july 2002 supplement to materials performance 1€¦ · als and designing corrosion prevention and...

July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 1

2 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002

Cost of CorrosionStudy Unveiled

The U.S. Federal Highway Administration (FHWA) recently released a break-through 2-year study on the direct costs associated with metallic corrosion innearly every U.S. industry sector, from infrastructure and transportation to pro-duction and manufacturing. Initiated by NACE International—The CorrosionSociety and mandated by the U.S. Congress in 1999 as part of the Transporta-

tion Equity Act for the 21st Century (TEA-21), the study provides current cost esti-mates and identifies national strategies to minimize the impact of corrosion.

The study, entitled “Corrosion Costs and Preventive Strategies in the United States,”was conducted from 1999 to 2001 by CC Technologies Laboratories, Inc. with sup-port from the FHWA and NACE. Its main activities included determining the cost ofcorrosion control methods and services, determining the economic impact of corro-sion for specific industry sectors, extrapolating individual sector costs to a nationaltotal corrosion cost, assessing barriers to effective implementation of optimized cor-rosion control practices, and developing implementation strategies and cost-savingrecommendations.

Results of the study show that the total annual estimated direct cost of corrosion inthe U.S. is a staggering $276 billion—approximately 3.1% of the nation’s Gross Do-mestic Product (GDP). It reveals that, although corrosion management has improvedover the past several decades, the U.S. must find more and better ways to encourage,support, and implement optimal corrosion control practices.

The following pages feature major findings from the new study, including costs byindustry sector and preventive corrosion control strategies that could save billions ofdollars per year. In addition to reducing expenses substantially, corrosion preventionand control is critical to protecting public safety and the environment. This importantstudy will inevitably be reviewed and cited for decades to come.

Table of Contents

Corrosion—A Natural butControllable Process .................................................. 3

Corrosion Costs by Industry Sector ......................... 4

Best-Practice Engineering SavesBillions of Dollars ....................................................... 9

Moving Forward—Preventive Strategies ............................................... 11

“Corrosion Costs and PreventiveStrategies in the United States”PUBLICATION NO. FHWA-RD-01-156

AuthorsGerhardus H. Koch, Michiel P.H.Brongers, and Neil G. ThompsonCC Technologies Laboratories, Inc.,Dublin, Ohio

Y. Paul VirmaniU.S. Federal HighwayAdministration, Turner-FairbankHighway Research Center, McLean,Virginia

J.H. PayerCase Western Reserve University,Cleveland, Ohio

EDITORIALM A N A G I N G E D I T O RGRETCHEN A. JACOBSONT E C H N I C A L E D I T O R

JOHN H. FITZGERALD III, FNACES TA F F W R I T E R

MATTHEW V. VEAZEYA S S I S TA N T E D I T O R

APRIL SEARS

GRAPHICSE L E C T R O N I C S P U B L I S H I N G S P E C I A L I S T

TERI J. GILLEYM A N A G E R

E. MICHELE SANDUSKY

ADMINISTRATIONN A C E E X E C U T I V E D I R E C T O RD I R E C T O R — P U B L I C AT I O N S

JEFF H. LITTLETONE D I T O R I A L A S S I S TA N T

SUZANNE MORENO

ADVERTISINGA D V E R T I S I N G C O O R D I N AT O R

STACIA L. HOWELLR E G I O N A L A D V E R T I S I N G S A L E S

R E P R E S E N TAT I V E SNELSON & MILLER ASSOCIATES

NEW YORK/NEW ENGLAND/PHILADELPHIA AREA–914/591-5053

THE KINGWILL CO.CHICAGO/CLEVELAND AREA–847/537-9196

THE KELTON GROUP–ATLANTA AREA–404/252-6510

MEDIA NETWORK EUROPE–EUROPE–00 44 20 78347676

NACE INTERNATIONAL CONTACT INFORMATIONPhone: 281/228-6200 Fax: 281/228-6300

E-mail: [email protected] Web site: www.nace.org

EDITORIAL ADVISORY BOARDEugene Bossie

Corrpro Companies, Inc.John P. Broomfield

Corrosion ConsultantRaul A. Castillo

The Dow Chemical Co.Irvin Cotton

Arthur Freedman Associates, Inc.Arthur J. Freedman

Arthur Freedman Associates, Inc.Orin Hollander

Holland TechnologiesW. Brian Holtsbaum

CC Technologies, Inc.Otakar JonasJonas, Inc.

Ernest KlechkaCorrMet Engineering Services

Joram LichtensteinCorrosion Control Specialist, Inc.

