July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 1

EDITORIAL
MANAGING EDITOR
Cost of Corrosion
Study Unveiled
GRETCHEN A. JACOBSON
TECHNICAL EDITOR
JOHN H. FITZGERALD III, FNACE
S TA F F W R I T E R
MATTHEW V. VEAZEY
A S S I S TA N T E D I T O R
APRIL SEARS
GRAPHICS

ELECTRONICS PUBLISHING SPECIALIST
TERI J. GILLEY
MANAGER
E. MICHELE SANDUSKY
ADMINISTRATION
NACE EXECUTIVE DIRECTOR
D I R E C T O R — P U B L I C AT I O N S
JEFF H. LITTLETON
E D I T O R I A L A S S I S TA N T
SUZANNE MORENO
ADVERTISING
A D V E R T I S I N G C O O R D I N AT O R
STACIA L. HOWELL
REGIONAL ADVERTISING SALES
R E P R E S E N TAT I V E S
NELSON & MILLER ASSOCIATES
NEW YORK/NEW ENGLAND/PHILADELPHIA AREA–
914/591-5053
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CHICAGO/CLEVELAND AREA–847/537-9196
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7676
NACE INTERNATIONAL CONTACT INFORMATION
Phone: 281/228-6200 Fax: 281/228-6300
E-mail: msd@mail.nace.org Web site: www.nace.org
EDITORIAL ADVISORY BOARD
Eugene Bossie
Corrpro Companies, Inc.
John P. Broomfield
Corrosion Consultant
Raul A. Castillo
The Dow Chemical Co.
Irvin Cotton
Arthur Freedman Associates, Inc.
Arthur J. Freedman
Arthur Freedman Associates, Inc.
Orin Hollander
Holland Technologies
W. Brian Holtsbaum
CC Technologies, Inc.
Otakar Jonas
Jonas, Inc.
Ernest Klechka
CorrMet Engineering Services
Joram Lichtenstein
Corrosion Control Specialist, Inc.
George D. Mills
George Mills & Associates International, Inc.
James “Ian” Munro
Corrosion Service Co., Ltd.
John S. Smart III
John Smart Consulting Engineers
L.D. “Lou” Vincent
Corrpro Companies, Inc.
T
he U.S. Federal Highway Administration (FHWA) recently released a break-
through 2-year study on the direct costs associated with metallic corrosion in
nearly every U.S. industry sector, from infrastructure and transportation to pro-
duction and manufacturing. Initiated by NACE International—The Corrosion
Society 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 of
corrosion control methods and services, determining the economic impact of corro-
sion for specific industry sectors, extrapolating individual sector costs to a national
total corrosion cost, assessing barriers to effective implementation of optimized cor-
rosion control practices, and developing implementation strategies and cost-saving
recommendations.
Results of the study show that the total annual estimated direct cost of corrosion in
the 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 improved
over 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 by
industry sector and preventive corrosion control strategies that could save billions of
dollars per year. In addition to reducing expenses substantially, corrosion prevention
and control is critical to protecting public safety and the environment. This important
study will inevitably be reviewed and cited for decades to come.
“Corrosion Costs and Preventive Table of Contents
Strategies in the United States”
PUBLICATION NO. FHWA-RD-01-156 Corrosion—A Natural but
Controllable Process .................................................. 3
Authors
Gerhardus H. Koch, Michiel P.H. Corrosion Costs by Industry Sector ......................... 4
Brongers, and Neil G. Thompson
CC Technologies Laboratories, Inc., Best-Practice Engineering Saves
Dublin, Ohio Billions of Dollars ....................................................... 9
Y. Paul Virmani
Moving Forward—
U.S. Federal Highway Preventive Strategies............................................... 11
Administration, Turner-Fairbank
Highway Research Center, McLean,
Virginia

