NACE Releases IMPACT Report on Corrosion Technologies
Posted: 2016-3-14
EXECUTIVE SUMMARY
NACE International initiated the International Measures of Prevention, Application, and Economics of Corrosion Technologies (IMPACT) study to examine the current role of corrosion management in industry and government and to establish best practices.
The global cost of corrosion is estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global Gross Domestic Product (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, an astronomical savings. In addition, these costs typically do not include individual safety or environmental consequences. The high cost of corrosion has been known for years; Uhlig performed a comprehensive study in 1949 that revealed a cost of corrosion equivalent to 2.5% of the U.S. GDP.
The Global Impact of Corrosion
The global cost of corrosion is estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global Gross Domestic Product (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, an astronomical savings. In addition, these costs typically do not include individual safety or environmental consequences. The high cost of corrosion has been known for years; Uhlig performed a comprehensive study in 1949 that revealed a cost of corrosion equivalent to 2.5% of the U.S. GDP.
The fact that corrosion control provides a cost benefit is a lesson learned over and over again by industry, often too late and following catastrophic events (e.g., accidents, failures, and loss of production). To achieve the full extent of potential savings, it is the conclusion of this study that implementing a Corrosion Management System (CMS) and its integration into an organization’s overall management system is mandatory.
A difficulty in promoting corrosion management is that cost savings from corrosion control are difficult to measure; i.e., (i) maintenance costs slowly decrease; (ii) monitoring or inspection costs decrease or inspection intervals increase; (iii) fewer failures save lost production time and/or lost product, decrease injuries, decrease in property damage, decrease in environmental release, improved public relations; and (iv) life extension of the asset can go directly to the bottom-line and/or postpone capital expenditures. All of these can be included in the business case for enhanced corrosion management.
One corrosion management success story is the change in corrosion management strategy and application of innovative technology in the automotive industry globally. Since 1975, the manufacturers have created a coordinated and balanced effort between advances in design, materials, and processing. This was not a quick turnaround, but one of continuous improvement over a relatively long time period of all aspects of corrosion-related design and processing decisions. The transformation in corrosion management strategy by the automotive industry was a decision at the highest levels of an organization, resulting in lower corrosion-related manufacturing costs, lower corrosion-related operating costs, and longer life of automobiles for the buying public.
Read the full article at http://impact.nace.org/documents/Nace-International-Report.pdf
NACE International initiated the International Measures of Prevention, Application, and Economics of Corrosion Technologies (IMPACT) study to examine the current role of corrosion management in industry and government and to establish best practices.
The global cost of corrosion is estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global Gross Domestic Product (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, an astronomical savings. In addition, these costs typically do not include individual safety or environmental consequences. The high cost of corrosion has been known for years; Uhlig performed a comprehensive study in 1949 that revealed a cost of corrosion equivalent to 2.5% of the U.S. GDP.
The Global Impact of Corrosion
The global cost of corrosion is estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global Gross Domestic Product (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, an astronomical savings. In addition, these costs typically do not include individual safety or environmental consequences. The high cost of corrosion has been known for years; Uhlig performed a comprehensive study in 1949 that revealed a cost of corrosion equivalent to 2.5% of the U.S. GDP.
The fact that corrosion control provides a cost benefit is a lesson learned over and over again by industry, often too late and following catastrophic events (e.g., accidents, failures, and loss of production). To achieve the full extent of potential savings, it is the conclusion of this study that implementing a Corrosion Management System (CMS) and its integration into an organization’s overall management system is mandatory.
A difficulty in promoting corrosion management is that cost savings from corrosion control are difficult to measure; i.e., (i) maintenance costs slowly decrease; (ii) monitoring or inspection costs decrease or inspection intervals increase; (iii) fewer failures save lost production time and/or lost product, decrease injuries, decrease in property damage, decrease in environmental release, improved public relations; and (iv) life extension of the asset can go directly to the bottom-line and/or postpone capital expenditures. All of these can be included in the business case for enhanced corrosion management.
One corrosion management success story is the change in corrosion management strategy and application of innovative technology in the automotive industry globally. Since 1975, the manufacturers have created a coordinated and balanced effort between advances in design, materials, and processing. This was not a quick turnaround, but one of continuous improvement over a relatively long time period of all aspects of corrosion-related design and processing decisions. The transformation in corrosion management strategy by the automotive industry was a decision at the highest levels of an organization, resulting in lower corrosion-related manufacturing costs, lower corrosion-related operating costs, and longer life of automobiles for the buying public.
Read the full article at http://impact.nace.org/documents/Nace-International-Report.pdf