George D. MillsGeorge Mills & Associates International, Inc.

James “Ian” MunroCorrosion Service Co., Ltd.

John S. Smart IIIJohn Smart Consulting Engineers

L.D. “Lou” VincentCorrpro Companies, Inc.



Corrosion—A Naturalbut Controllable ProcessC

orrosion is a naturally occur-ring phenomenon commonlydefined as the deterioration ofa substance (usually a metal) orits properties because of a re-

action with its environment. Like othernatural hazards such as earthquakes orsevere weather disturbances, corrosioncan cause dangerous and expensivedamage to everything from automobiles,home appliances, and drinking watersystems to pipelines, bridges, and pub-lic buildings. Over the past 22 years, theU.S. has suffered 52 major weather-related disasters—including hurricanes,tornadoes, tropical storms, floods, fires,droughts, and freezes—incurring totalnormalized losses of more than $380billion1 (averaging $17 billion annually).According to the current U.S. corrosionstudy, the direct cost of metallic corro-sion is $276 billion on an annual ba-sis. This represents 3.1% of the U.S.Gross Domestic Product (GDP) (Figure1). Unlike weather-related disasters,however, corrosion can be controlled,but at a cost.

Corrosion Control MethodsVarious time-proven methods for

preventing and controlling corrosion

depend on the specific material to beprotected; environmental concernssuch as soil resistivity, humidity, andexposure to saltwater or industrial en-vironments; the type of product to beprocessed or transported; and manyother factors. The most commonlyused methods include organic andmetallic protective coatings; corrosion-resistant alloys, plastics, and polymers;corrosion inhibitors; and cathodic pro-tection—a technique used on pipe-lines, underground storage tanks, andoffshore structures that creates an elec-trochemical cell in which the surfaceto be protected is the cathode and cor-rosion reactions are mitigated.

The study analyzed costs associatedwith each of these methods, as well asthe cost of corrosion control services,research and development, and educa-tion and training. It estimated that re-lated total direct costs were $121 billion,or 1.38% of the U.S. GDP. The largestportion of this cost (88.3%) was attrib-uted to organic coatings. These costs donot represent the total costs associatedwith corrosion control methods becausethey do not include labor and manage-ment related to the development, de-sign, and implementation of corrosion

ment practices were employed. (See“Best Engineering Practices Saves Bil-lions of Dollars,” p. 9, and “Moving For-ward—Preventive Strategies,” p. 11.)

The bottom line is that the use ofappropriate corrosion prevention andcontrol methods protects public safety,prevents damage to property and theenvironment, and saves billions of dol-lars in the U.S. and worldwide.

Reference1. T. Ross, N. Lott, “Billion Dollar U.S. Weather

Disasters, 1980-2001” (Asheville, NC: National Cli-

matic Data Center, National Oceanic and Atmospheric

Administration, 2001).

FIGURE 1

The impact of corrosion on the U.S. economy.

Direct Corrosion Costs: $276 billion (3.1% of U.S. GDP)

1998 U.S. GDP ($8.79 trillion)

prevention sys-tems—a major ex-pense for theowner/operator.

How Much CanBe Saved?

Corrosion is soprevalent and takesso many forms thatits occurrence andassociated costscannot be elimi-nated completely.However, it hasbeen estimated that25 to 30% of annualcorrosion costs inthe U.S. could besaved if optimumcorrosion manage-


Per Capita Impact ofCorrosion

Corrosion affects our society on a dailybasis, causing degradation and damage tohousehold appliances, automobiles, air-planes, highway bridges, energy productionand distribution systems, and much more.The cost of controlling this naturally occur-ring phenomenon—and costs associatedwith the damage it causes—is substantial.The current per capita direct cost of corro-sion for U.S. residents, based on July 1, 2001,figures from the U.S. Census, is approxi-mately $970 per person per year. This figuredoes not include indirect/user costs, whichwould essentially double that amount.

Indirect CostsThe study defined the total direct an-

nual corrosion costs as those incurred byowners and operators of structures, manu-facturers of products, and suppliers ofservices. Indirect costs include such fac-tors as lost productivity because of out-ages, delays, failures, and litigation; taxesand overhead on the cost of corrosion por-tion of goods and services; and indirectcosts of nonowner/operator activities. Thestudy conservatively estimated the indi-rect cost to be equal to the direct cost, fora total of $552 billion. This represents 6%of the GDP.