J.H. Payer
Case Western Reserve University,
Cleveland, Ohio

2 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002

Corrosion—A Natural
but Controllable Process
C
orrosion is a naturally occur- depend on the specific material to be ment practices were employed. (See
ring phenomenon commonly protected; environmental concerns “Best Engineering Practices Saves Bil-
defined as the deterioration ofsuch as soil resistivity, humidity, and lions of Dollars,” p. 9, and “Moving For-
a substance (usually a metal) or
exposure to saltwater or industrial en- ward—Preventive Strategies,” p. 11.)
its properties because of a re-vironments; the type of product to be The bottom line is that the use of
action with its environment. Like other processed or transported; and many appropriate corrosion prevention and
natural hazards such as earthquakes or other factors. The most commonly control methods protects public safety,
severe weather disturbances, corrosion used methods include organic and prevents damage to property and the
can cause dangerous and expensive metallic protective coatings; corrosion- environment, and saves billions of dol-
damage to everything from automobiles, resistant alloys, plastics, and polymers; lars in the U.S. and worldwide.
home appliances, and drinking water corrosion inhibitors; and cathodic pro-
systems to pipelines, bridges, and pub- tection—a technique used on pipe- Reference
1. T. Ross, N. Lott, “Billion Dollar U.S. Weather
lic buildings. Over the past 22 years, the
lines, underground storage tanks, and
Disasters, 1980-2001” (Asheville, NC: National Cli-
U.S. has suffered 52 major weather- offshore structures that creates an elec- matic Data Center, National Oceanic and Atmospheric
related disasters—including hurricanes, trochemical cell in which the surface Administration, 2001).
tornadoes, tropical storms, floods, fires,
to be protected is the cathode and cor-
droughts, and freezes—incurring total rosion reactions are mitigated.
normalized losses of more than $380
billion1 (averaging $17 billion annually).
The study analyzed costs associated Per Capita Impact of
with each of these methods, as well as
According to the current U.S. corrosion the cost of corrosion control services,
Corrosion
Corrosion affects our society on a daily
study, the direct cost of metallic corro-research and development, and educa-
basis, causing degradation and damage to
sion is $276 billion on an annual ba- tion and training. It estimated that re-
household appliances, automobiles, air-
sis. This represents 3.1% of the U.S. lated total direct costs were $121 billion,
planes, highway bridges, energy production
Gross Domestic Product (GDP) (Figure or 1.38% of the U.S. GDP. The largest
and distribution systems, and much more.
1). Unlike weather-related disasters, portion of this cost (88.3%) was attrib-
The cost of controlling this naturally occur-
however, corrosion can be controlled, uted to organic coatings. These costs do
ring phenomenon—and costs associated
but at a cost. not represent the total costs associated
with the damage it causes—is substantial.
with corrosion control methods because
Corrosion Control Methods they do not include labor and manage-
The current per capita direct cost of corro-
Various time-proven methods for ment related to the development, de- sion for U.S. residents, based on July 1, 2001,
preventing and controlling corrosion sign, and implementation of corrosion figures from the U.S. Census, is approxi-
mately $970 per person per year. This figure
prevention sys-
FIGURE 1 does not include indirect/user costs, which
tems—a major ex-
would essentially double that amount.
Direct Corrosion Costs: $276 billion (3.1% of U.S. GDP) pense for the
owner/operator.

How Much Can Indirect Costs

Be Saved? The study defined the total direct an-
Corrosion is so nual corrosion costs as those incurred by
prevalent and takes owners and operators of structures, manu-
so many forms that facturers of products, and suppliers of
its occurrence and services. Indirect costs include such fac-
associated costs tors as lost productivity because of out-
cannot be elimi- ages, delays, failures, and litigation; taxes
nated completely. and overhead on the cost of corrosion por-
However, it has tion of goods and services; and indirect
been estimated that costs of nonowner/operator activities. The
25 to 30% of annual study conservatively estimated the indi-
corrosion costs in rect cost to be equal to the direct cost, for
1998 U.S. GDP ($8.79 trillion) the U.S. could be a total of $552 billion. This represents 6%
saved if optimum of the GDP.
The impact of corrosion on the U.S. economy.
corrosion manage-
July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 3
 Corrosion Costs by way bridges, gas and liquid transmis-
sion pipelines, waterways and ports,
hazardous materials storage, airports,

Industry Sector and railroads. The annual direct cost

in this category was estimated to be
$22.6 billion (Figure 2).

