosion related costs in the Production and Manufacturing industry is at $17.6 billion. Here’s a breakdown of how much money each industry loses over corrosion:
- Pulp And Paper: $6 billion
- Petroleum Refining: $3.7 billion
- Food Processing: $2.1 billion
- Chemical, Petrochemical, and Pharmaceutical: $1.7 billion
- Oil and Gas Exploration and Production: $1.4 billion
- Home Appliances: $1.5 billion
- Agricultural: $1.1 billion
- Mining: $0.1 billion
Cor-Pro Systems serves clients in the following industries:
Using the figures above, a well-executed corrosion-protection plan can help save:
- Pulp And Paper: $1.5 – $1.8 billion
- Petroleum Refining: $1 – $1.11 billion
- Food Processing: $525 to $630 million
- Chemical, Petrochemical, and Pharmaceutical: $425 – $510 million
- Oil and Gas Exploration and Production: $350 – $420 million
- Home Appliances: $375 – $450 million
- Agricultural: $275 – $330 million
- Mining: $25 – $30 million
Since 1987, Cor-Pro Systems, Inc. has been providing high quality corrosion protection applications.
Whether you require corrosion protection or dry film lubricant coatings, our expert staff and state-of-the-art facilities can get your job done quickly, professionally, and in the most cost-effective manner possible. We can provide turn-key solutions, coating application components or tactical services to extend the life of your equipment.