Corrosion Costs byIndustry Sector

way bridges, gas and liquid transmis-sion pipelines, waterways and ports,hazardous materials storage, airports,and railroads. The annual direct costin this category was estimated to be$22.6 billion (Figure 2).

HIGHWAYBRIDGESThere are ap-

p r o x i m a t e l y583,000 bridgesin the U.S. Of thistotal, 200,000 areconstructed ofsteel, 235,000are conventionalreinforced con-crete, 108,000 are constructed usingprestressed concrete, and the balanceis made with other construction mate-rials. Approximately 15% of thesebridges are structurally deficient be-cause of corroded steel and steel rein-forcement. Annual direct cost esti-mates total $8.3 billion, including $3.8billion to replace deficient bridges overthe next 10 years, $2 billion for main-tenance and capital costs for concretebridge decks and $2 billion for theirconcrete substructures, and $0.5 bil-lion for maintenance painting of steelbridges. Indirect costs to the user, suchas traffic delays and lost productivity,were estimated to be as high as 10times that of direct corrosion costs.

GAS AND LIQUIDTRANSMISSION PIPELINES

Corrosion is the primary factor af-fecting the longevity and reliability ofpipelines that transport crucial energysources throughout the nation. Thereare more than 528,000 km (328,000miles) of natural gas transmission andgathering pipelines, 119,000 km(74,000 miles) of crude transmissionand gathering pipelines, and 132,000km (82,000 miles) of hazardous liquidtransmission pipelines. The averageannual corrosion-related cost is esti-mated at $7 billion to monitor, replace,and maintain these assets. The corro-sion-related cost of operation and main-tenance makes up 80% of this cost.

FIGURE 1

COST OF CORROSION IN INDUSTRY CATEGORIES($137.9 BILLION)

Percentage and dollar contribution to the total cost of corrosion for the five sectorcategories analyzed.

Infrastructure16.4%

($22.6 billion)

Utilities34.7%

($47.9 billion)

Government14.6%

($20.1 billion)

Production andManufacturing

12.8%($17.6 billion)

Transportation21.5%

($29.7 billion)

InfrastructureThe aging infrastructure is one of

the most serious problems faced bysociety today. In past decades, corro-sion professionals focused primarily onnew construction—specifying materi-als and designing corrosion preventionand control systems for buildings,

bridges, roads, plants, pipelines, tanks,and other key elements of the infra-structure. Today, as much of the aginginfrastructure reaches the end of its de-signed lifetime, the emphasis is onmaintaining and extending the life ofthese valuable assets.

Infrastructure in this study was di-vided into the following sectors: high-

The U.S. economy was divided into five major sector categories for analysis in the corrosion cost

study, and these were further broken down into 26 sectors.The categories were infrastructure, utilities, transportation,production and manufacturing, and government. Whenadded together, the total direct cost of corrosion for thesesectors was $137.9 billion (Figure 1). This figure was thenextrapolated to the total U.S. economy ($8.79 trillion) for anannual cost of corrosion of $276 billion.


WATERWAYS AND PORTSU.S. waterways and ports play a vital

role in moving people and commercethroughout the U.S. There are 40,000km (25,000 miles) of commercial navi-gable waterways that serve 41 states,with hundreds of locks that facilitatetravel. Corrosion is typically found onpiers and docks, bulkheads and retain-ing walls, mooring structures, and navi-gational aids. There is no formal track-ing of corrosion costs for these struc-tures; however, the study estimated anannual cost of $0.3 billion based on in-formation from the U.S. Army Corps ofEngineers and the U.S. Coast Guard. Thisis a low estimate because corrosion costsfor harbor and other marine structureswere not included.

HAZARDOUS MATERIALSSTORAGE

The U.S. has approximately 8.5 mil-lion aboveground and undergroundstorage tanks (ASTs and USTs) that con-tain hazardous materials (HAZMAT).Government regulators have focusedmuch attention on corrosion and otherproblems with these structures in re-cent years because of leaks thatthreaten public safety and the environ-ment. Tank owners must now complywith requirements mandated by theU.S. Environmental Protection Agencyfor corrosion control and overfill andspill protection or face substantialcosts related to cleanup and penalties.The study determined that the totalannual direct cost of corrosion for

HAZMAT storage is $7 billion—$4.5 bil-lion for ASTs and $2.5 billion for USTs.

AIRPORTSThe U.S. has the world’s most ex-

tensive airport system, with 5,324 pub-lic-use and 13,774 private-use airports.Airport infrastructure components sus-ceptible to corrosion include naturalgas and jet fuel storage and distributionsystems, vehicle fueling systems, natu-ral gas feeders, dry fire lines, parkinggarages, and runway lighting. Each ofthese systems is generally owned oroperated by different organizations, sothe impact of corrosion on airports is

not known or documented and couldnot be quantified in the study.