HIGHWAY
BRIDGES
The U.S. economy was divided into five major There are ap-
sector categories for analysis in the corrosion cost proximately
583,000 bridges
study, and these were further broken down into 26 sectors. in the U.S. Of this
The categories were infrastructure, utilities, transportation, total, 200,000 are
production and manufacturing, and government. When constructed of
added together, the total direct cost of corrosion for these steel, 235,000
sectors was $137.9 billion (Figure 1). This figure was then are conventional
extrapolated to the total U.S. economy ($8.79 trillion) for an reinforced con-
crete, 108,000 are constructed using
annual cost of corrosion of $276 billion. prestressed concrete, and the balance
is made with other construction mate-
Infrastructure bridges, roads, plants, pipelines, tanks, rials. Approximately 15% of these
and other key elements of the infra- bridges are structurally deficient be-
The aging infrastructure is one of structure. Today, as much of the aging cause of corroded steel and steel rein-
the most serious problems faced by infrastructure reaches the end of its de- forcement. Annual direct cost esti-
society today. In past decades, corro- signed lifetime, the emphasis is on mates total $8.3 billion, including $3.8
sion professionals focused primarily on maintaining and extending the life of billion to replace deficient bridges over
new construction—specifying materi- these valuable assets. the next 10 years, $2 billion for main-
als and designing corrosion prevention Infrastructure in this study was di- tenance and capital costs for concrete
and control systems for buildings, vided into the following sectors: high- bridge decks and $2 billion for their
FIGURE 1 concrete substructures, and $0.5 bil-
lion for maintenance painting of steel
COST OF CORROSION IN INDUSTRY CATEGORIES bridges. Indirect costs to the user, such
($137.9 BILLION) as traffic delays and lost productivity,
Infrastructure were estimated to be as high as 10
16.4% times that of direct corrosion costs.
($22.6 billion)

GAS AND LIQUID

Utilities TRANSMISSION PIPELINES
34.7% Corrosion is the primary factor af-
($47.9 billion)
fecting the longevity and reliability of
Government pipelines that transport crucial energy
14.6%
($20.1 billion) sources throughout the nation. There
are more than 528,000 km (328,000
miles) of natural gas transmission and
gathering pipelines, 119,000 km
Production and (74,000 miles) of crude transmission
Manufacturing
12.8% and gathering pipelines, and 132,000
($17.6 billion) km (82,000 miles) of hazardous liquid
Transportation
21.5% transmission pipelines. The average
($29.7 billion)
annual corrosion-related cost is esti-
mated at $7 billion to monitor, replace,
and maintain these assets. The corro-
Percentage and dollar contribution to the total cost of corrosion for the five sector
categories analyzed. sion-related cost of operation and main-
tenance makes up 80% of this cost.
4 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002
 FIGURE 2
INFRASTRUCTURE ($22.6 BILLION)
HAZMAT Storage
31%
($7 billion) not known or documented and could
not be quantified in the study.
Highway Bridges
37%
($8.3 billion) RAILROADS
The U.S. railroad industry operates
274,399 km (170,508 miles) of railways
throughout the country, including
Waterways and Ports
1% Class I freight, re-
($0.3 billion) gional, and local rail-
roads. The elements
subject to corrosion in-
Gas and Liquid clude metal parts such
Transmission
Pipelines as rail and steel spikes.
31% However, corrosion
($7 billion)
damage to railroad
Annual cost of corrosion in the infrastructure category. components is either
limited or goes unre-
WATERWAYS AND PORTS HAZMAT storage is $7 billion—$4.5 bil- ported, so an accurate
U.S. waterways and ports play a vital lion for ASTs and $2.5 billion for USTs. estimate of corrosion
role in moving people and commerce cost could not be de-
throughout the U.S. There are 40,000 AIRPORTS termined.
km (25,000 miles) of commercial navi- The U.S. has the world’s most ex-
gable waterways that serve 41 states, tensive airport system, with 5,324 pub- Utilities
with hundreds of locks that facilitate lic-use and 13,774 private-use airports. Utilities, which supply gas, water,
travel. Corrosion is typically found on Airport infrastructure components sus- electricity, and telecommunications
piers and docks, bulkheads and retain- ceptible to corrosion include natural services, account for the largest por-
ing walls, mooring structures, and navi- gas and jet fuel storage and distribution tion of annual industrial corrosion
gational aids. There is no formal track- systems, vehicle fueling systems, natu- costs. Direct corrosion costs total
ing of corrosion costs for these struc- ral gas feeders, dry fire lines, parking $47.9 billion. These costs are broken
tures; however, the study estimated an garages, and runway lighting. Each of down into the sectors of gas distribu-
annual cost of $0.3 billion based on in- these systems is generally owned or tion, drinking water and sewer sys-
formation from the U.S. Army Corps of operated by different organizations, so tems, electrical utilities, and telecom-
Engineers and the U.S. Coast Guard. This the impact of corrosion on airports is munications (Figure 3).
is a low estimate because corrosion costs
for harbor and other marine structures FIGURE 3
were not included. UTILITIES ($47.9 BILLION)
HAZARDOUS MATERIALS Electrical Utilities Gas Distribution
STORAGE 14% 10%
($6.9 billion) ($5 billion)
The U.S. has approximately 8.5 mil-
lion aboveground and underground
storage tanks (ASTs and USTs) that con-
tain hazardous materials (HAZMAT).
Government regulators have focused
much attention on corrosion and other
problems with these structures in re-
cent years because of leaks that
threaten public safety and the environ-
ment. Tank owners must now comply
with requirements mandated by the
U.S. Environmental Protection Agency
for corrosion control and overfill and Drinking Water and
Sewer Systems
spill protection or face substantial 75%
costs related to cleanup and penalties. ($36 billion)
The study determined that the total
annual direct cost of corrosion for Annual cost of corrosion in the utilities category.