RAILROADSThe U.S. railroad industry operates

274,399 km (170,508 miles) of railwaysthroughout the country, includingClass I freight, re-gional, and local rail-roads. The elementssubject to corrosion in-clude metal parts suchas rail and steel spikes.However, corrosiondamage to railroadcomponents is eitherlimited or goes unre-ported, so an accurateestimate of corrosioncost could not be de-termined.

UtilitiesUtilities, which supply gas, water,

electricity, and telecommunicationsservices, account for the largest por-tion of annual industrial corrosioncosts. Direct corrosion costs total$47.9 billion. These costs are brokendown into the sectors of gas distribu-tion, drinking water and sewer sys-tems, electrical utilities, and telecom-munications (Figure 3).

FIGURE 2

INFRASTRUCTURE ($22.6 BILLION)

Highway Bridges37%

($8.3 billion)

Gas and LiquidTransmission

Pipelines31%

($7 billion)

Waterways and Ports1%

($0.3 billion)

HAZMAT Storage31%

($7 billion)

Annual cost of corrosion in the infrastructure category.

FIGURE 3

UTILITIES ($47.9 BILLION)

Annual cost of corrosion in the utilities category.

Drinking Water andSewer Systems

75%($36 billion)

Electrical Utilities14%

($6.9 billion)

Gas Distribution10%

($5 billion)


GAS DISTRIBUTIONThe nation’s natural gas distribution

system has 2,785,000 km (1,730,000miles) of relatively small-diameter, low-pressure piping that includes 1,739,000km (1,080,000 miles) of distributionmains and 1,046,000 km (650,000miles) of services. Many mains (57%)and service pipelines (46%) are madeof steel, cast iron, or copper, which aresubject to corrosion. The total annualdirect cost of corrosion was estimatedto be $5 billion.

DRINKING WATER ANDSEWER SYSTEMS

According to the American Water-works Association (AWWA) industrydatabase, there are approximately1,483,000 km (876,000 miles) of mu-nicipal water piping in the U.S. Thesewer system consists of 16,400 pub-licly owned treatment facilities that re-lease some 155 million m3 (41 billiongal) of waste water per day. The totalannual direct cost of corrosion fordrinking water and sewer systems is$36 billion, which includes the costsof replacing aging infrastructure, lost

water from unaccounted-for leaks, cor-rosion inhibitors, internal mortar lin-ings, external coatings, and cathodicprotection.

ELECTRICAL UTILITIESElectricity-generating plants can be

divided into seven generic types: fos-sil fuel, nuclear, hydroelectric, cogen-eration, geothermal, solar, and wind.The majority of electrical power in theU.S. is generated by fossil fuel andnuclear supply systems. The direct costattributed to corrosion was $6.9 billion,with the largest amounts for nuclearpower ($4.2 billion), followed by fossilfuel ($1.9 billion), hydraulic and otherpower ($0.15 billion), and transmissionand distribution ($0.6 billion).

TELECOMMUNICATIONSThe telecommunications infrastruc-

ture includes hardware such as elec-tronics, computers, and data transmit-ters, as well as equipment shelters andthe towers used to mount antennas,transmitters, receivers, and televisionand telephone systems. Towers andshelters are commonly painted or gal-vanized for corrosion protection. Costsare also associated with corrosion ofburied copper grounding beds and gal-

vanic corrosion of grounded steelstructures. However, no corrosion costwas determined for the telecommuni-cations sector because of a lack of in-formation in this rapidly changing in-dustry. In addition, many componentsare being replaced before failure be-cause their technology quickly be-comes obsolete.

TransportationThe transportation category in-

cludes vehicles and equipment, suchas motor vehicles, aircraft, rail cars, andHAZMAT transport. The annual corro-sion cost in this category is $29.7 bil-lion (Figure 4).

MOTOR VEHICLESU.S. consumers, businesses, and

government organizations own morethan 200 million registered motor ve-hicles. Car manufacturers have dra-matically increased the corrosion resis-

FIGURE 4

TRANSPORTATION ($29.7 BILLION)

Electric Power IndustryCorrosion Cost Study

The Electric Power Research Insti-tute (EPRI) (Palo Alto, California) pub-lished a study in October 2001 (EPRIreport 1004662) on the cost of corro-sion in the electric power industry (seeMarch 2002 MP, p. 18). Conducted by

Dominion Engineering,Inc., Duke Power Co.,and CC Technologies,Inc., the study brokedown the cost of cor-rosion by componentand cost category andmade recommenda-tions for optimum cor-rosion managementstrategies. The samemethods were used todevelop direct cost

data for the nationwide U.S. study andthe EPRI study; however, the EPRI studyalso included indirect costs. It reportedtotal corrosion-related costs of $17.3billion for the electric power industryvs the $6.9 billion in direct costs esti-mated by the U.S. study.

Annual cost of corrosion in the transportation category.

Motor Vehicles79%

($23.4 billion)

Ships9%

($2.7 billion)

Aircraft7%

($2.2 billion)

HAZMAT Transport3%

($0.9 billion)

RailroadCars2%

($0.5 billion)


tance of vehicles over the past twodecades by using corrosion-resistantmaterials, better manufacturing pro-cesses, and more effective engineeringand design. The study points out thatindividual components could be fur-ther improved. The total annual directcost of corrosion was estimated at$23.4 billion, with $14.46 billion attrib-uted to corrosion-related depreciationof vehicles. Another $6.45 billion isspent on repairs and maintenancemade necessary by corrosion, and$2.56 billion represents increasedmanufacturing costs from corrosionengineering and the use of corrosion-resistant materials.

SHIPSThe number of ships in the U.S. in-

cludes 737 vessels on the Great Lakes,33,668 inland and 7,014 ocean vessels,12.3 million recreational boats, and122 cruise ships serving North Ameri-can ports. The shipping industry costof corrosion is $2.7 billion, brokendown into new ship construction ($1.1billion), maintenance and repairs ($0.8billion), and corrosion-related down-time ($0.8 billion).

AIRCRAFTIn 1998, the

combined com-mercial aircraftfleet operated byU.S. airlines num-bered more than7,000 airplanes.Airplanes aging be-yond their 20-yeardesign life are ofgreatest concernbecause only re-cent designs haveincorporated sig-nificant improve-

ments in corrosion prevention duringengineering and manufacturing. Totaldirect annual corrosion costs are esti-mated to be $2.2 billion, including thecost of design and manufacturing ($0.2billion), corrosion maintenance ($1.7billion), and downtime ($0.3 billion).

RAILROAD CARSThere are approximately 1.3 million

freight cars and 1,962 passenger cars op-erating in the U.S. Covered hoppers(28%) and tanker cars (18%) make upthe largest segment of the freight carfleet. The transported commoditiesrange from coal, chemicals, ores, andminerals to motor vehicles and farm andfood products. Railroad cars suffer bothexternal and internal corrosion, with atotal estimated corrosion cost of $0.5billion. This cost is divided equally be-tween the use of external coatings andinternal coatings and linings.

HAZARDOUS MATERIALSTRANSPORT

According to the U.S. Departmentof Transportation, there are approxi-mately 300 million hazardous materialshipments of more than 3.1 billionmetric tons annually in the U.S. Bulktransport over land includes shipping

by tanker truck and rail car and by spe-cial containers on vehicles. The totalannual direct cost of corrosion for thissector is more than $0.9 billion, whichincludes the cost of transporting ve-hicles ($0.4 billion) and of specializedpackaging ($0.5 billion), as well ascosts associated with accidental re-leases and corrosion-related transpor-tation incidents.

Production andManufacturing

This category includes industries thatproduce and manufacture products ofcrucial importance to the U.S. economyand its residents’ standard of living.These include oil production, mining,petroleum refining, chemical and phar-maceutical production, and agriculturaland food production. The total annualdirect cost of corrosion for productionand manufacturing is estimated to be$17.6 billion (Figure 5).

OIL AND GAS EXPLORATIONAND PRODUCTION

Domestic oil and gas production isconsidered a stagnant industry in theU.S. because most of the significant avail-able reserves have been exploited. Di-rect corrosion costs associated with this

FIGURE 5

PRODUCTION AND MANUFACTURING ($17.6 BILLION)

Annual cost of corrosion in the production & manufacturing category.

Pulp and Paper34%

($6 billion)

Petroleum Refining21%

($3.7 billion)

Chemical,Petrochemical,Pharmaceutical

10%($1.7 billion)Agricultural

6%($1.1 billion)

Food Processing12%

($2.1 billion)

Home Appliances9%

($1.5 billion)

Oil and GasExploration and

Production8%

($1.4 billion)

Mining1%

($0.1 billion)


activity were determined to be about$1.4 billion, with $0.6 billion attributedto surface piping and facility costs, $0.5billion to downhole tubing, and $0.3 bil-lion to capital expenditures related tocorrosion.