July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 5

 Electric Power Industry
Corrosion Cost Study
The Electric Power Research Insti-
tute (EPRI) (Palo Alto, California) pub- vanic corrosion of grounded steel
water from unaccounted-for leaks, cor-
lished a study in October 2001 (EPRI structures. However, no corrosion cost
rosion inhibitors, internal mortar lin-
report 1004662) on the cost of corro- was determined for the telecommuni-
ings, external coatings, and cathodic
sion in the electric power industry (see protection. cations sector because of a lack of in-
March 2002 MP, p. 18). Conducted by formation in this rapidly changing in-
Dominion Engineering, ELECTRICAL UTILITIES dustry. In addition, many components
Inc., Duke Power Co., Electricity-generating plants can be are being replaced before failure be-
and CC Technologies,divided into seven generic types: fos- cause their technology quickly be-
sil fuel, nuclear, hydroelectric, cogen- comes obsolete.
Inc., the study broke
eration, geothermal, solar, and wind.
down the cost of cor-
rosion by component The majority of electrical power in the Transportation
U.S. is generated by fossil fuel and
and cost category and The transportation category in-
made recommenda- nuclear supply systems. The direct cost cludes vehicles and equipment, such
attributed to corrosion was $6.9 billion, as motor vehicles, aircraft, rail cars, and
tions for optimum cor-
rosion management with the largest amounts for nuclear HAZMAT transport. The annual corro-
strategies. The samepower ($4.2 billion), followed by fossil sion cost in this category is $29.7 bil-
methods were used tofuel ($1.9 billion), hydraulic and other lion (Figure 4).
develop direct cost power ($0.15 billion), and transmission
and distribution ($0.6 billion).
data for the nationwide U.S. study and MOTOR VEHICLES
the EPRI study; however, the EPRI study U.S. consumers, businesses, and
also included indirect costs. It reported TELECOMMUNICATIONS government organizations own more
total corrosion-related costs of $17.3 The telecommunications infrastruc- than 200 million registered motor ve-
ture includes hardware such as elec- hicles. Car manufacturers have dra-
billion for the electric power industry
tronics, computers, and data transmit- matically increased the corrosion resis-
vs the $6.9 billion in direct costs esti-
mated by the U.S. study. ters, as well as equipment shelters and
the towers used to mount antennas,
transmitters, receivers, and television
and telephone systems. Towers and
GAS DISTRIBUTION
shelters are commonly painted or gal-
The nation’s natural gas distribution
vanized for corrosion protection. Costs
system has 2,785,000 km (1,730,000
are also associated with corrosion of
miles) of relatively small-diameter, low-
buried copper grounding beds and gal-
pressure piping that includes 1,739,000
km (1,080,000 miles) of distribution FIGURE 4
mains and 1,046,000 km (650,000
miles) of services. Many mains (57%)
TRANSPORTATION ($29.7 BILLION)
and service pipelines (46%) are made
of steel, cast iron, or copper, which are Railroad
subject to corrosion. The total annual Cars
2% HAZMAT Transport
direct cost of corrosion was estimated ($0.5 billion) 3%
to be $5 billion. ($0.9 billion)
Aircraft
7%
DRINKING WATER AND ($2.2 billion)
SEWER SYSTEMS Ships
According to the American Water- 9%
($2.7 billion)
works Association (AWWA) industry
database, there are approximately
Motor Vehicles
1,483,000 km (876,000 miles) of mu- 79%
nicipal water piping in the U.S. The ($23.4 billion)
sewer system consists of 16,400 pub-
licly owned treatment facilities that re-
lease some 155 million m3 (41 billion
gal) of waste water per day. The total
annual direct cost of corrosion for
drinking water and sewer systems is
$36 billion, which includes the costs Annual cost of corrosion in the transportation category.
of replacing aging infrastructure, lost
6 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002
tance of vehicles over the past two ments in corrosion prevention during by tanker truck and rail car and by spe-
decades by using corrosion-resistant engineering and manufacturing. Total cial containers on vehicles. The total
materials, better manufacturing pro- direct annual corrosion costs are esti-
annual direct cost of corrosion for this
cesses, and more effective engineering mated to be $2.2 billion, including the
sector is more than $0.9 billion, which
and design. The study points out that cost of design and manufacturing ($0.2includes the cost of transporting ve-
individual components could be fur- billion), corrosion maintenance ($1.7 hicles ($0.4 billion) and of specialized
ther improved. The total annual direct billion), and downtime ($0.3 billion).packaging ($0.5 billion), as well as
cost of corrosion was estimated at costs associated with accidental re-
$23.4 billion, with $14.46 billion attrib- RAILROAD CARS leases and corrosion-related transpor-
uted to corrosion-related depreciation There are approximately 1.3 million tation incidents.
of vehicles. Another $6.45 billion is freight cars and 1,962 passenger cars op-
spent on repairs and maintenance erating in the U.S. Covered hoppers Production and
made necessary by corrosion, and (28%) and tanker cars (18%) make up Manufacturing
$2.56 billion represents increased the largest segment of the freight car This category includes industries that
manufacturing costs from corrosion fleet. The transported commodities produce and manufacture products of
engineering and the use of corrosion- range from coal, chemicals, ores, and crucial importance to the U.S. economy
resistant materials. minerals to motor vehicles and farm and and its residents’ standard of living.
food products. Railroad cars suffer both These include oil production, mining,
external and internal corrosion, with a petroleum refining, chemical and phar-
total estimated corrosion cost of $0.5 maceutical production, and agricultural
billion. This cost is divided equally be- and food production. The total annual
tween the use of external coatings and direct cost of corrosion for production
internal coatings and linings. and manufacturing is estimated to be
$17.6 billion (Figure 5).
HAZARDOUS MATERIALS
TRANSPORT OIL AND GAS EXPLORATION
According to the U.S. Department AND PRODUCTION
of Transportation, there are approxi- Domestic oil and gas production is
SHIPS mately 300 million hazardous material considered a stagnant industry in the
The number of ships in the U.S. in- shipments of more than 3.1 billion U.S. because most of the significant avail-
cludes 737 vessels on the Great Lakes, metric tons annually in the U.S. Bulk able reserves have been exploited. Di-
33,668 inland and 7,014 ocean vessels, transport over land includes shipping rect corrosion costs associated with this
12.3 million recreational boats, and
FIGURE 5
122 cruise ships serving North Ameri-
can ports. The shipping industry cost PRODUCTION AND MANUFACTURING ($17.6 BILLION)
of corrosion is $2.7 billion, broken
Oil and Gas Mining
down into new ship construction ($1.1 Exploration and 1%
billion), maintenance and repairs ($0.8 Production ($0.1 billion)
8%
billion), and corrosion-related down- ($1.4 billion)
time ($0.8 billion). Petroleum Refining
Home Appliances 21%
AIRCRAFT 9% ($3.7 billion)
($1.5 billion)
In 1998, the
combined com-
mercial aircraft Food Processing
fleet operated by 12% Chemical,
($2.1 billion) Petrochemical,
U.S. airlines num- Pharmaceutical
bered more than 10%
Agricultural ($1.7 billion)
7,000 airplanes.
6%
Airplanes aging be- ($1.1 billion)
yond their 20-year
design life are of
greatest concern Pulp and Paper
because only re- 34%
($6 billion)
cent designs have
incorporated sig- Annual cost of corrosion in the production & manufacturing category.
nificant improve-
July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 7
activity were determined to be about largest consumer products industries.
$1.4 billion, with $0.6 billion attributed The cost of corrosion in home appli-
to surface piping and facility costs, $0.5 ances includes the cost of purchasing re-
billion to downhole tubing, and $0.3 bil- placement appliances because of prema-
lion to capital expenditures related to ture failures caused by corrosion. For
corrosion. water heaters alone, the replacement
MINING mills and 550 paper mills support its pro- cost was estimated at $460 million per
Corrosion is not considered a signifi- duction. The harsh processing environ- year, with at least 5% being corrosion-
cant problem in mining operations. ments of these facilities make corrosion related. The cost of internal corrosion
The primary life-limiting factors for control especially costly and challeng- protection for all appliances includes the
mining equipment are wear and me- ing. The direct annual cost for this sec- use of sacrificial anodes ($780 million
chanical damage. Maintenance paint- tor is $6 billion, calculated as a fraction per year), corrosion-resistant materials,
ing, however, is heavily relied upon to of the overall maintenance costs. and internal coatings. The annual cost