MININGCorrosion is not considered a signifi-

cant problem in mining operations.The primary life-limiting factors formining equipment are wear and me-chanical damage. Maintenance paint-ing, however, is heavily relied upon toprevent corrosion, with an estimatedannual expenditure of $0.1 billion.

PETROLEUM REFININGU.S. refineries represent approxi-

mately 23% of the world’s petroleumproduction—the largest refining ca-pacity in the world. The nation’s 163refineries supplied more than 18 mil-lion barrels per day of refined petro-leum products in 1996, with a total cor-rosion-related direct cost of $3.7billion. Maintenance expenses makeup $1.8 billion of this total, vessel ex-penses are $1.4 billion, and foulingcosts are approximately $0.5 billionannually.

CHEMICAL, PETROCHEMICAL,AND PHARMACEUTICAL

PRODUCTIONThe chemical industry includes

those manufacturing facilities that pro-duce bulk or specialty compoundsfrom chemical reactions between or-ganic and/or inorganic materials. Thepetrochemical industry includes facili-ties that manufacture substances fromraw hydrocarbon materials such ascrude oil and natural gas. The pharma-ceutical industry formulates, fabricates,and processes medicinal products fromraw materials. Annual direct costs to-tal $1.7 billion for this sector (8% ofcapital expenditures). This does not in-clude corrosion costs related to opera-tion and maintenance—this would re-quire detailed study of data fromindividual companies.

PULP AND PAPERThe $165 billion pulp, paper, and al-

lied products industry supplies the U.S.with approximately 300 kg of paper perperson each year. More than 300 pulp

mills and 550 paper mills support its pro-duction. The harsh processing environ-ments of these facilities make corrosioncontrol especially costly and challeng-ing. The direct annual cost for this sec-tor is $6 billion, calculated as a fractionof the overall maintenance costs.

AGRICULTURAL PRODUCTIONAccording to the National Agricul-

tural Statistics Service, about 1.9 millionfarms in the U.S. produce livestock andcrops. The primary reasons for replac-ing machinery or equipment includeupgrading and damage from wear andcorrosion. The corrosion cost in this in-dustry was estimated to be $1.1 billion,based on the assumption that corrosioncosts represent 5 to 10% of the value ofall new equipment.

FOOD PROCESSINGThe food-processing industry is one

of the largest manufacturing industriesin the nation, accounting for approxi-mately 14% of total manufacturing out-put. Stainless steel (SS) is widely used inthis industry because of food quality re-quirements. The total estimated corro-sion cost is $2.1 billion, including SSused for beverage production, food ma-chinery, cutlery and utensils, commer-cial and restaurant equipment, appli-ances, aluminum cans, and the use ofcorrosion inhibitors.

ELECTRONICSComputers, integrated circuits, and

microchips are exposed to a variety ofenvironmental conditions, and corro-sion manifests itself in several ways. It isalso insidious and cannot be readily de-tected; therefore, when corrosion fail-ure occurs, it is often dismissed as aproduct failure and the component is re-placed. Although the cost of corrosionin this industry could not be estimated,it is believed that a significant part of allelectric component failures is caused bycorrosion.

HOME APPLIANCESThe appliance industry is one of the

largest consumer products industries.The cost of corrosion in home appli-ances includes the cost of purchasing re-placement appliances because of prema-ture failures caused by corrosion. Forwater heaters alone, the replacementcost was estimated at $460 million peryear, with at least 5% being corrosion-related. The cost of internal corrosionprotection for all appliances includes theuse of sacrificial anodes ($780 millionper year), corrosion-resistant materials,and internal coatings. The annual costof external corrosion protection withcoatings was estimated at $260 million.Total annual direct corrosion costs areat least $1.5 billion.

GovernmentAlthough federal, state, and local

governments own and operate signifi-cant assets under various departments,the U.S. Department of Defense was se-lected for analysis in the study becauseit strongly affects the U.S. economy.The nuclear waste storage sector wasalso analyzed.

DEFENSECorrosion

of militaryequipmentand facilitieshas been anongoing prob-lem that is becoming more prominentas the acquisition of new equipmentslows down. Corrosion is potentially thenumber one cost driver in lifecycle costsin this sector—approximately $20 bil-lion per year.