prevent corrosion, with an estimated of external corrosion protection with
AGRICULTURAL PRODUCTION coatings was estimated at $260 million.
annual expenditure of $0.1 billion. According to the National Agricul- Total annual direct corrosion costs are
PETROLEUM REFINING tural Statistics Service, about 1.9 million at least $1.5 billion.
U.S. refineries represent approxi- farms in the U.S. produce livestock and
mately 23% of the world’s petroleum crops. The primary reasons for replac-
production—the largest refining ca- ing machinery or equipment include Government
upgrading and damage from wear and Although federal, state, and local
pacity in the world. The nation’s 163
corrosion. The corrosion cost in this in- governments own and operate signifi-
refineries supplied more than 18 mil-
dustry was estimated to be $1.1 billion, cant assets under various departments,
lion barrels per day of refined petro-
based on the assumption that corrosion the U.S. Department of Defense was se-
leum products in 1996, with a total cor-
costs represent 5 to 10% of the value of lected for analysis in the study because
rosion-related direct cost of $3.7
all new equipment. it strongly affects the U.S. economy.
billion. Maintenance expenses make
The nuclear waste storage sector was
up $1.8 billion of this total, vessel ex-
FOOD PROCESSING also analyzed.
penses are $1.4 billion, and fouling
The food-processing industry is one
costs are approximately $0.5 billion DEFENSE
of the largest manufacturing industries
annually. Corrosion
in the nation, accounting for approxi-
of military
CHEMICAL, PETROCHEMICAL, mately 14% of total manufacturing out-
equipment
AND PHARMACEUTICAL put. Stainless steel (SS) is widely used in
and facilities
PRODUCTION this industry because of food quality re-
has been an
The chemical industry includes quirements. The total estimated corro- ongoing prob-
those manufacturing facilities that pro- sion cost is $2.1 billion, including SS lem that is becoming more prominent
duce bulk or specialty compounds used for beverage production, food ma- as the acquisition of new equipment
from chemical reactions between or- chinery, cutlery and utensils, commer- slows down. Corrosion is potentially the
ganic and/or inorganic materials. The cial and restaurant equipment, appli- number one cost driver in lifecycle costs
petrochemical industry includes facili- ances, aluminum cans, and the use of in this sector—approximately $20 bil-
ties that manufacture substances from corrosion inhibitors. lion per year.
raw hydrocarbon materials such as
ELECTRONICS NUCLEAR WASTE STORAGE
crude oil and natural gas. The pharma-
Computers, integrated circuits, and Nuclear wastes are generated from
ceutical industry formulates, fabricates,
microchips are exposed to a variety of spent fuel, dismantled nuclear weapons,
and processes medicinal products from
environmental conditions, and corro- and products such as radio pharmaceu-
raw materials. Annual direct costs to-
sion manifests itself in several ways. It is
ticals. The most important design con-
tal $1.7 billion for this sector (8% of
also insidious and cannot be readily de- sideration for safe storage of nuclear
capital expenditures). This does not in-
tected; therefore, when corrosion fail- waste is effective shielding of radiation.
clude corrosion costs related to opera-
ure occurs, it is often dismissed as a A 1998 total lifecycle analysis by the U.S.
tion and maintenance—this would re-
product failure and the component is re- Department of Energy for the perma-
quire detailed study of data from
placed. Although the cost of corrosion nent disposal of nuclear waste in Yucca
individual companies.
in this industry could not be estimated, Mountain, Nevada, estimated the reposi-
PULP AND PAPER it is believed that a significant part of all
tory cost by the construction phase
The $165 billion pulp, paper, and al- electric component failures is caused by (2002) to be $4.9 billion with an aver-
lied products industry supplies the U.S. corrosion. age annual cost of $205 million through
with approximately 300 kg of paper per HOME APPLIANCES 2116. Of this cost, $42.2 million is cor-
person each year. More than 300 pulp The appliance industry is one of the rosion-related.
8 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002
Best-Practice but the indirect costs—those incurred
by users—increase expenses tenfold.
For example, a traffic tie-up or detour
caused by a bridge failure or its reha-
bilitation and maintenance can result

Engineering Saves in wear and tear on automobiles, in-

creased gasoline use, delays in product
transport, missed appointments, and
other inconveniences that result in lost

Billions of Dollars dollars.

A typical dilemma for bridge man-
agement is how to allocate limited
funds for construction, rehabilitation,
and maintenance. Funding typically
comes from city, state, and federal
For decades, corrosion professionals have sources that often have spending re-
strictions. It is therefore difficult to
made great strides in developing cutting- make optimal decisions about when
edge technologies, employing effective management and how to inspect, repair, or replace
practices, and increasing public awareness about the bridges while minimizing the impact
critical need for corrosion control worldwide. The U.S. on drivers. The study identifies an ur-
corrosion cost study has determined, however, that gent need for the allocation of greater
incorporating the latest corrosion control strategies funding so bridge engineers can prop-
erly maintain the structures based on
still requires widespread changes in industry timely inspections. Increasing use of
management and government policies as well as corrosion-resistant alloys, improved
additional advances in science and technology. As the coatings, and durable concretes will
following examples show, implementation of best- further reduce the large direct and in-
practice engineering in every sector could save direct expenses associated with bridge
billions of dollars in the long run. corrosion.

Transmission Pipelines veloping an optimum approach that

Public safety concerns have driven
new regulations and corrosion control
practices for gas and liquid transmis-
sion pipelines over the past few years,
following a number of high-profile
pipeline failures. Data management,
system quantification through the use
of global positioning systems, remote
monitoring, and
electronic equip-
ment documents
have significantly
improved several
areas of pipeline
corrosion mainte-
nance. The new-
est developments
center 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-
includes both pipeline inspection and
corrosion prevention strategies. In-
spection strategies should include in-
line inspection, hydrostatic testing, and
direct assessment—all currently avail-
able methodologies—depending on
the pipeline conditions. By developing
new and improved inspection tech-
niques and corrosion prediction mod-
els, corrosion professionals will be able
to determine inspection intervals more
accurately, prioritize the most effective
corrosion-prevention strategies, and,
ultimately, increase the lifetime of the
nation’s pipelines, ensuring safe and
cost-effective transport of valuable en-
ergy sources.
Highway Bridges
The dollar impact of corrosion on
reinforced-concrete, prestressed con-
crete, and steel bridges is considerable,
July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 9

Water Distribution
In 2000, the Water Infrastructure
Network (WIN) reported that the ag-
ing water distribution infrastructure
requires major investments for main-
tenance and replacement of pipes and
mainlines. Substantial amounts of wa-
ter are lost from corroded and ruptured
mains, resulting in inflated water pric-
ing for consumers and overcapacity in
water treatment plants. Corrosion pro-
fessionals are striving to use economi-
cal repair and replacement methodolo-
gies while maintaining ongoing
service.
Water transmission and distribution
systems can be effectively protected
from internal corrosion by using cor-
rosion inhibitors in combination with
pH adjusters and alkalinity control.
Cement mortar linings resist corrosion
in steel and iron pipes, and pipes can
be externally protected with coatings
and cathodic protection. These sys-
tems, when applied correctly by
trained professionals, help prevent
costly repairs and repaving—expenses
that currently make up about 50% of
water department budgets.
Unfortunately, there is a lack of
complete and up-to-date information
on all water systems, with limited com-
munication among water utilities and,
thus, limited awareness and implemen-
tation of available corrosion control
technologies. The study recommends
establishing a national effort to de-
crease the amount of unaccounted-for
water and create a resource where
10 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002
agencies can obtain training and sup-
port for corrosion protection plans. It
also stresses the importance of regu-
larly scheduled corrosion inspections
for water treatment facilities, water
tanks, towers, and transmission and
distribution systems.
Aircraft
One of the major concerns of the
aircraft and airline industry is the ag-
ing of several types of aircraft beyond
their design life. Airline operators have
been mandating more frequent inspec-
tions and maintenance in past years in
response to considerable attention
from industry and the government
about the safety of older planes. Al-
though key improvements have been
made in the corrosion design and
manufacturing of new airplanes, in-
cluding using more corrosion-resistant
materials, operators should have a
good corrosion control program in
place throughout the life of the air-
plane.
The study identifies the need to de-
velop corrosion prediction models that
help define a cost-effective integrity
program. Improved inspection and
monitoring techniques will expand the
capabilities of detecting and monitor- Automobiles
ing flaws from an early stage, prevent- Until the late 1950s, corrosion of
ing much bigger and costlier problems motor vehicles was a concern largely
in the future. limited to marine environments. In sub-
sequent years, the increasing use of
deicing salts for roadways and bridges
caused vehicles in the snowbelt area
of the U.S. to corrode and fall apart
within a few years of their initial pur-
chase. Fortunately, cars and trucks
manufactured in recent decades have
very little visible corrosion because of
vast improvements in manufacturing
and design technologies. The annual
cost of corrosion is still substantial,
however, and more can be done to re-
duce this cost.
According to the study, automobile
manufacturers should build on the his-
tory and success of today’s corrosion-
resistant vehicles. Every new vehicle
should 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 industry
ensures that a good balance between
corrosion resistance and vehicle cost
will probably be achieved.
T
he current corrosion cost study
clearly reveals that, while tech-
nological advancements have
provided many new ways to
Moving Forward—
prevent corrosion, better corro-
sion management can be achieved using
preventive strategies in nontechnical and
technical areas. These strategies are iden-
Preventive
tified as follows:

■ Increase awareness of significant

corrosion costs and potential cost
savings.
Strategies
■ Change the misconception that noth- U.S. Corrosion Cost Ordering the U.S. Report
ing can be done about corrosion. Study Web Site To obtain a copy of “Corrosion
■ Change policies, regulations, stan- Developed Costs and Preventive Strategies in
dards, and management practices to in- and maintained the United States,” Report FHWA-
crease corrosion cost savings through by CC Technolo- RD-01-156, contact the National
sound corrosion management. gies, Inc., the Cost of Corrosion Technical Information Service,
Web site that is associated with 5285 Port Royal Road, Springfield,
■ Improve education and training of staff the study features a summary, VA 22161; phone: 703/605-6000;
in the recognition of corrosion control. corrosion cost details by sector Web site: www.ntis.gov. A tech
■ Implement advanced design practices and corrosion control method, rec- brief is also available as Report
for better corrosion management. ommendations, a slide presenta- FHWA-RD-01-157. A limited num-
tion, downloadable PDF files of the ber of copies are available from
■ Develop advanced life-prediction and
report, and more. Web site: the R&T Report Center, phone: 301/
performance-assessment methods.
www.corrosioncost.com. 577-0818; fax: 301/577-1421.
■ Improve corrosion technology
through research, development, and
implementation.
About the Study Participants
The U.S. continues to face critical chal-
lenges in the field of corrosion preven-
The U.S. FHWA commissioned the corrosion cost study through its
tion and control, where aging equipment,
Turner-Fairbank Highway Research Center. Turner-Fairbank coordinates
new product formulations, environmen-
a program of innovative research, development, and technology that ad-
tal requirements, and strict budgets re-
dresses the safety, efficiency, and operation needs of the national high-
quire corrosion control programs that are
way system. Web site: www.tfhrc.gov.
designed for specific situations by highly
skilled professionals. By following appro-
CC Technologies Laboratories, Inc., an operating company of CC Tech-
priate strategies and obtaining sufficient
nologies, conducted the study. The engineering, research, and testing
resources for corrosion programs, best
firm specializes in corrosion, corrosion control, and pipeline and facility
engineering practices can be achieved.
integrity services. Web site: www.cctechnologies.com.
Controlling corrosion requires significant
expenditures, but the payoff includes
NACE International, the technical society for corrosion professionals
increased public safety, reliable perfor-
worldwide, sponsored the study. With approximately 15,000 members,
mance, maximized asset life, environmen-
NACE’s mission is to provide education and communicate information to
tal protection, and more cost-effective
protect people, assets, and the environment from the effects of corro-
operations in the long run.
sion. Web site: www.nace.org.

July 2002 SUPPLEMENT TO MATERIALS PERFORMANCE 11

12 SUPPLEMENT TO MATERIALS PERFORMANCE July 2002