NUCLEAR WASTE STORAGENuclear wastes are generated from

spent fuel, dismantled nuclear weapons,and products such as radio pharmaceu-ticals. The most important design con-sideration for safe storage of nuclearwaste is effective shielding of radiation.A 1998 total lifecycle analysis by the U.S.Department of Energy for the perma-nent disposal of nuclear waste in YuccaMountain, Nevada, estimated the reposi-tory cost by the construction phase(2002) to be $4.9 billion with an aver-age annual cost of $205 million through2116. Of this cost, $42.2 million is cor-rosion-related.


Transmission PipelinesPublic safety concerns have driven

new regulations and corrosion controlpractices for gas and liquid transmis-sion pipelines over the past few years,following a number of high-profilepipeline failures. Data management,system quantification through the useof global positioning systems, remote

veloping an optimum approach thatincludes both pipeline inspection andcorrosion prevention strategies. In-spection strategies should include in-line inspection, hydrostatic testing, anddirect assessment—all currently avail-able methodologies—depending onthe pipeline conditions. By developingnew and improved inspection tech-niques and corrosion prediction mod-els, corrosion professionals will be ableto determine inspection intervals moreaccurately, prioritize the most effectivecorrosion-prevention strategies, and,ultimately, increase the lifetime of thenation’s pipelines, ensuring safe andcost-effective transport of valuable en-ergy sources.

Highway BridgesThe dollar impact of corrosion on

reinforced-concrete, prestressed con-crete, and steel bridges is considerable,

Best-PracticeEngineering SavesBillions of Dollars

For decades, corrosion professionals havemade great strides in developing cutting-

edge technologies, employing effective managementpractices, and increasing public awareness about thecritical need for corrosion control worldwide. The U.S.corrosion cost study has determined, however, thatincorporating the latest corrosion control strategiesstill requires widespread changes in industrymanagement and government policies as well asadditional advances in science and technology. As thefollowing examples show, implementation of best-practice engineering in every sector could savebillions of dollars in the long run.

but the indirect costs—those incurredby users—increase expenses tenfold.For example, a traffic tie-up or detourcaused by a bridge failure or its reha-bilitation and maintenance can resultin wear and tear on automobiles, in-creased gasoline use, delays in producttransport, missed appointments, andother inconveniences that result in lostdollars.

A typical dilemma for bridge man-agement is how to allocate limitedfunds for construction, rehabilitation,and maintenance. Funding typicallycomes from city, state, and federalsources that often have spending re-strictions. It is therefore difficult tomake optimal decisions about whenand how to inspect, repair, or replacebridges while minimizing the impacton drivers. The study identifies an ur-gent need for the allocation of greaterfunding so bridge engineers can prop-erly maintain the structures based ontimely inspections. Increasing use ofcorrosion-resistant alloys, improvedcoatings, and durable concretes willfurther reduce the large direct and in-direct expenses associated with bridgecorrosion.

monitoring, andelectronic equip-ment documentshave significantlyimproved severalareas of pipelinecorrosion mainte-nance. The new-est developmentscenter on risk as-

sessment strategies and pipeline integ-rity management programs.

The study has determined that ma-jor cost savings can be realized by de-


Water DistributionIn 2000, the Water Infrastructure

Network (WIN) reported that the ag-ing water distribution infrastructurerequires major investments for main-tenance and replacement of pipes andmainlines. Substantial amounts of wa-ter are lost from corroded and rupturedmains, resulting in inflated water pric-ing for consumers and overcapacity inwater treatment plants. Corrosion pro-fessionals are striving to use economi-cal repair and replacement methodolo-gies while maintaining ongoingservice.

Water transmission and distributionsystems can be effectively protectedfrom internal corrosion by using cor-rosion inhibitors in combination withpH adjusters and alkalinity control.Cement mortar linings resist corrosionin steel and iron pipes, and pipes canbe externally protected with coatingsand cathodic protection. These sys-tems, when applied correctly bytrained professionals, help preventcostly repairs and repaving—expensesthat currently make up about 50% ofwater department budgets.

Unfortunately, there is a lack ofcomplete and up-to-date informationon all water systems, with limited com-munication among water utilities and,thus, limited awareness and implemen-tation of available corrosion controltechnologies. The study recommendsestablishing a national effort to de-crease the amount of unaccounted-forwater and create a resource where

agencies can obtain training and sup-port for corrosion protection plans. Italso stresses the importance of regu-larly scheduled corrosion inspectionsfor water treatment facilities, watertanks, towers, and transmission anddistribution systems.

AircraftOne of the major concerns of the

aircraft and airline industry is the ag-ing of several types of aircraft beyondtheir design life. Airline operators havebeen mandating more frequent inspec-tions and maintenance in past years inresponse to considerable attentionfrom industry and the governmentabout the safety of older planes. Al-though key improvements have beenmade in the corrosion design andmanufacturing of new airplanes, in-cluding using more corrosion-resistantmaterials, operators should have agood corrosion control program inplace throughout the life of the air-plane.

The study identifies the need to de-velop corrosion prediction models thathelp define a cost-effective integrityprogram. Improved inspection andmonitoring techniques will expand thecapabilities of detecting and monitor-ing flaws from an early stage, prevent-ing much bigger and costlier problemsin the future.

AutomobilesUntil the late 1950s, corrosion of

motor vehicles was a concern largelylimited to marine environments. In sub-sequent years, the increasing use ofdeicing salts for roadways and bridgescaused vehicles in the snowbelt areaof the U.S. to corrode and fall apartwithin a few years of their initial pur-chase. Fortunately, cars and trucksmanufactured in recent decades havevery little visible corrosion because ofvast improvements in manufacturingand design technologies. The annualcost of corrosion is still substantial,however, and more can be done to re-duce this cost.

According to the study, automobilemanufacturers should build on the his-tory and success of today’s corrosion-resistant vehicles. Every new vehicleshould be designed to minimize corro-sion, built to meet high quality stan-dards, and constructed of corrosion-resistant materials where appropriate.The study predicts that the competi-tive nature of the automobile industryensures that a good balance betweencorrosion resistance and vehicle costwill probably be achieved.


The current corrosion cost studyclearly reveals that, while tech-nological advancements haveprovided many new ways toprevent corrosion, better corro-

sion management can be achieved usingpreventive strategies in nontechnical andtechnical areas. These strategies are iden-tified as follows:

■ Increase awareness of significantcorrosion costs and potential costsavings.

■ Change the misconception that noth-ing can be done about corrosion.

■ Change policies, regulations, stan-dards, and management practices to in-crease corrosion cost savings throughsound corrosion management.

■ Improve education and training of staffin the recognition of corrosion control.

■ Implement advanced design practicesfor better corrosion management.

■ Develop advanced life-prediction andperformance-assessment methods.

■ Improve corrosion technologythrough research, development, andimplementation.

The U.S. continues to face critical chal-lenges in the field of corrosion preven-tion and control, where aging equipment,new product formulations, environmen-tal requirements, and strict budgets re-quire corrosion control programs that aredesigned for specific situations by highlyskilled professionals. By following appro-priate strategies and obtaining sufficientresources for corrosion programs, bestengineering practices can be achieved.Controlling corrosion requires significantexpenditures, but the payoff includesincreased public safety, reliable perfor-mance, maximized asset life, environmen-tal protection, and more cost-effectiveoperations in the long run.

Ordering the U.S. ReportTo obtain a copy of “Corrosion

Costs and Preventive Strategies inthe United States,” Report FHWA-RD-01-156, contact the NationalTechnical Information Service,5285 Port Royal Road, Springfield,VA 22161; phone: 703/605-6000;Web site: www.ntis.gov. A techbrief is also available as ReportFHWA-RD-01-157. A limited num-ber of copies are available fromthe R&T Report Center, phone: 301/577-0818; fax: 301/577-1421.

About the Study Participants

The U.S. FHWA commissioned the corrosion cost study through itsTurner-Fairbank Highway Research Center. Turner-Fairbank coordinatesa program of innovative research, development, and technology that ad-dresses the safety, efficiency, and operation needs of the national high-way system. Web site: www.tfhrc.gov.

CC Technologies Laboratories, Inc., an operating company of CC Tech-nologies, conducted the study. The engineering, research, and testingfirm specializes in corrosion, corrosion control, and pipeline and facilityintegrity services. Web site: www.cctechnologies.com.

NACE International, the technical society for corrosion professionalsworldwide, sponsored the study. With approximately 15,000 members,NACE’s mission is to provide education and communicate information toprotect people, assets, and the environment from the effects of corro-sion. Web site: www.nace.org.

Moving Forward—PreventiveStrategies

U.S. Corrosion CostStudy Web Site

Deve lopedand maintainedby CC Technolo-gies, Inc., the Cost of CorrosionWeb site that is associated withthe study features a summary,corrosion cost details by sectorand corrosion control method, rec-ommendations, a slide presenta-tion, downloadable PDF files of thereport, and more. Web site:www.corrosioncost.com.

july 2002 supplement to materials performance 1€¦ · als and designing corrosion prevention and...

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